RELEVANT INFORMATION CONCERNING THE COAL IPPS – A STUDY BY THE ENERGY RESEARCH CENTRE

A letter from the Life After Coal Campaign to the South African Minister of Public Enterprises, presenting findings from a University of Cape Town Energy Research Centre (ERC) study that argues against the commissioning of two coal-fired independent power producer (IPP) stations, Thabametsi and Khanyisa, due to high costs, increased emissions, and financial risks to Eskom.

• A study by the University of Cape Town’s Energy Research Centre (ERC) indicates that the proposed Thabametsi (557MW) and Khanyisa (306MW) coal-fired power stations would cost South Africa an additional R19.68 billion compared to a least-cost energy system. The report suggests these plants are unnecessary for medium-term electricity demand because wind, solar PV, and flexible gas generation are more economical.
• The commissioning of the coal IPPs is projected to increase greenhouse gas (GHG) emissions by 205.7Mt CO2eq over the 30-year duration of the power purchase agreements. This increase would undermine the government's GHG mitigation efforts, including the Energy Efficiency Strategy to 2050, and would frustrate commitments made under the Paris Agreement.
• The ERC report concludes that building new coal plants during a period of low demand would increase pressure on Eskom, potentially accelerating a 'utility death spiral' and risking the South African economy. The report notes that forcing these IPPs into the build plan leads to the decreased use of existing coal plants, which are cheaper than the new IPPs.
• The Life After Coal Campaign asserts that the Thabametsi and Khanyisa projects are highly risky, noting that their proposed technology results in an emission intensity nearly 60% higher than Eskom’s Medupi and Kusile power stations. The campaign further argues that these projects fail the 'value for money' requirement set out in the 2011 Electricity Regulations on New Generation Capacity.

APA

Centre for Environmental Rights (2018). RELEVANT INFORMATION CONCERNING THE COAL IPPS – A STUDY BY THE ENERGY RESEARCH CENTRE. https://cer.org.za/wp-content/uploads/2018/07/LAC-letter-to-DPE-re-ERC-report-15-June-2016.pdf?x21779

Chicago

Centre for Environmental Rights. RELEVANT INFORMATION CONCERNING THE COAL IPPS – A STUDY BY THE ENERGY RESEARCH CENTRE. 2018. https://cer.org.za/wp-content/uploads/2018/07/LAC-letter-to-DPE-re-ERC-report-15-June-2016.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=RELEVANT INFORMATION CONCERNING THE COAL IPPS – A STUDY BY THE ENERGY RESEARCH CENTRE |date=15 June 2018 |url=https://cer.org.za/wp-content/uploads/2018/07/LAC-letter-to-DPE-re-ERC-report-15-June-2016.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2018relevant, author = {{Centre for Environmental Rights}}, title = {{RELEVANT INFORMATION CONCERNING THE COAL IPPS – A STUDY BY THE ENERGY RESEARCH CENTRE}}, publisher = {Centre for Environmental Rights}, year = {2018}, month = jun, url = {https://cer.org.za/wp-content/uploads/2018/07/LAC-letter-to-DPE-re-ERC-report-15-June-2016.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }