This third article from the interview by Chris Yelland with André de Ruyter on 15 April 2020 covers Eskom’s response to climate change and the need for a just energy transition in South Africa towards a greener future.
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See here for the first and the second articles

With Eskom being the country’s largest emitter of CO2 through the burning of coal for power generation, what is Eskom doing to reduce its carbon footprint, what are the key ingredients for unlocking a just energy transition in South Africa, and what role should Eskom be playing in this transition?

I must stress that Eskom fully recognises the importance of climate change and the fact that it has a negative impact, not only on the world, but in particular on South Africa as well.

South Africa is a signatory to the Paris Agreement and, therefore, as a major emitter of greenhouse gasses, we need to contribute to global efforts to address climate change. But that implies there is going to be a very wrenching adjustment from an economy built on cheap coal and cheap energy to an economy that is far more resilient and far less reliant on carbon.

The structural underpinnings of our economy have not changed yet and we are not very well prepared for the energy transition that is underway globally. That does not mean we can resist the energy transition. I think we need to accelerate very quickly on this long road in order to catch up and take advantage of the latest developments in technology.

If you look at the cost curves for renewable energy, compared to those for fossil-based energy, it is clear the technology developments and affordability of renewable energy have been such that you cannot afford to ignore this. It is beyond any doubt that wind and solar energy will play a key role in our energy portfolio and mix going forward. But that does not mean we will be able to back out of coal overnight. 

This is going to be a long passage as we wind down our reliance on coal and, unfortunately, I think we will be a major coal consumer and hence a major emitter of greenhouse gasses and associated pollutants for some time.

We are now on the verge of retiring some of our older coal-fired power stations. This affords us the opportunity to consider repurposing them to natural gas and to use the vacant land around those power stations, where we can rehabilitate open-cast mines for solar or wind power generation.

These properties are now owned by Eskom to use and you may be aware that Eskom recently issued a request for expressions of interest and proposals for the repurposing of decommissioned coal-fired power stations, with a closing date of 10 June 2020.

Some may see old coal-fired power stations that have reached the end of their economic life, and are heavy emitters of carbon and also other pollutants, as a liability. We see these as potential assets and exciting opportunities that can be used to create a just transition.

These opportunities provide a future for communities that have helped develop this country and allowed us to benefit from mining and using coal for low-cost electricity generation for the last 60 years. We cannot just leave them in the lurch, leaving ghost towns and communities behind as festering political, social and economic wounds.

So, the call for expressions of interest and proposals on our website is an indication of the seriousness with which we take this repurposing. We believe that, if we do this right, we can also enable solutions to the significant decommissioning costs we would have to incur.

By extending the life of these power stations we can enable a just social transition and a just energy transition. At the same time, this will allow some of the private entities and communities that have expressed an interest in investing in these repurposed power stations to participate with us in public-private partnerships (PPPs).

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The heads of South Africa’s wind and solar industry bodies urged Mineral Resources and Energy Minister Gwede Mantashe on Tuesday to publish, without delay, the Ministerial determinations required to unlock the procurement of much-needed electricity capacity in line with the Integrated Resource Plan (IRP 2019), promulgated in October.

Addressing members of the National Press Club in Pretoria, South African Wind Energy Association (SAWEA) CEO Ntombifuthi Ntuli and South African Photovoltaic Industry Association (SAPVIA) chairperson Wido Schnabel reported that their members had projects that could be implemented on an accelerated basis and in line with the Department of Mineral Resources and Energy’s (DMRE’s) recent call for proposals that could be grid-connected in the “shortest time and at the least possible cost”.

The call was made in a request for information (RFI), the deadline for which is January 31, for supply and demand options to close what is at least a 3 000 MW capacity gap, but which a recent Council for Scientific and Industrial Research (CSIR) report calculates could be as large as 8 000 MW. The CSIR also warns that the country’s energy shortfall, which was above 1 350 GWh in 2019 (the country’s worst-ever load-shedding year), could grow to nearly 2 000 GWh this year and peak at about 4 600 GWh in 2022.

A full month as been allocated for the evaluation of the RFI responses, after which an emergency procurement process is expected to be initiated.

SAWEA and SAPVIA believe that the RFI process should not hold back the implementation of the IRP 2019, however, and that the fifth bidding round of the Renewable Energy Independent Power Producer Procurement Programme (REIPPPP) should be launched in parallel, given both the crisis and that previous bidding rounds have typically required between 18 and 24 months to complete.

Lead times could be compressed in the next bidding round, owing to the fact that some 90 projects had already been identified in 2015 under the ironically named ‘expedited round’ – that round eventually expired after years of delay, precipitated by Eskom’s refusals to enter into new power purchase agreements (PPAs) with independent power producers (IPPs).

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The South African Wind Energy Association (SAWEA) has called for the immediate release of available wind power into the national grid, as the country continues to face daily load-shedding.

After days of implementing Stage 1 to Stage 4 power cuts, State-owned Eskom on Monday evening implemented unprecedented Stage 6 power cuts after the heavy rainfall in some areas of the country exacerbated the already constrained power supply situation.

Eskom explained in a statement that the Stage 6 load-shedding was declared as a result of failed units at the Medupi power station, flooding at the Kriel mine and flooding at the Camden power station.

The power utility late on Monday scaled back to Stage 4 load-shedding and, on Tuesday, said that at 05:43 breakdowns were at 15 200 MW. It was working to reduce unplanned breakdowns to below 9 500 MW and to stop load-shedding by next week.

It pointed out that the probability for load-shedding remained high for the remainder of this week.

The power cuts have resulted in a number of mining companies, including diamond miner Petra Diamonds and gold miner Harmony Gold, halting operations following requests by Eskom and over safety concerns for mine employees working underground.

President Cyril Ramaphosa on Monday acknowledged the “devastating” impact of load-shedding on the economy. Economists have warned that the latest round of load-shedding may push South Africa into a recession.

In light of the ongoing electricity supply constraints, which is unlikely to be resolved soon, the South African Photovoltaic Industry Association on Monday called for government to enable a greater contribution from small-scale embedded generation.

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Wind turbine tower sections for the 140MW Kangnas Wind Farm, one of the Renewable Energy Industry Power Producer Procurement Programmes (REI4Ps) giant Bid Window 4 projects, are being manufactured locally, on Cape Town’s West Coast, in Atlantis.  This signals the recovery of the Special Economic Zone (SEZ) for Green Technologies, which according to Green Cape, has already attracted R680 million in green technology investments and has created over 300 jobs. It is expected that the zone will attract a further R3.7 billion of investment by renewable energy and other manufacturers, and nearly 3,000 jobs are expected to be created by 2030 if these investments are realised.
Manufacturing industries, in particular, stand to benefit from wind farms that are currently being constructed around the country.  Two of these large power generating plants, will be receiving their turbine tower sections from GRI, a Spanish wind tower manufacturer, which has invested R475 million to date, and was one of the first to see the benefits of locating in the Atlantis SEZ.  Even prior to designation of the SEZ, GRI had made the most of the City of Cape Town's available infrastructure and rapid land release and approvals process to land them on their chosen ground. 
GRI weathered the storm of the REI4P delays and were able to ramp up to full operations again after confirming contracts in BW4, which include Kangnas Wind Farm and Perdekraal East Wind Farm.  

“GRI's South African wind tower company is 25% owned by local Black shareholders, whilst their 250 or so employees have benefited from skills transfer, some seeing training and experience in Spain and USA, and bringing their skills back to the community,” explained Francis Jackson, SEZ Project Executive, GreenCape. 
The Atlantis Green Technology SEZ was a deliberate effort to create manufacturing, broadly in the green economy, and with specific opportunities in renewables. “Kangnas Wind Farm is the first REI4P power producer to receive towers manufactured by GRI, following the industry’s two year impasse, with the manufacturer’s full capacity dedicated to these projects,” explain Manie Kotze, Construction Project Manager for Kangnas Wind Farm.
Kangnas Wind Farm is situated in the Nama Khoi Municipal area, in the Northern Cape.  This Province is the recipient of the majority of IPP’s from the latest bid window, green lighted almost a year ago.

Given the Renewable Energy Industry’s potential and willingness to contribute to national socio-economic development, the industry is taking proactive measures to ensure coordinated efforts result in greater local benefit.

Speaking at a recent energy forum, Energy Minister, Jeff Radebe, signalled government’s intention that the socio-economic and enterprise development spend of the Renewable Energy Independent Power Producer Procurement Programme’s (REI4P) should be managed in a more coordinated way.

“The Wind industry welcomes this approach and has begun a proactive process to develop a vision for the achievement of increased socio-economic transformation as well as improved co-operation and collaboration on Economic Development spend,” explained Brenda Martin, CEO of the South African Wind Energy Association (SAWEA).

SAWEA’s recent ‘From Co-operation to Collaboration Roundtable’, convened to coincide with Global Wind Day, was organised by the Association’s ‘Wind for Communities’ working group.  The roundtable explored how Economic Development practitioners could increase provincial collaboration, the differences between co-operation and collaboration, and when neither were appropriate or necessary. 
By bringing together practitioners that are actively engaged in post-construction Economic Development strategic planning and implementation, the event was able to focus directly on opportunities for greater collaboration, for the benefit of beneficiary communities.
“Increased collaboration, together with a stronger culture of knowledge-sharing among practitioners can result in more effective implementation while cutting down on duplication and resulting in more visible collective results, to the greater benefit of local communities” said Martin.
The 5th bid window (BW5), which will be launched later this year, is also expected to include increased requirements for participation by women- and youth-owned businesses, an important facet of achieving socio-economic transformation.
SA WIND INDUSTRY CONTRIBUTES TO TRANSFORMATION THROUGH CO-ORDINATED EFFORT
A total of twelve wind and solar power plants were represented at the roundtable, which was organised on the basis that Economic Development practitioners make a critical contribution through the local economic development spend associated with 20-year power purchase agreements (PPAs) of IPPs.  
Kouga Wind Farm’s ED manager Trevor Arosi said, “There is a high concentration of wind farms in the Eastern Cape, so I appreciated the opportunity to participate in a discussion aimed at increasing consolidation of strategies to ensure the most efficient use of resources and the most impactful outcome for the local beneficiary communities.”
Whilst is was agreed that much more can be achieved through accountable strategic partnership initiatives that reduce duplication while harnessing opportunities for value-add, an appreciation for local contextual difference, and the importance of discerning when collaboration is not appropriate was also acknowledged. 
The 20-year PPA allows for a long-term development outlook, which can result in inter-generational benefit that is advanced by improved practitioner knowledge-sharing, transparency and accountability.  
As an Industry Association operating within a developing economy, SAWEA’s role includes facilitation of enhanced developmental policy implementation. “The roundtable on June 15th, was an important first milestone on what promises to be a rich journey of improved co-operation and collaboration between ED practitioners – focused on achieving greater local community benefit,” concluded Martin.
SAWEA’s six working groups, each focus on selected priority themes for the industry and were established in order to ensure that member expertise is directly applied in SAWEA’s work to influence policy development, technical solutions, socio-economic development knowledge production and operational excellence.
Issued by: Tina Meier/ TM Communications / socialmedia@tmcommunications.co.za
Issued for: South African Wind Energy Association (SAWEA)
www.sawea.org.za 
Issue date: June 2018

The UK yesterday hit a milestone of running without coal power for three days in a row – the longest coal-free period in the country since the 1880s.

It started on Saturday morning and ended on Tuesday, according to National Grid, hitting a total of 72 hours and 10 minutes.

Without coal on the grid, 33 per cent of the UK’s electricity came from gas, 20 per cent from windpower and 24 per cent from nuclear.

Then there was 8 per cent from imports from France and The Netherlands, 7 per cent from solar, 6 per cent from biomass, 1 per cent from hydropower and 1 per cent from pumped storage.

Coal accounted for less than 7 per cent of Britain’s energy mix last year and the government is to phase-out the fossil fuel completely by 2025.

Hannah Martin, Head of Energy at Greenpeace UK, said in response to the coal-free days: “As coal power is phased out to prevent environmental disaster, and nuclear power phases itself out through economic disaster, the government would be wise to support the cleanest and cheapest energy sources, onshore wind and solar.”

"Offshore wind has proven to be popular and able to provide affordable clean energy, as well as skilled jobs and fair bills. As we have more and more days without coal, we need to make sure it is replaced with the renewable technologies of the future."

UK power generator Drax may be able to end its coal-fired power operations ahead of the government’s 2025 deadline.

The company’s CEO believes Drax’s biomass and gas-fired power operations, coupled with battery storage, are capable of replacing any coal closures ahead of time.

“We’re exploring options for repowering our remaining coal units to use sustainable biomass and gas which we believe could help us to become coal free even earlier than the 2025 deadline,” Drax chief executive Will Gardiner said. 

Drax has converted three of its six power plant units to burn wood pellets and plans to convert a fourth unit to biomass later this year. Drax said it could replace the remaining two units with gas plants and up to 200 MW of battery storage. 

You can track the live mix of renewables, fossil fuels or imports used in Britain's energy mix through the University of Durham's website at www.durham.ac.uk/dei/dashboard

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South Africa’s five largest renewable energy projects, measured in terms of investment, are all multi-billion rand wind farms that contribute a collective 645.71 megawatt (MW) to the grid. 
Together, SA's renewable energy projects contribute 3,773 MW, compared to the 43,485MW currently delivered by fossil fuels. This is according to information released by the the Independent Power Producer Procurement Programme to Parliament in March.

The existing investment in South Africa's sustainable energy projects totals R142 billion, almost five times what SA paid for the 2010 FIFA World Cup.

And government this week signed contracts worth an additional R56bn, expected to add 2,300 MW of electricity to the national grid over the next five years, with 27 independent renewable energy power producers.

The average time for construction to completion of renewable energy projects is 1.9 years. 

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Solar panels and wind turbines have sprung up like wild flowers across South Africa and by 2030 will be clustered into renewable energy zones known as REDZes.

In the first eight of these zones‚ the renewable industry has already revitalised towns. A solar valley developed in the Northern Cape has brought billions of rand in investment‚ jobs‚ expertise and Spanish food to the province.

South Africa’s renewable energy programme has been constrained by getting power into Eskom’s grid. But now five electricity grid corridors will be created to expand access.

Department of Environmental Affairs spokesman Albi Modise said: “The identification of REDZes allows for the pro-active funding of grid expansion.”

New research by Meridian Economics recommended that Eskom decommission older coal-fired power stations. This would not harm the power supply‚ it said.

By 2030 eight coal-fired plants are expected to close and applications for renewable energy projects have flooded into the Department of Environmental Affairs.

Paul Lochner‚ manager of the CSIR’s environmental management services‚ said areas with the greatest wind and solar resources‚ highest need for socio economic development and least environmental sensitivity — that could be connected to the grid — were identified for the first eight REDZes.

The first round of identifying REDZes‚ from 2013 to 2015‚ was based on available data and involved expert and community consultation.

Abulele Adams‚ an environmental assessment practitioner at the CSIR‚ said: “In 2014 we engaged municipalities and the public in every area that would be affected during a travelling roadshow‚ and got mixed responses.

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LM Wind Power announces the signing of an agreement to develop a 71.8 meter blade for Chinese offshore leader Envision. The deal is followed by a supply agreement from LM Wind Power's Jiangyin factory in Jiangsu, China that will require the company to expand the manufacturing facility by 50%.

The new 71.8 meter blade will equip Envision's new 4.5 MW platform and is expected to be installed in H1 2018. The new large-rotor turbine is designed to effectively serve the Wind Class II and III areas in north China offshore.

Dick Xie, Envision Offshore Business Head, said: "Envision has a strong ambition to continue to lead the development of the Chinese offshore wind market and we are pleased to engage in this strategic partnership with LM Wind Power. Our collaboration will ensure high-performing, reliable blades on this new and powerful platform that will contribute to reducing the Levelized Cost of Energy offshore."

LM Wind Power Vice President Offshore, Alexis Crama, added: "The Chinese offshore wind market is expected to grow on average by 40% annually for the next five years. LM Wind Power has been part of this journey since the very beginning and we are investing significantly in new product development and technologies for the Chinese market, including manufacturing capacity and people. Together with industry leaders like Envision, we look forward to further accelerating the development of a domestic offshore industry, helping China meet its growing demands for clean, renewable and affordable energy." 

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