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Energy in South Africa

South Africa has a large energy sector, being the third-largest economy in Africa. The country consumed 227 TWh of electricity in 2018.[1] The vast majority of South Africa's electricity was produced from coal, with the fuel responsible for 88% of production in 2017.[2] South Africa is the 7th largest coal producer in the world.[2] As of July 2018, South Africa had a coal power generation capacity of 39 gigawatts (GW).[2] South Africa is the world's 14th largest emitter of greenhouse gases.[2] South Africa is planning to shift away from coal in the electricity sector and the country produces the most solar and wind energy by terawatt-hours in Africa.[3] The country aims to decommission 34 GW of coal-fired power capacity by 2050.[2] It also aims to build at least 20 GW of renewable power generation capacity by 2030.[4] South Africa aims to generate 77,834 megawatts (MW) of electricity by 2030, with new capacity coming significantly from renewable sources to meet emission reduction _targets.[5][6] Through its goals stated in the Integrated Resource Plan, it announced the Renewable Energy Independent Power Producer Procurement Programme, which aims to increase renewable power generation through private sector investment.[7][8]

Electricity production in South Africa by source 2010-2023

Overview

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Energy in South Africa[9]
Population
(million) 		Prim. energy
(TWh) 		Production
(TWh) 		Export
(TWh) 		Electricity
(TWh) 		CO2-emission
(Mt)
2004 45.5 1,525 1,814 279 226 343
2007 47.6 1,562 1,856 254 239 346
2008 48.7 1,564 1,895 203 232 337
2009 49.3 1,675 1,868 158 224 369
2010 50.0 1,592 1,889 199 240 347
2012 50.6 237 368
Change 2004-10 9.8% 4.4% 4.1% -29% 6.0% 1.0%
Mtoe = 11.63 TWh, Prim. energy includes energy losses

Electricity

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See also: List of power stations in South Africa
 
Eskom Nation Grid Production By Source in April 2023

Power Station Maximum Generating Capacity as of 2019

  Coal (83%)
  Pumped Storage (6%)
  Gas (5%)
  Nuclear (4%)
  Hydro (2%)
  Wind (0.2%)

Eskom

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Main article: Eskom

Eskom is a South African electricity public utility, established in 1923 as the Electricity Supply Commission (ESCOM) and also known by its Afrikaans name Elektrisiteitsvoorsieningskommissie (EVKOM), by the government of the Union of South Africa in terms of the Electricity Act (1922). Eskom represents South Africa in the Southern African Power Pool. The utility is the largest producer of electricity in Africa,[10][11] is among the top seven utilities in the world in terms of generation capacity and among the top nine in terms of sales. It is the largest of South Africa's state owned enterprises. Eskom operates a number of notable power stations, including Kendal Power Station, and Koeberg nuclear power station in the Western Cape Province, the only nuclear power plant in Africa. The company is divided into Generation, Transmission and Distribution divisions and together Eskom generates approximately 95% of electricity used in South Africa.

Eskom's can generate a total nominal capacity of 44GW as at March 2019.[8] Coal fired power stations make up 83% to the nominal capacity mix generated just over 90% of the total energy in 2018.[8] The rest of the energy generated came from a combined contribution by other power stations which accounted for 17% in total nominal capacity.[8]

In 2024, repairs to Eskom's coal-fired power stations resulted in a stable power supply for three consecutive months, reducing solar installations from 97 MW to 26 MW monthly. Imports of photovoltaic cells and modules from China dropped from over $180 million in May 2023 to less than $40 million per month since August 2023.[12]

Coal

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Main article: Coal in South Africa
 
South Africa coal production (red) and exports (black)

South Africa produces in excess of 248 million tonnes of coal[13] and consumes almost three-quarters of that domestically. Around 77% of South Africa's energy needs are directly derived from coal[14] and 92% of coal consumed on the African continent is mined in South Africa.[15] According to their official website, this is unlikely to change very much in the next few decades, as there is considered to be a "relative lack of suitable alternatives to coal as an energy source." The mining done natively in South Africa is split 51/49 between underground and open-cast mining. This mining is relatively concentrated; 11 mines account for 70 percent of the output.[16] South Africa is the seventh biggest coal producer as of 2020, producing 248.3 Mt, below Russia 399.8 Mt[17]

Coal production 2011-2021 (Exajoules)[18]: 38 
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
6.00 6.14 6.08 6.20 5.96 6.01 5.97 6.01 6.02 5.82 5.55

Coal and Environment

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See also: Environmental impact of the coal industry

South African Reserves by Coalfields[19]

  Highveld (31%)
  Witbank (30%)
  Ermelo (13.8%)
  Waterberg (11%)
  Vrg. -Sasolburg (6%)
  South Rand (2%)
  Utrecht (2%)
  Klipriver (1.9%)
  Soutpansberg (1%)
  Other (1.3%)

The largest coal deposits in South Africa are to be found in the Ecca deposits, a stratum of the Karoo Supergroup, dating from the Permian period, between 280 and 250 Ma. The Ecca Group is extensive, covering around two-thirds of South Africa (much of it covered by slightly younger rocks - see diagram on the left). Only the northern and north-eastern portion of these Ecca deposits is coal-bearing, but it nevertheless contains more than a third of all coal reserves in the Southern Hemisphere.[20]

Coal production and use creates in South Africa Coal combustion wastes (CCW), coal mine wastes (AMD) and toxic coal land fires. Coal combustion wastes (CCW), contain toxic substances like arsenic, cadmium, chromium and lead. Hundreds of South African old coal mines are filled with sulphate salts, heavy metals and carcinogenic substances like benzene and toluene. This AMD damages wildlife and spreads illness and disease. According to Greenpeace most shockingly is eMalahleni 'place of coal', Mpumalanga province, surrounded by 22 collieries and steel, vanadium and manganese plants. One of the biggest old mines is the Transvaal and Delagoa Bay (T&DB) mine, closed in 1953. 60 km downstream from Emalahleni AMD leaked into the water supply in 2006 and 2007 killing thousands of fish, crocodiles and freshwater turtles and poisoning the water used by communities. Coal fires continue in the disused mines.[21]

Coal Business

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The five largest coal mining companies account for around 85% of all production. They are Anglo American plc, South32's South Africa Energy Coal,[22] Sasol Mining, Glencore Xstrata, and Exxaro.[6]

Open-pit mining account for roughly half of South African coal mining operations, the other half being sub-surface.[6][16]

Coalfields in South Africa

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Renewable energy

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Main article: Renewable energy in South Africa

The portion of renewable energy as a percentage of final energy consumption in 2012 was 16.9%. Most of that was from the burning of traditional biofuels for heating.

6.6% of electricity produced in South Africa in 2018 came from renewables (wind power, hydropower and solar power; biofuels did not contribute much to electricity production).[24]

Source:[25]
 
Estimated annual South African embedded solar PV 2016-2023

In terms of share of GDP in 2012, South Africa was the fourth largest investor in renewable power in the world after Uruguay, Mauritius and Costa Rica. That rate of investment is expected to continue. Renewable energy will play a larger role in future.[26]

South Africa's per capita greenhouse gas emissions are the highest in Africa.[27]

South Africa's commitment to renewable energy lags behind that of China, India, Brazil, and Russia. South Africa receives more than twice as much sunshine than Germany, where over 15 percent of the national electricity supply comes from renewable sources.[28][29][30][31]

The Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) is an initiative by the South African government, laid out by the Integrated Resource Plan that is aimed at increasing electricity generation through private sector investment in solar photovoltaic and concentrated solar, wind, small hydro (<40 MW), landfill gas, biomass, and biogas.[7]

Government incentives

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"South Africa's National Energy Regulator (NERSA) announced 31 March 2009 the introduction of a system of feed-in tariffs designed to produce 10 TWh of electricity per year by 2013. The feed-in tariffs announced were substantially higher than those in NERSA's original proposal. The tariffs, differentiated by technology, will be paid for a period of 20 years.

NERSA said in its release that the tariffs were based, as in most European countries, on the cost of generation plus a reasonable profit. The tariffs for wind energy and concentrating solar power are among the most attractive worldwide.

The tariff for wind energy, 1.25 ZAR/kWh (€0.104/kWh) is greater than that offered in Germany and more than that proposed in Ontario, Canada.

The tariff for concentrating solar, 2.10 ZAR/kWh, is less than that in Spain, but offers great promise in the bright sunlight of South Africa. NERSA's revised program followed extensive public consultation.

Stefan Gsänger, Secretary General of the World Wind Energy Association said in a release that "South Africa is the first African country to introduce a feed-in tariff for wind energy. Many small and big investors will now be able to contribute to the take-off of the wind industry in the country. Such decentralised investment will enable South Africa to overcome its current energy crisis. It will also help many South African communities to invest in wind farms and generate electricity, new jobs and new income. We are especially pleased as this decision comes shortly after the first North American feed-in law has been proposed by the Government of the Canadian Province of Ontario".[32]

However, the feed-in tariff was abandoned before being promulgated in favor of a competitive bidding process launched on 3 August 2011. Under this bidding process, the South African government plans to procure 3,750 MW of renewable energy: 1,850 MW of onshore wind, 1,450 MW of solar PV, 200 MW of CSP, 75 MW of small hydro, 25 MW of landfill gas, 12.5 MW of biogas, 12.5 MW of biomass, and 100 MW of small projects. The bidding process comprises two steps:

  • Qualification phase. Projects are assessed based on structure of the project, legal, land acquisition and use, financial, environmental consent, technical, economic development and bid guarantee
  • Evaluation phase. Compliant bids are then evaluated based on: (1) price relative to a ceiling provided in bid documentation, accounting for 70% of the decision, and (2) economic development, accounting for 30% of the decision.

The first round of bids was due on 4 November 2011. The SA government is expected to announce preferred bidders before COP17 in December. PPA's are expected to be in place by June 2012. Projects should be commissioned by June 2014, except CSP projects which are expected by June 2015.

The average indexed bid prices (2012) for the supply of energy in the first bid window for the various renewable energy technologies were:

  • Concentrating solar power (CSP): R2,69 per kWh
  • Solar photo-voltaic (PV): R2,76 per kWh
  • Wind: R1,14 per kWh

The average indexed bid prices (2012) for the supply of energy in the second bid window

  • Concentrating solar power (CSP): R2,51 per kWh
  • Solar photo-voltaic (PV): R1,65 per kWh
  • Wind: R0,90 per kWh
  • Small hydro: R1,03 per kWh

The average indexed bid prices (2013) for the supply of energy in the third bid window

  • Concentrating solar power (CSP): R1,64 per kWh
  • Solar photo-voltaic (PV): R0,99 per kWh
  • Wind: R0,74 per kWh
  • Landfill gas: R0,94 per kWh
  • Biomass: R1,39 per kWh

Eskom claims a standard electricity production price (2012)of R0.31 per kWh (Eskom-predominately Coal and Nuclear),[33] however energy generated from Eskom's new coal power plants have been estimated to be R0.97 per kWh.

Nuclear power

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Main article: Nuclear energy in South Africa

Koeberg nuclear power station accounted for 4.5% of the country's electricity production in 2018.[24] It has two pressurized water reactors based on a French design and rated at 0.93 GW net power each (1.86 GW in total). It is the only commercial nuclear powerplant in the African continent.

Nuclear energy consumption 2011-2021 (Exajoules)[18]: 41 
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
0.12 0.12 0.13 0.13 0.11 0.14 0.13 0.11 0.12 0.13 0.09

Controversies

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Secret price contracts between Eskom and the Australian mining company BHP Billiton less than half Eskom's reported production price in the period.[34]

Many abandoned mines have been burning since the 1940s. Persistent and toxic mine chemical leakages pollute waterways and kill animals. In 2006, about 80% of South Africa's coal exports was in Europe.[21]

Government policies

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Carbon tax

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South Africa Finance Minister Pravin Gordhan first announced a carbon tax in 2010 that was to begin in 2015.[35] After numerous delays, the tax was finally passed in 2019 and is due to come into effect in 2022. The tax is set at a base rate R120 (US$8.12) per tonne of CO2 equivalent, with an effective rate of R6–48 (US$0.42–3.32) after accounting for tax breaks.[36][37] The National Treasury has proposed to increase the carbon tax rate by a minimum of US$1 from 2023 to 2025 with gradual increment to US$20 (~R350) by 2026 and to US$30 (~R530) by 2030.[38][39]

See also

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References

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  1. ^ "South Africa - Countries & Regions". IEA. Retrieved 3 August 2020.
  2. ^ a b c d e "The Carbon Brief Profile: South Africa". Carbon Brief. 15 October 2018. Retrieved 3 August 2020.
  3. ^ "SA is the biggest wind and solar producer in Africa, but most of its energy still comes from coal". The Outlier. 24 May 2022. Archived from the original on 2 November 2022. Retrieved 11 June 2022.
  4. ^ "South Africa Energy Outlook – Analysis". IEA. Retrieved 16 June 2020.
  5. ^ "Renewables in, coal out: South Africa's energy forecast". Renewable Energy World. 18 October 2019. Archived from the original on 16 June 2020. Retrieved 16 June 2020.
  6. ^ a b c "Coal". Department of Energy (South Africa). Retrieved 8 January 2010.
  7. ^ a b "Renewable Independent Power Producer Programme | South African Government". gov.za. Retrieved 12 May 2022.
  8. ^ a b c d "THE SOUTH AFRICAN ENERGY SECTOR REPORT 2021" (PDF). 2021.
  9. ^ IEA Key World Energy Statistics Statistics 2013, 2012 Archived 9 March 2013 at the Wayback Machine, 2011 Archived 27 October 2011 at the Wayback Machine, 2010 Archived 11 October 2010 at the Wayback Machine, 2009 Archived 7 October 2013 at the Wayback Machine, 2006 Archived 12 October 2009 at the Wayback Machine IEA October, crude oil p.11, coal p. 13 gas p. 15
  10. ^ Dana Sanchez (28 October 2014). "Which Countries Produce And Consume Most Electricity in Africa?". Archived from the original on 5 November 2014. Retrieved 28 October 2014.
  11. ^ "Electricity - production - Country Comparison - TOP 100".
  12. ^ Burkhardt, Paul (12 June 2024). "Solar Installments Slow in South Africa After Blackouts Ease". www.bloomberg.com. Retrieved 16 June 2024.
  13. ^ "BP Statistical review of world energy 2012". British Petroleum. Archived from the original (XLS) on 19 June 2012. Retrieved 18 August 2011.
  14. ^ "Coal". Department of Energy (South Africa). Retrieved 8 January 2010.
  15. ^ "International Energy Outlook 2009, Chapter 4 – Coal". Energy Information Administration. 27 May 2009. Retrieved 14 January 2010.
  16. ^ a b "Energy Sources: Coal | Department: Energy | REPUBLIC OF SOUTH AFRICA". energy.gov.za. Retrieved 23 January 2020.
  17. ^ IEA Key energy statistics 2010 Archived 11 October 2010 at the Wayback Machine Page 15
  18. ^ a b "bp Statistical Review of World Energy" (PDF). www.bp.com (71st ed.). 2022. Retrieved 17 June 2024.
  19. ^ Schmidt, Stephan. "Coal deposits of South Africa - the future of coal mining in South Africa" (PDF). Institute for Geology, Technische Universität Bergakademie Freiberg. Retrieved 14 January 2010.
  20. ^ Schlüter & Trauth 2006, p. 214
  21. ^ a b The True Cost of Coal Archived 30 November 2008 at the Wayback Machine Greenpeace 27 November 2008 pages 48–53
  22. ^ "South32 - South Africa Energy Coal".
  23. ^ a b c d e f "About SA coalfields". Keaton Energy. Archived from the original on 14 June 2009. Retrieved 15 January 2010.
  24. ^ a b "Data tables – Data & Statistics". IEA. Retrieved 11 March 2022.
  25. ^ "Global Tracking Framework 2015". The World Bank. Archived from the original on 5 September 2015. Retrieved 14 October 2015.
  26. ^ "RENEWABLES 2014 GLOBAL STATUS REPORT". REN21. Retrieved 30 March 2015.
  27. ^ Laboratory, Oak Ridge National. "Carbon Dioxide Information Analysis Center (CDIAC)". cdiac.ess-dive.lbl.gov. Retrieved 26 November 2017.
  28. ^ Mohamed, Seeraj. "The energy-intensive sector: considering South Africa's comparative advantage in cheap energy" (PDF). Archived from the original (PDF) on 8 October 2011.
  29. ^ "Statistics South Africa Category Archives: Energy". 27 July 2017. Retrieved 25 November 2017.
  30. ^ "CO2 Emissions from Fuel Combustion: 2011Highlights". IEA. Archived from the original on 17 April 2010. Retrieved 17 October 2011.
  31. ^ "World's Largest Solar Park to be in South Africa?". CleanTechnica. 26 October 2010. Retrieved 17 October 2011.
  32. ^ http://www.renewableenergyworld.com/rea/news/article/2009/04/south-africa-introduces-aggressive-feed-in-tariffs "South Africa Introduces Aggressive Feed-in Tariffs", Paul Gipe, Contributing Writer, 10 April 2009
  33. ^ "Renewable Energy IPP Procurement Programme: Window two Preferred Bidders' announcement". Department of Minerals and Energy. Retrieved 13 July 2013.
  34. ^ Who's holding us back? Full report. Greenpeace, 23 November 2011
  35. ^ "South Africa gears up for carbon tax". CPC News. 16 June 2010. Archived from the original on 28 August 2010. Retrieved 16 June 2010.
  36. ^ "South African carbon tax finally becomes law". Reuters. 26 May 2019. Archived from the original on 9 July 2021. Retrieved 6 July 2021.
  37. ^ Steenkamp, Lee-Ann. "South Africa's carbon tax rate goes up but emitters get more time to clean up". The Conversation. Retrieved 29 September 2022. carbon tax rate, which started at a base rate of R120 (currently less than US$8) per ton carbon dioxide equivalent (tCO₂e) emissions
  38. ^ "Government doubles down on new tax rules for South Africa". Business Tech. Retrieved 29 September 2022. The National Treasury is proposing that the carbon tax rate increase by a minimum of US$1 between 2023 to 2025 and that it increases gradually to US$20 in 2026 and US$30 in 2030.
  39. ^ Omarjee, Lameez. "Treasury won't ease carbon tax hikes this decade". News24. Retrieved 29 September 2022. Treasury's plans to hike the carbon tax steeply to $20 (~R350) by 2026 and $30 (~R530) by 2030
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