UPDATE ON THE PREFERRED BIDDERS UNDER THE FIRST BID WINDOW OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME

The Centre for Environmental Rights (CER) is challenging the viability of the Thabametsi and Khanyisa coal-fired power projects, arguing that they cannot reach commercial or financial close due to outstanding licenses, pending High Court reviews of environmental authorisations, and a lack of 'value for money' assessments. CER highlights that Eskom has not approved the signing of the power purchase agreements (PPAs) and notes that the draft IRP 2018 suggests new coal-fired power is not part of a least-cost electricity plan.

• The Thabametsi project faces multiple legal and regulatory hurdles, including a High Court review of its environmental authorisation (EA) instituted in March 2018, and the absence of an atmospheric emission licence (AEL), a water use licence (WUL), and a NERSA licence.
• The Khanyisa project is subject to pending High Court review proceedings regarding its environmental authorisation, which CER claims was issued without a required comprehensive climate change impact assessment. Additionally, its water use licence (WUL) is currently suspended following an appeal lodged on 8 August 2018.
• Eskom has not approved the signing of the coal IPP agreements and has not made allowances for these projects in its production plans or price applications, stating that all future IPP programmes are on hold pending the finalisation of the Integrated Resource Plan (IRP).
• Eskom is awaiting a "value for money" assessment, required by regulation 9 of the Electricity Regulations for New Generation Capacity, before deciding whether to sign the power purchase agreements (PPAs).
• Research from the University of Cape Town’s Energy Research Centre (ERC) indicates that the two coal IPPs would add costs of R20 billion (with the Minister of Energy suggesting R23 billion) and could accelerate a “utility death spiral” for Eskom due to low demand.
• The draft IRP 2018 indicates that new coal-fired power is not part of a least-cost electricity plan, which CER argues makes a final IRP including these projects susceptible to legal challenges based on the Constitution of the Republic of South Africa, 1996.

APA

Centre for Environmental Rights (2018). UPDATE ON THE PREFERRED BIDDERS UNDER THE FIRST BID WINDOW OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME. https://cer.org.za/wp-content/uploads/2018/11/CER-to-IPP-office-16.11.18.pdf?x21779

Chicago

Centre for Environmental Rights. UPDATE ON THE PREFERRED BIDDERS UNDER THE FIRST BID WINDOW OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME. 2018. https://cer.org.za/wp-content/uploads/2018/11/CER-to-IPP-office-16.11.18.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=UPDATE ON THE PREFERRED BIDDERS UNDER THE FIRST BID WINDOW OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME |date=16 November 2018 |url=https://cer.org.za/wp-content/uploads/2018/11/CER-to-IPP-office-16.11.18.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2018update, author = {{Centre for Environmental Rights}}, title = {{UPDATE ON THE PREFERRED BIDDERS UNDER THE FIRST BID WINDOW OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME}}, publisher = {Centre for Environmental Rights}, year = {2018}, month = nov, url = {https://cer.org.za/wp-content/uploads/2018/11/CER-to-IPP-office-16.11.18.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }