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South Africa’s govt and nuclear power utility Eskom undermine renewable energy development

Nuclear and coal lobbies threaten to scupper renewables in South Africa The Conversation,  Hartmut Winkler
Professor of Physics, University of Johannesburg June 27, 2017 South African power utility Eskom recently repeated that it will not conclude supply contracts with the developers of new renewable energy power stations. These developers were selected under a programme to facilitate private sector involvement in the building of medium-sized renewable energy power stations.

The programme has won plaudits for its success in facilitating the establishment of multiple solar and wind farms in record time. But Eskom is once again stalling.

The power utility’s stand threatens the viability of the entire renewable energy sector in the country. It’s hostility also defies logic given that the whole world is embracing renewable energy as key to a clean energy future and combating climate change.

So what lies behind the opposition?

The answer lies in the fact that two powerful lobbies are at work in South Africa. One is pro-coal, the other pro-nuclear. This has made the success of the renewable energy projects a target for attacks from interested parties in both. Disrupting the renewable energy sector would ensure that the coal sector remains dominant. And that, over time, it is gradually displaced by nuclear.

The lobby groups attached to coal and nuclear appear to have had powerful allies on the state utility’s board. There is mounting evidence that they have been furthering the interests of a group linked to the Gupta family. It in turn has been accused of capturing state entities to further its own ends, as well as those of President Jacob Zuma, his family and allies.

t has also been widely argued that the massively expensive proposed nuclear build is being driven by the same interest groups.

The battle over renewables is therefore closely linked to a wider political confrontation over control of key aspects of the South African economy.

Eskom’s flawed argument

The renewables dispute centres on the state utility’s refusal to endorse 1121 MW of new renewable energy….

The Public Enterprises Minister Lynne Brown has been disingenuous in citing cost as a reason to stop the last phase of renewables. The higher costs she recently quoted were presumably those associated with the first round of renewable energy projects. These contracts were concluded in 2012 and prices for renewables have come down considerably since.

For its part Eskom has pointed to the oversupply of electricity as the reason for its objection. But elsewhere it has trumpeted the need for more nuclear power. It can’t have it both ways.

Powerful forces at play

June 28, 2017 - Posted by Christina Macpherson | politics, renewable, secrets,lies and civil liberties, South Africa