COAL BASELOAD INDEPENDENT POWER PRODUCERS – STATUS OF THE POWER PURCHASE AGREEMENTS

The Centre for Environmental Rights (CER), representing the Life After Coal Campaign, is challenging the progression of the Thabametsi and Khanyisa coal-fired power stations. The CER argues that these projects fail the 'value for money' test, would increase greenhouse gas emissions, and are unable to reach commercial close due to missing licenses and pending High Court reviews. The letter requests detailed information on the status of the procurement process and the specific regulatory approvals required before PPAs can be signed.

• The CER argues that the Thabametsi and Khanyisa coal IPPs cannot reach commercial close because they lack necessary licenses and are subject to pending High Court review proceedings regarding environmental authorisations.
• The coal IPPs are estimated to cost South Africa an additional 19.6 billion Rand compared to a least-cost electricity system and would result in greenhouse gas (GHG) emission intensity approximately 24% higher than the current Eskom fleet average and 58% higher than the Medupi and Kusile stations.
• The CER contends that the projects do not meet 'value for money' criteria because South Africa has surplus base supply capacity and does not require new base supply capacity for the foreseeable future.
• The document asserts that the coal IPPs would make it more difficult and expensive for South Africa to meet its Paris Agreement commitments, potentially leading to the stranding of assets like the Kusile power station by 2050.
• There are significant discrepancies in employment figures provided for the projects; for Thabametsi, the Department of Energy estimates 5,163 construction and 9,183 operational jobs, while the NERSA application cites 2,400 construction and 182 operational jobs.
• The CER identifies specific missing authorisations for Thabametsi, including an atmospheric emission licence (AEL), a water use licence (WUL), and a NERSA generation licence.

APA

Centre for Environmental Rights (2018). COAL BASELOAD INDEPENDENT POWER PRODUCERS – STATUS OF THE POWER PURCHASE AGREEMENTS. https://cer.org.za/wp-content/uploads/2018/09/CER-Letter-to-Minister-Radebe_7-Aug-2018.pdf?x21779

Chicago

Centre for Environmental Rights. COAL BASELOAD INDEPENDENT POWER PRODUCERS – STATUS OF THE POWER PURCHASE AGREEMENTS. 2018. https://cer.org.za/wp-content/uploads/2018/09/CER-Letter-to-Minister-Radebe_7-Aug-2018.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=COAL BASELOAD INDEPENDENT POWER PRODUCERS – STATUS OF THE POWER PURCHASE AGREEMENTS |date=7 August 2018 |url=https://cer.org.za/wp-content/uploads/2018/09/CER-Letter-to-Minister-Radebe_7-Aug-2018.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2018coal, author = {{Centre for Environmental Rights}}, title = {{COAL BASELOAD INDEPENDENT POWER PRODUCERS – STATUS OF THE POWER PURCHASE AGREEMENTS}}, publisher = {Centre for Environmental Rights}, year = {2018}, month = aug, url = {https://cer.org.za/wp-content/uploads/2018/09/CER-Letter-to-Minister-Radebe_7-Aug-2018.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }