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

A letter from the Life After Coal Campaign to the Portfolio Committee on Energy regarding a study by the University of Cape Town’s Energy Research Centre (ERC) on the Thabametsi and Khanyisa coal-fired power stations. The campaign argues that these independent power producer (IPP) projects are not 'value for money', would increase system costs and greenhouse gas emissions, and would further destabilize Eskom's financial position.

• A study by the University of Cape Town’s Energy Research Centre (ERC) indicates that the Thabametsi (557MW) and Khanyisa (300MW) coal-fired power stations would cost South Africa an additional R19.68 billion compared to a least-cost energy system. The report suggests these coal IPPs are unnecessary for medium-term electricity demand because wind, solar pv, and flexible gas generation are more economical alternatives.
• The ERC report finds that the coal IPPs would increase greenhouse gas (GHG) emissions by 205.7Mt CO2eq over the 30-year duration of the power purchase agreements. This increase would negate the government's GHG emission mitigation efforts, including the Energy Efficiency Strategy to 2050, and would hinder South Africa's commitments under the Paris Agreement.
• The inclusion of the coal IPPs is projected to increase pressure on Eskom by reducing the output of its existing fleet due to low demand, which could accelerate a 'utility death spiral' and put the South African economy at risk. The ERC report notes that these projects would lead to the decreased use of existing coal plants, which are cheaper than the coal IPPs.
• The Life After Coal Campaign asserts that the Thabametsi and Khanyisa projects are highly risky and harmful, noting they would use large volumes of scarce water and have an emission intensity nearly 60% higher than Eskom’s Medupi and Kusile power stations.

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-PCE-re-ERC-report_15-June-2018.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-PCE-re-ERC-report_15-June-2018.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-PCE-re-ERC-report_15-June-2018.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-PCE-re-ERC-report_15-June-2018.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }