ABSA GROUP LIMITED’S ROLE IN FINANCING PROPOSED NEW COAL-FIRED POWER PLANTS

The Centre for Environmental Rights (CER), writing on behalf of the Life After Coal Campaign, urges ABSA Group Limited to withdraw financial support for the proposed Thabametsi and Khanyisa coal-fired power stations. The CER argues that these projects are not 'procured', face significant legal challenges, and contradict the 'least cost' options identified in the 2018 draft Integrated Resource Plan (IRP). The document highlights severe health risks for residents in the Waterberg-Bojanala and Highveld Priority Areas, high greenhouse gas emission intensities, and the potential for these projects to cost South Africa nearly R20 billion more than necessary.

• ABSA Group Limited is identified as a financing contributor for two proposed coal-fired power stations: Thabametsi and Khanyisa, both of which are preferred bidders in the Coal Baseload Independent Power Producer Procurement Programme (CBIPPPP).
• The 2018 draft Integrated Resource Plan (IRP) for Electricity acknowledges that the 'least-cost' option for electricity contains only gas, wind, and solar, and does not include coal. Despite this, the draft IRP provides for 1000MW of coal-to-power in 20232024 from Thabametsi and Khanyisa.
• The CER disputes the claim that the Thabametsi and Khanyisa projects are 'procured', noting that neither has reached commercial or financial close due to outstanding or challenged legal authorisations. Thabametsi lacks an atmospheric emission licence (AEL), a water use licence (WUL), and a NERSA generation licence. Khanyisa lacks a generation licence, and its AEL and WUL are subject to appeal.
• The proposed power plants are located in polluted air quality priority areas: Thabametsi in the Waterberg-Bojanala Priority Area and Khanyisa in the Highveld Priority Area. These areas already exceed ambient air quality standards, contributing to severe health issues such as heart attacks, strokes, asthma, and respiratory infections.
• Thabametsi and Khanyisa are projected to have greenhouse gas (GHG) emission intensities nearly 60% higher than Eskoms Medupi and Kusile power stations, which the CER claims will lead to irreversible climate impacts and hinder South Africa's commitments under the Paris Agreement.
• Including new coal in the 2018 draft IRP is estimated to cost South Africa nearly R20 billion more than necessary, with these costs expected to be passed on to consumers, making electricity more expensive.

APA

Centre for Environmental Rights (2018). ABSA GROUP LIMITED’S ROLE IN FINANCING PROPOSED NEW COAL-FIRED POWER PLANTS. https://cer.org.za/wp-content/uploads/2018/09/CER-letter-to-ABSA_Coal-IPPs-and-the-draft-IRP_12-September-2018.pdf?x21779

Chicago

Centre for Environmental Rights. ABSA GROUP LIMITED’S ROLE IN FINANCING PROPOSED NEW COAL-FIRED POWER PLANTS. 2018. https://cer.org.za/wp-content/uploads/2018/09/CER-letter-to-ABSA_Coal-IPPs-and-the-draft-IRP_12-September-2018.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=ABSA GROUP LIMITED’S ROLE IN FINANCING PROPOSED NEW COAL-FIRED POWER PLANTS |date=12 September 2018 |url=https://cer.org.za/wp-content/uploads/2018/09/CER-letter-to-ABSA_Coal-IPPs-and-the-draft-IRP_12-September-2018.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2018absa, author = {{Centre for Environmental Rights}}, title = {{ABSA GROUP LIMITED’S ROLE IN FINANCING PROPOSED NEW COAL-FIRED POWER PLANTS}}, publisher = {Centre for Environmental Rights}, year = {2018}, month = sep, url = {https://cer.org.za/wp-content/uploads/2018/09/CER-letter-to-ABSA_Coal-IPPs-and-the-draft-IRP_12-September-2018.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }