‘Eskom’s new just energy transition office assessing green finance options for repurposing of old coal stations’ 25 June 2020

Eskom CEO Andre de Ruyter reports that the State-owned utility’s newly created just energy transition (JET) project office is evaluating green financing options that could help accelerate the deployment of renewables and facilitate the repurposing of its older coal plants in ways that improve Eskom’s sustainability and sustain livelihoods in coal mining towns. In a presentation delivered during a South African National Energy Association webinar on Thursday, De Ruyter argued that the JET represented a major opportunity for both Eskom and South Africa and that the office had, thus, been established to ensure that the issue received dedicated effort and attention.

…Besides the green transaction, the JET project office would support Eskom’s own decarbonisation objectives, while working on strategies for providing socioeconomic support to those workers and communities that could be left vulnerable by the transition from coal to renewables. In late March, Eskom issued an expression of interest (EoI) document calling on respondents to outline business cases for the repurposing of the Komati, Hendrina and Grootvlei power stations, which are scheduled to cease producing electricity between 2022 and 2026.

…They would also improve its environmental performance and enable it to reskill its workers for new sustainable activities. For South Africa, the deal could bolster foreign direct investment, create sustainable and alternative livelihoods for coal workers, improve community health outcomes and enable the country to meet its climate commitments…He also stressed the need for adopting a holistic approach to the transition, arguing that if pursued in isolation there could be negative socioeconomic impacts. “We have got to take account of the fact that we’ve got high unemployment in South Africa, we’ve got communities and businesses invested in coal that have to be brought along on this journey in a way that does not cause significant hardship.”