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Government is ‘open to adjusting energy blueprint’

Country is under pressure to speed up transition to renewable energy that may require revising the Integrated Resource Plan, Barbara Creecy says

(Bloomberg)

The government is open to revising the blueprint for SA’s energy mix as it faces growing pressure to speed up the move to renewable energy, according to forestry, fisheries and environmental affairs minister Barbara Creecy.

The blueprint, known as the Integrated Resource Plan (IRP), outlines the country’s move from coal to cleaner energy sources by 2030 as part of the global commitment to reduce greenhouse gases and lower carbon emissions.  

“My colleague [Mineral Resources and Energy Minister Gwede Mantashe] ... has indicated to the climate commission that he is open to receiving presentations on revisions on the IRP, which obviously could be necessary if we are to achieve the lower limit of our nationally determined contribution (NDC),” Creecy told MPs this week.

The climate commission was established by President Cyril Ramaphosa last year to facilitate a just and equitable transition towards a low-emissions and foster a climate-resilient economy.

SA is regarded as the 13th biggest emitter of carbon dioxide and though the move to renewable energy is gaining traction, it still relies depends on coal for more than 80% of its power. 

Both the IRP and the revised NDC — each party to the Paris Agreement on climate change is required to establish an NDC and update it every five year — see coal remaining part of SA’s energy mix beyond 2030 even as the share of renewable energy increases significantly.

At a recent energy summit, Mantashe, a self-confessed coal fundamentalist, said the need for coal is growing, and generating revenue for the fiscus.

“The key juggling act is we have 88,000 workers who are directly dependent on the coal value chain in this country ... as we transition, we have to make sure that we repurpose power plants that are going to be decommissioned, and direct jobs are saved through that repurposing,” Creecy said.

“We have international [climate change] commitments that we intend to honour. We also have a commitment to climate justice, which means that those who are most vulnerable in our society, workers in the coal value chain and citizens who live in the towns in Mpumalanga that will be most affected by this transition, cannot be left to carry the consequences of transitioning away from coal,” she added.

Creecy reiterated that the government is working with Eskom to look at alternatives, and the possibilities of repurposing coal power stations.

“We are working with the minister of science and technology and the minister of labour to make sure we have proper plans with regards to reskilling workers [in the coal value chain] to ensure that no-one is left behind.”

Last year the UK, the US, France, Germany and the EU offered to mobilise an initial $8.5bn in concessional financing and grants over the next three to five years to assist with SA’s energy transition.

A significant proportion of the funding is expected to be used for Eskom’s transition plans, which include decommissioning and repurposing old coal-fired power stations.

phakathib@businesslive.co.za

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