Cosatu announced in April it would collaborate with the National Union of Mineworkers (NUM) in a campaign to prevent the loss of thousands of jobs that would follow the decommissioning of five coal-fired power stations.
Much of the debate centres on the reason for the decommissioning. The signing of outstanding contracts with independent power producers (IPPs) by Eskom has come close to the centre of this controversial issue and the campaign target.
Concerns about job losses are understandable, as is the belief that a just transition into renewable energy should be accepted by everyone. However, directing the campaign against the IPPs appears to be a knee-jerk reaction that has not considered the long-term implications.
The government, using the Renewable Energy Independent Power Producers Procurement Programme, directed Eskom to contract IPPs to provide clean energy to the national grid.
This energy is obtained from renewable sources such as wind and solar. IPPs produce at most only 4%-5% of the total electricity that Eskom provides to SA.
The prices of renewable energy has decreased to the point where wind and solar are now the cheapest source of new-build electricity generation capacity in the country.
Eskom produces most of its electricity from coal-fired power stations, which have an operational lifetime of about 50 years before they need to be decommissioned. In countries such as the US, their life ends at 40 years. Some power stations suggested for decommissioning are more than 50 years old and will be more than 60 years old by the time they are decommissioned.
The draft Integrated Resource Plan, the national plan for electricity infrastructure, indicates the power stations at the centre of these intended campaigns were slated to close within the next 10 years. Eskom has stated that the closures will be "gradual". It is unclear whether Eskom intends to follow the timeline proposed in the Integrated Resource Plan or whether it will decommission the power plants ahead of schedule. Either way, decommissioning of old power plants is unavoidable and takes place for economic, health and safety reasons.
The decommissioning of the plants could lead to the loss of several thousands of jobs in the coal industry. Eskom justifies its decision by saying that it "has had to create space for the renewables by proposing to close some of the coal-fired power stations".
From an economic standpoint, coal is on its way out of the limelight. A global trend is developing among investors in which there is a shift from the coal industry to a more sustainable investment into renewable energy.
Many executives at coal companies are selling their shares to the local population (such as mine workers), giving them a false sense of ownership of a sinking ship. Apart from leaving the local companies with these stranded assets, they escape the obligations towards environmental restoration that must be met at the closure of a plant or mine.
All coal power plants that are operating in SA will eventually need to be closed as they will no longer be economically viable or meet climate-change requirements and health and safety standards.
Many are already violating air-quality regulations.
This development will take place irrespective of whether or not Eskom signs the outstanding IPP contracts.
In the context of climate change and SA’s commitments to its people and the world, an energy transformation towards renewable energy needs to happen sooner rather than later.
Apart from environmental benefits, renewable energy provides more jobs per unit of energy than fossils fuels. Therefore, to provide more jobs in the long term, renewable energy is the way forward. Cosatu and the NUM have called for no renewable energy unless "there is certainty that current jobs will be preserved and new jobs will be created in the renewable sector".
Their concerns are serious — the transition to renewable energy has to be planned thoroughly and transparently.
A campaign for a proper plan of this just transition will provide much better long-term job outcomes than protesting against the IPPs just because Eskom has tried to convey a link between the IPPs and the coal plant closures, which are planned to be decommissioned anyway.
How will the government respond to the concerns about job losses? Does the government have a plan to accommodate Cosatu’s and the NUM’s long-term concerns?
This campaign is the perfect opportunity to begin the conversation. Now is the time to push for and articulate a proper plan for a just transition.
This also provides a great opportunity for academic institutions, civil society and organised labour to work together towards this just transition, which will benefit workers the most in the long term.
• Davids is a member of the Project 90 by 2030 policy and research team. Project 90 by 2030 is a Cape Town-based environmental organisation.
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