THE LIFE AFTER COAL CAMPAIGN - CONCERNS AND RISKS RELATING TO THE PROPOSED INDEPENDENT POWER PRODUCER (IPP) COAL-FIRED POWER STATION PROJECTS UNDER BID WINDOW 1 OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME

A statement from the Life After Coal Campaign to the South African Minister of Finance outlining financial, legal, and environmental risks associated with two proposed coal-fired power stations under the Coal Baseload Independent Power Producer Procurement Programme (CBIPPP).

• The Life After Coal Campaign identifies two preferred bidders for coal-fired power stations under the CBIPPP: Thabametsi Power Company (Pty) Ltd, proposing a plant in Lephalale, Limpopo, and ACWA Power Khanyisa Thermal Power Station RF (Pty) Ltd, proposing a plant in eMalahleni, Mpumalanga.
• The proposed coal IPPs are reportedly unable to reach commercial and financial close due to pending High Court review proceedings regarding environmental authorisations and missing essential permits. Thabametsi lacks an atmospheric emission licence (AEL), a water use licence (WUL), and a NERSA generation licence. Khanyisa lacks a NERSA generation licence and has a suspended WUL.
• The Campaign argues that the projects fail the 'value for money' criteria required by the New Generation Regulations and the RFP, asserting they provide no net benefit to Eskom or the government and are not in the best interests of the South African people.
• The Department of Energy (DoE) has requested indemnities from the National Treasury for the coal IPPs valued at R25.2 billion, with a potential maximum of R225.2 billion.
• Citing a report from the University of Cape Town’s Energy Research Centre (ERC), the Campaign claims the coal IPPs would cost South Africa an additional R20 billion to R23 billion compared to a least-cost electricity system and increase greenhouse gas emissions by 205.7Mt CO2eq over 30 years.
• The projects are described as a risk to Eskom's financial stability, potentially accelerating a 'utility death spiral' by forcing the use of expensive new capacity over cheaper existing plants during a period of low demand.
• The proposed plants are located in declared air quality priority areas—the Highveld Priority Area and the Waterberg-Bojanala Priority Area—where air quality standards are already exceeded and water scarcity is a major concern.

APA

Centre for Environmental Rights (2018). THE LIFE AFTER COAL CAMPAIGN - CONCERNS AND RISKS RELATING TO THE PROPOSED INDEPENDENT POWER PRODUCER (IPP) COAL-FIRED POWER STATION PROJECTS UNDER BID WINDOW 1 OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME. https://cer.org.za/wp-content/uploads/2018/12/LAC-Letter-to-Minister-of-Finance-19-11-18.DOCX.pdf?x21779

Chicago

Centre for Environmental Rights. THE LIFE AFTER COAL CAMPAIGN - CONCERNS AND RISKS RELATING TO THE PROPOSED INDEPENDENT POWER PRODUCER (IPP) COAL-FIRED POWER STATION PROJECTS UNDER BID WINDOW 1 OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME. 2018. https://cer.org.za/wp-content/uploads/2018/12/LAC-Letter-to-Minister-of-Finance-19-11-18.DOCX.pdf?x21779.

Wikipedia

{{cite press release |author=Centre for Environmental Rights |title=THE LIFE AFTER COAL CAMPAIGN - CONCERNS AND RISKS RELATING TO THE PROPOSED INDEPENDENT POWER PRODUCER (IPP) COAL-FIRED POWER STATION PROJECTS UNDER BID WINDOW 1 OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME |date=19 November 2018 |url=https://cer.org.za/wp-content/uploads/2018/12/LAC-Letter-to-Minister-of-Finance-19-11-18.DOCX.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{centreforenvironmentalrights2018life, author = {{Centre for Environmental Rights}}, title = {{THE LIFE AFTER COAL CAMPAIGN - CONCERNS AND RISKS RELATING TO THE PROPOSED INDEPENDENT POWER PRODUCER (IPP) COAL-FIRED POWER STATION PROJECTS UNDER BID WINDOW 1 OF THE COAL BASELOAD IPP PROCUREMENT PROGRAMME}}, publisher = {Centre for Environmental Rights}, year = {2018}, month = nov, url = {https://cer.org.za/wp-content/uploads/2018/12/LAC-Letter-to-Minister-of-Finance-19-11-18.DOCX.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }