The realities of coal and the energy transition in South Africa

The conversation surrounding coal and its role in an energy transition remain heated and complex as Coal and Energy Transition Day kicked off in Johannesburg.

The debates at the event offered differing opinions, with some thinking renewables should be introduced immediately while others support coal’s continuing importance.

Bernard Swanepoel, Non-executive Director of Implats, believes:”The reality lies somewhere in between, necessitating a balanced approach that considers the country’s current needs and future goals.”

The event brought together leaders from various sectors to discuss the international energy transition, the future of a diversified and sustainable energy portfolio, and the future of coal in Southern Africa.

“Coal remains a critical part of our country’s energy mix, and discussing its future within the context of the energy transition opens important conversations about sustainability and progress,” he said.

The global outlook on coal

The environmental impact of coal is a significant argument against its use. However, transitioning to cleaner energy technologies takes time, as history shows significant energy shifts are not immediate.?

In the keynote address, Thungela CEO July Ndlovu discussed the global outlook for coal and its role in the future energy landscape. The global divide in coal usage is a significant issue that affects various regions, Ndlovu noted while highlighting the phase-out of coal in various parts of Europe.

“Conversely, in the developing world, coal remains a critical component of the energy mix . Nearly a billion people still live without access to reliable and clean energy. In such places, coal is not merely a source of energy; it is an instrument for the elevation of millions from poverty,” said Ndlovu.

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Ndlovu emphasised the importance of acknowledging the human story in the energy transition, emphasising the need to make responsible choices for future generations, despite economic arguments and technological advancements.

“The transition to cleaner energy should consider the diverse realities of different regions and their inhabitants, aiming for a sustainable and inclusive future. This balanced approach addresses environmental concerns while honouring economic and social needs.”

The future of coal in South Africa

One session addressed how the Southern Africa region is navigating its energy transition while still relying heavily on coal. It highlighted the critical balance between continuing coal production for economic stability and advancing renewable energy initiatives to meet global climate goals.

In South Africa specifically, the goal is to make coal green to continue meeting its base load needs and stimulating the country’s industrial and economic development.

State utility Eskom’s policy also prioritises high-efficiency, high-energy coals to minimise emissions per kilowatt produced, a significant step towards utilising existing coal resources.

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The $8.5 billion Just Energy Transition Partnership (JETP) proposed climate financing deal between South Africa and the governments of France, Germany, the United Kingdom, the United States and the European Union underscores South Africa’s commitment to shifting to cleaner energy sources, despite recent setbacks highlight ongoing challenges.

As acknowledged by the Mineral Council of South Africa, coal still remains vital as it provides immediate energy needs and supports significant employment, particularly in regions like Mpumalanga.

Tseliso Maqubela, Deputy Director-General of the Department of Mineral and Petroleum Regulation, said the role of the government is to establish a policy and regulatory framework for the transition to renewable energy.

Coal and the energy transition – FAQs

What is meant by the energy transition?

An energy transition is a major structural change to energy supply and consumption in an energy system, in this case moving from fossil fuels towards renewable energy sources.

What is the just energy transition in South Africa?

The South African government’s Just Energy Transition Implementation Plan, launched in November 2023, is a roadmap guiding the country away from reliance on coal-fired power towards renewable energy alternatives by 2027.

What is the major disadvantage of using coal for energy?

Of all energy sources, burning coal for energy generation releases the most greenhouse gases.

What is clean coal?

Clean coal technologies are a new generation of advanced coal utilisation processes that reduce carbon emissions and waste, and increase the amount of energy gained from coal.

Compiled by ESI Africa. Source: Mining Review Africa