Entries by

Court orders government to clean up air in coal belt

A South African court on Friday upheld a complaint by activists that poor air quality in the coal belt is a breach of constitutional rights, giving the environment minister a year to enforce a clean air plan. South Africa’s coal belt, east of the capital Pretoria and main city Johannesburg is home to an estimated 3.6-million people, as well as a dozen Eskom coal-fired power stations and some Sasol petrochemicals plants.
March 18, 2022 by

Carbon prices decline despite energy costs increasing owing to war on Ukraine – Fitch Solutions

Carbon prices have tumbled in the wake of Russia’s invasion of Ukraine, decoupling from the broader energy complex, despite the steep rise in gas prices, which should have incentivised gas-to-coal switching, raising emissions and so driving up the demand for European emissions allowances (EUAs), says research organisation Fitch Solutions. From a peak of €96/t carbon dioxide-equivalent (CO2e) on February 8, to their trough at €58/t CO2e on March 7, EUAs lost about 40% of their value, the agency states.
March 18, 2022 by

Economic recovery from Covid-19 threatened by geopolitical tension surrounding Ukraine

Signs of a slow recovery in manufacturing so far this year – which were in part being driven by improvements in production in Europe and Asia – may now be threatened by escalating geopolitical tension in Europe on the back of the Russia-Ukraine conflict and a simultaneous resurgence of the Covid-19 virus in China, research and consulting firm Frost & Sullivan consulting analyst Nomvo Kasolo said on March 17. “However, pockets of opportunity exist for markets that can fill the gaps in exports from Russia,” she noted.
March 18, 2022 by

Irmsa warns economy is in for drastic growth decline should fuel caps, Stage 8 load-shedding ensue

With resurgent warnings about load-shedding potentially increasing as high as Stage 8 and the possibility of fuel rationing in the domestic market, the Institute for Risk Management South Africa’s (Irmsa’s) ‘Risk Report’ for 2022 states that the South African economy is in for serious energy risks.

Eskom COO Jan Oberholzer recently confirmed that the State-owned power utility was using nine-million litres of diesel a day at its open-cycle gas turbines in order to avoid load-shedding or to keep load-shedding at lower levels while its coal fleet is struggling to meet supply.

March 18, 2022 by

Wood Mackenzie unpacks the changing elec landscape in Africa

Global energy consultancy Wood Mackenzie is confident that sub-Saharan Africa offers an alternative vision of how the energy transition can change power generation.

“The evolution of sub-Saharan Africa’s utility business model, both on and off the grid, will fundamentally reshape the trajectory of global electricity demand and will be essential to the energy transition.

March 17, 2022 by

Eskom sees R20.9bn of extra diesel costs on coal outages

Indebted State-owned power utility expects running costs for its diesel-fed turbines, which are used to keep the lights on when coal-powered plants break down, to surge as it struggles to keep up with maintenance. Eskom Holdings sees about a third of its coal-fired capacity being unavailable at any one time under a most likely scenario, it said last week in a presentation to the National Economic Development and Labour Council, which groups business, government and labor union representatives. That would require it to spend R20.9-billion on fueling its open-cycle gas turbines in the 13 months through April next year, or almost three times what it spent in the financial year ended March last year.
March 17, 2022 by