Water Impacts and Externalities of Coal Power

The report examines the negative externalities of coal power in South Africa, focusing on water consumption, pollution, and health impacts. It argues that the current energy planning (Draft IRP) underestimates the true cost of coal by ignoring water-related externalities, such as acid-mine drainage and the high cost of water treatment. The document suggests that internalising these costs would justify a rapid transition to water-efficient renewable energy, which would also create more jobs and reduce the disproportionate burden on marginalised communities.

• Coal-fired power generation and mining consume a significant portion of South Africa's water resources, with mining accounting for 5% and power generation for 2% nationally. On a regional scale, the impact is more severe, with power generation representing 37% of water use in the Upper Olifants.
• Water used for electricity generation in South Africa is significantly undervalued compared to residential use, 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.
• Acid-mine drainage (AMD) is identified as the most severe water impact, polluting surface and groundwater with acid, salts, and metals. This contamination harms aquatic ecosystems, reduces crop yields, and affects human health.
• The financial burden of treating mine water is substantial and often underestimated. The eMalahleni Water Reclamation Project required an estimated R1.4 billion in investment capital for Phase 1 and Phase 2, and the closure of approximately 5,906 derelict and ownerless mines is estimated to cost up to R60 billion.
• Coal-fired power plants cause significant health externalities. Air pollution from these plants is responsible for approximately 2,239 equivalent attributable deaths and thousands of respiratory disease cases annually, with a total economic cost of approximately $2.37 billion (R29 billion) per year.
• Marginalised communities bear a disproportionate burden of coal's negative 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 decarbonised energy future is projected to be more sustainable and economically beneficial than a coal-reliant base case. By 2050, such a future would require four times less water 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 full range of externalities, including water consumption and treatment costs, which leads to a misrepresentation of the total costs of coal-fired power.

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} }