Summary of estimated annual externality costs relating to water resources for Kusile Externalities in coal mining and coal-power generation

This fact sheet by the Centre for Environmental Rights details the estimated annual water-related externality costs for the Kusile coal-fired power station and argues that the Draft Integrated Resource Plan for Electricity (2016) misrepresents the total costs of coal by failing to account for these externalities.

• A study commissioned by Greenpeace Africa estimates that the annual water-related externalities for the Kusile power station range from R0.95 to R1.86 per kWh produced (ZAR 2011), with total annual costs estimated between R30,902 million and R60,337 million.
• Coal mining and power generation consume 3% and 2% of South Africa's water respectively, but the regional impact is more severe; for example, power generation accounts for 37% of water use in the Upper Olifants area.
• The opportunity cost of water used during coal mining for Kusile is estimated between R6 billion and R12 billion annually, based on a requirement of 7.4 million cubic meters of water per year.
• Using dry cooled coal-fired generation with Flue Gas Desulfurisation (FGD) at Kusile instead of concentrated solar power results in an annual foregone revenue of R26.7 billion due to water consumption.
• Acid-mine drainage is identified as the most severe impact on water resources, with damage costs from sulphate pollution at Kusile estimated between R4.5 million and R7.7 million annually. The total cost to close South Africa's approximately 5,906 derelict and ownerless mines, including long-term treatment of acid-mine drainage, could reach R60 billion.
• Water for power generation in South Africa is undervalued; in 2010, the electricity sector paid approximately R3.40 per cubic meter, while the average household paid approximately R8 per cubic meter.
• A decarbonised energy future by 2050 would require four times less water than a coal- and nuclear-heavy Base Case and could create up to 331,000 jobs in the energy sector.
• Negative externalities of coal-power generation disproportionately affect poor and marginalised communities, who face higher health risks, including a 70% greater risk of kidney disease and a 64% greater risk of chronic obstructive pulmonary disease (COPD).

APA

Centre for Environmental Rights (n.d.). Summary of estimated annual externality costs relating to water resources for Kusile Externalities in coal mining and coal-power generation. https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Brochure_LAC.pdf?x21779

Chicago

Centre for Environmental Rights. Summary of estimated annual externality costs relating to water resources for Kusile Externalities in coal mining and coal-power generation. n.d. https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Brochure_LAC.pdf?x21779.

Wikipedia

{{cite report |author=Centre for Environmental Rights |title=Summary of estimated annual externality costs relating to water resources for Kusile Externalities in coal mining and coal-power generation |url=https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Brochure_LAC.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centreforenvironmentalrightsndsummary, author = {{Centre for Environmental Rights}}, title = {{Summary of estimated annual externality costs relating to water resources for Kusile Externalities in coal mining and coal-power generation}}, institution = {Centre for Environmental Rights}, url = {https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Brochure_LAC.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }