Water Impacts and Externalities of Coal Power

This report by the Centre for Environmental Rights examines the negative environmental and social externalities of coal-fired power generation in South Africa, with a primary focus on water use, pollution, and the associated economic costs. It argues that current energy planning, specifically the Integrated Resource Plan (IRP), fails to internalise these costs, leading to a misrepresentation of the total cost of coal compared to renewable energy alternatives.

• Coal-fired power generation and mining impose significant water demands on South Africa, consuming 2% and 5% of the national water supply respectively. On a regional scale, the impact is more acute; for example, power generation accounts for 37% of water use in the Upper Olifants.
• Water used for electricity generation in South Africa is significantly undervalued, which removes incentives for water efficiency. In 2010, the electricity sector paid approximately R3.40 per cubic meter, while average households paid approximately R8 per cubic meter. Consequently, Eskom's water consumption per unit of energy increased from 1.3 litres per kWh in 2006 to 1.44 litres per kWh in 2016.
• Acid-mine drainage (AMD) is identified as the most severe water impact, polluting surface and groundwater with acid, salts, and metals. This contamination affects aquatic ecosystems, reduces crop yields by interfering with plant metabolism, and threatens human health. The report notes that AMD processes can persist for decades or centuries after mining has ceased.
• The financial burden of treating mine water and managing legacy mining sites is immense. Closing South Africa's approximately 5,906 derelict and ownerless mines, including the long-term treatment of AMD, is estimated to cost up to R60 billion.
• Coal power generation has severe health externalities. Air pollution from Eskom's plants is estimated to cause approximately 2,239 equivalent attributable deaths annually, with a total economic cost of roughly $2.37 billion (R29 billion) per year. Specific plants like Medupi are linked to 364 deaths per year, and Matimba to 262.
• Marginalised communities bear a disproportionate burden of coal's externalities. Residents in coal mining communities face a 70% greater risk of kidney disease, a 64% greater risk of chronic obstructive pulmonary disease (COPD), and are 30% more likely to report hypertension.
• A transition to a decarbonised energy future would significantly reduce water stress and increase employment. By 2050, a decarbonised scenario 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.
• The Draft Integrated Resource Plan (IRP) for Electricity is criticised for failing to evaluate a comprehensive range of externalities, including water-related impacts and treatment costs. This omission results in a misrepresentation of the total costs of coal-fired power, potentially masking the economic viability of renewable energy.

APA

Centre for Environmental Rights (2018). Water Impacts and Externalities of Coal Power. https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Report_LAC.pdf?x21779

Chicago

Centre for Environmental Rights. Water Impacts and Externalities of Coal Power. 2018. https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Report_LAC.pdf?x21779.

Wikipedia

{{cite report |author=Centre for Environmental Rights |title=Water Impacts and Externalities of Coal Power |date=July 2018 |url=https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Report_LAC.pdf?x21779 |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{centreforenvironmentalrights2018water, author = {{Centre for Environmental Rights}}, title = {{Water Impacts and Externalities of Coal Power}}, institution = {Centre for Environmental Rights}, year = {2018}, month = jul, url = {https://cer.org.za/wp-content/uploads/2018/07/Water-Impacts-and-Externalities-Report_LAC.pdf?x21779}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }