Ongoing analysis and work done by various groups into the so-called Just Energy Transition (JET) points to the potential creation of 300 000 direct, indirect and induced jobs in South Africa’s electricity sector over the next decade, Eskom CEO Andre de Ruyter said on October 22.

He added that this figure was over and above accounting for job losses in the coal sector as a result of the looming shuttering of some coal-fired power generation units.

Speaking at the South African National Energy Association Unlock Conference, De Ruyter explained that the JET – through significant investment in solar photovoltaic (PV) and wind power – would create a favourable environment for job creation, which was crucial in South Africa.

In addition, he said the push into renewable energy would also drive local manufacturing capability, as everything other than the solar PV wafers (a component of which Chinese manufacturing holds the monopoly and economies of scale) could and should be made in South Africa.

NEW ELECTRICITY HUBS

Eskom has started work on repurposing its Komati power station from being formerly coal-fired with a nameplate capacity of 1 000 MW, to being a small, pilot-scale plant producing solar PV power, as well as making land available for agriculture – a term De Ruyter called “agri-voltaic”.

Of the four power stations Eskom plans to retire by 2025 – Komati, Grootvlei, Hendrina and Camden – Komati is well positioned to act as a proof-of-concept and a flagship project from the group.

“We think we can also accelerate repowering at other [Eskom] power stations if this is enabled by the availability of sufficient funding to support accelerated decarbonisation,” he noted.

In addition to repurposing Komati power station, Eskom is also setting up a small assembly line for microgirds in Mpumalanga.

“These microgirds are very exciting; we already have indicative market assessments that indicate [Eskom] will get [about] 100 of these units [a year], spread out through our own rural electrification programmes, also for agencies like the World Bank, to provide electricity for remote areas, in countries like Lesotho,” he said.

CLIMATE CHANGE MITIGATION

“Unfettered carbon emissions on a planet-wide basis, not least caused by the development of the world, will cause climate change-related challenges,” stated De Ruyter.

In this regard, he pointed out that, currently, Eskom’s power plant mix majorly (90%) comprises coal-fired baseload power stations, which is “way above the global average”.

“The South African national greenhouse gas [GHG] inventory highlights that electricity generation from fossil fuels contributes about 45% of South Africa’s GHG emissions,” said De Ruyter.

Therefore, he said it was clear that, to address climate-related risks in South Africa, it was critical to reduce emissions related to electricity.

Also, Eskom as the largest electricity producer meant it was becoming “a desirable counterpart” for developmental finance institutions and lenders as it pivots away from new coal-fired projects and instead towards renewable and less carbon-intensive generation, said De Ruyter.

This desire would be borne from investors being keen to engage with a single entity, rather than with multiple partners to achieve a meaningful reduction in carbon emissions, he added.

Eskom’s approach to reducing its carbon footprint would be multi-facetted as it endeavours to transition to net zero GHG emissions by 2050, noted De Ruyter.

“A critical enabler of [the JET] is [Eskom’s] aging generation fleet, which by now has reached the middle or even the end of their respective lives. Eskom will be shutting down between 8 000 MW and 12 000 MW of coal-fired power plants over the next decade in accordance with IRP 2019,” he said. This will increase to about 22 GW by 2035, or roughly half of the total installed capacity that Eskom currently has.

“This makes a lot of economic sense,” stated De Ruyter. “To keep operating unreliable, costly power stations that require, [among other things] an investment of R300-billion to comply with minimum emissions standards does not make a huge amount of economic sense.”

“If we can get this JET to take off, it will enable us to plug the supply/demand gap sooner and more cost-effectively as renewable energy has proven to be the fastest way, and increasingly also the most affordable way to introduce new capacity, thereby reducing the risk of load-shedding,” he said.

For rollout timeframe reference, De Ruyter pointed out that solar PV projects take between 18 and 24 months to complete, with wind projects having a lead time of between 24 and 36 months and gas requiring 24 to 60 months.

“In contrast, coal-fired projects – if you can get financing [and] environmental approvals, and if you can insure your plant and . . . not get bogged down in court cases by nongovernmental organisations – will take between 10 and 12 years to complete,” he said.

Nuclear projects will take between 12 and 15 years to complete.