GOOD Statement by Brett Herron,
GOOD Secretary-General & Member of Parliament
4 November 2022
The World Bank’s approval of a $497 million loan to repurpose the Komati Power Station in Mpumalanga, without job losses, is a major boost for South Africa’s so-called just transition from coal-fired energy generation to renewables.
The repurposed plant is slated to deliver to 220MW in wind and solar-generated energy to the grid, and include 150MW in battery storage capacity.
With South Africans continuing to suffer the impacts of regular power failures, few will disagree that it’s a step in the right direction.
The project will in theory enhance energy security in South Africa, and form an important building block in developing a local renewable energy industry.
The objective to re-skill Komati’s workers is laudable. It is the first tangible social intervention of the so-called “just transition”.
The fact that the Komati Training Facility is already operational and working on the re-skilling of workers, in partnership with the Cape Peninsula University of Technology and the Global Energy Alliance for People and Planet, is very encouraging.
The coal industry presently puts food on tens of thousands of South African tables. There will be no justice in the transition if these workers are left behind.
What needs to happen next is urgent implementation of the project, with necessary professional oversight in place to ensure we don’t end up with another Kusile or Medupi, two massive coal-fired plants that have run hugely over budget, taken longer to implement than foreseen, and are already showing signs of malperformance and failure.
Successfully implemented, the project will provide a template for the transition of other power stations nearing end of life.
The longer we delay the just transition process, the closer we skate to an all-out energy crisis and the brink of economic disaster.
South Africa is already in the precarious position of depending on ever-increasing loans. We must ensure that the money we borrow creates opportunities to sustainably turn the energy corner. When we do, we will begin to restore citizen’s trust in the State.
We note that the World Bank loan is separate from the $8.5bn that has been committed by the Just Energy Transition (JET) Partnership comprising the UK, US, Germany, France and the EU.
We look forward to the finalisation of the global climate plan which is expected to be announced at the COP27 conference in Egypt next week, and will help shape further progress in South Africa’s energy transition.
Media Enquiries:
Brett Herron, GOOD Secretary-General & Member of Parliament
Cell: 0825183264
Email: bretth@forgood.org.za
Janke Tolmay, GOOD Media Manager
Cell: 0733671223
Email: janke@forgood.org.za