Energy in South Africa
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South Africa was the world's sixth hard coal producer in 2009. Hard coal production was 1,620 TWh in 2009 and total energy production 1,995 TWh in 2008.
|Mtoe = 11.63 TWh, Prim. energy includes energy losses|
South Africa was the sixth top hard coal producer in 2009: 247 Mt hard coal, below Australia 335 Mt and Indonesia 263 Mt and above Russia 229 Mt. South Africa was the fifth top hard coal net exporter in 2009: 67 Mt hard coal of the world total hard coal export 836 Mt.
In 2009 247 Mt hard coal production is 247 Mt*0.564 toe/Mt*11.630 TWh/toe = 1620 TWh and export 67 Mt*0.564 toe/Mt*11.630 TWh/toe = 439 TWh.
Coal and environment
Coal production and use creates in South Africa Coal combustion wastes (CCW), coal mine wastes (AMD) and toxic coal land fires. Coal combustion wastes (CCW), contain toxic substances like arsenic, cadmium, chromium and lead. Hundreds of South African old coal mines are filled with sulphate salts, heavy metals and carcinogenic substances like benzene and toluene. This AMD damages wildlife and spreads illness and disease. According to Greenpeace most shockingly is eMalahleni 'place of coal', Mpumalanga province, surrounded by 22 collieries and steel, vanadium and manganese plants. One of the biggest old mines is the Transvaal and Delagoa Bay (T&DB) mine, closed in 1953. 60 km downstream from Emalahleni AMD leaked into the water supply in 2006 and 2007 killing thousands of fish, crocodiles and freshwater turtles and poisoning the water used by communities. Coal fires continue in the disused mines.
In 2008 electricity was produced 241 TWh with coal. In 2008 electricity production + imports – exports – losses was 232 TWh.
The government owned national power utility Eskom dominates the country's electricity sector. With 27 operational power plants generating over 95% of the country's electricity and over 40% of all electricity on the African continent making it one of the ten largest power utilities in the world. However government's inability to keep Eskom's generating capacity up with economic and population growth due to a lack of investment by government has created a large energy shortage and led to an energy crisis in late 2007. This has forced the company to implement loadshedding in specific areas of the country at certain times to reduce pressure on the national grid and initiate an ambitious program to increase energy production. This has led to speculation by the national newspaper, the Mail and Guardian, that the country might face a complete grid failure.
Prior to the establishment of Eskom the provision of electricity was dominated by municipalities and private companies. The city of Kimberley was the first user of public electricity in South Africa when it installed electric streetlights run off a coal fired power plant in 1882 to reduce crime at night.:5 The first central power station and distribution system in South Africa consisting of a 150 kW generator with two boilers and located at Cape Town Harbour was completed in 1891 to supply power to government buildings in the nearby city. In 1893 the town (now neighbourhood) of Wynberg in Cape Town opened a power station to provide power to a local tram system and public streetlights. This was followed by the first municipal power station built by the City of Cape Town in 1895 with the construction of the Graaff Electric Lighting Works to power 775 streetlights.
Eskom was founded by the Electricity Act of 1922 which allowed for the establishment of a government owned non-profit company to provide electricity. In 1948 Eskom bought out the Victoria Falls and Transvaal Power Company with government support for £14.5 million (roughly equivalent to £2.55 billion in 2017) to become South Africa's primary electricity provider. Eskom dropped its non-profit mandate in the late 1970s and government control over the company was expanded in 1998 with the passing of the Eskom Amendment Act.:5-8
The portion of renewable energy as a percentage of final energy consumption in 2012 was 16.9%. Most of that was from the burning of traditional biofuels for heating.
In terms of share of GDP in 2012, South Africa was the fourth largest investor in renewable power in the world after Uruguay, Mauritius and Costa Rica. That rate of investment is expected to continue. Renewable energy will play a larger role in future.
South Africa's commitment to renewable energy lags behind that of China, India, Brazil, and Russia. South Africa receives more than twice as much sunshine than Germany, where over 15 percent of the national electricity supply comes from renewable sources.
"South Africa's National Energy Regulator (NERSA) announced 31 March 2009 the introduction of a system of feed-in tariffs designed to produce 10 TWh of electricity per year by 2013. The feed-in tariffs announced were substantially higher than those in NERSA's original proposal. The tariffs, differentiated by technology, will be paid for a period of 20 years.
NERSA said in its release that the tariffs were based, as in most European countries, on the cost of generation plus a reasonable profit. The tariffs for wind energy and concentrating solar power are among the most attractive worldwide.
The tariff for wind energy, 1.25 ZAR/kWh (€0.104/kWh) is greater than that offered in Germany and more than that proposed in Ontario, Canada.
The tariff for concentrating solar, 2.10 ZAR/kWh, is less than that in Spain, but offers great promise in the bright sunlight of South Africa. NERSA's revised program followed extensive public consultation.
Stefan Gsänger, Secretary General of the World Wind Energy Association said in a release that "South Africa is the first African country to introduce a feed-in tariff for wind energy. Many small and big investors will now be able to contribute to the take-off of the wind industry in the country. Such decentralised investment will enable South Africa to overcome its current energy crisis. It will also help many South African communities to invest in wind farms and generate electricity, new jobs and new income. We are especially pleased as this decision comes shortly after the first North American feed-in law has been proposed by the Government of the Canadian Province of Ontario".
However, the feed-in tariff was abandoned before being promulgated in favor of a competitive bidding process launched on 3 August 2011. Under this bidding process, the South African government plans to procure 3,750MW of renewable energy: 1,850MW of onshore wind, 1,450MW of solar PV, 200MW of CSP, 75MW of small hydro, 25MW of landfill gas, 12.5MW of biogas, 12.5MW of biomass, and 100MW of small projects. The bidding process comprises two steps:
- Qualification phase. Projects are assessed based on structure of the project, legal, land acquisition and use, financial, environmental consent, technical, economic development and bid guarantee
- Evaluation phase. Compliant bids are then evaluated based on: (1) price relative to a ceiling provided in bid documentation, accounting for 70% of the decision, and (2) economic development, accounting for 30% of the decision.
The first round of bids was due on 4 November 2011. The SA government is expected to announce preferred bidders before COP17 in December. PPA's are expected to be in place by June 2012. Projects should be commissioned by June 2014, except CSP projects which are expected by June 2015.
The average indexed bid prices (2012) for the supply of energy in the first bid window for the various renewable energy technologies were:
- Concentrating solar power (CSP): R2,69 per kWh
- Solar photo-voltaic (PV): R2,76 per kWh
- Wind: R1,14 per kWh
The average indexed bid prices (2012) for the supply of energy in the second bid window
- Concentrating solar power (CSP): R2,51 per kWh
- Solar photo-voltaic (PV): R1,65 per kWh
- Wind: R0,90 per kWh
- Small hydro: R1,03 per kWh
The average indexed bid prices (2013) for the supply of energy in the third bid window
- Concentrating solar power (CSP): R1,64 per kWh
- Solar photo-voltaic (PV): R0,99 per kWh
- Wind: R0,74 per kWh
- Landfill gas: R0,94 per kWh
- Biomass: R1,39 per kWh
Eskom claims a standard electricity production price (2012)of R0.31 per kWh (Eskom-predominately Coal and Nuclear), however energy generated from Eskom's new coal power plants have been estimated to be R0.97 per kWh.
Many abandoned mines have been burning since the 1940s. Persistent and toxic mine chemical leakages pollute waterways and kill animals. In 2006, about 80% of South Africa's coal exports was in Europe.
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