Greenpeace recommends Eskom gets rid of coal power stations

A study commissioned by Greenpeace Africa titled Eskom: A roadmap to powering the future has recommended that the struggling power utility get rid of its coal power stations.

Coal power stations in the spotlightWith reports that Eskom's debt will reach a quite staggering R500 billion, the future of the state-owned company looks increasingly uncertain.

Eskom relies on coal due to the local market producing it relatively cheaply and the significant infrastructure geared towards coal power.

Greenpeace Africa's senior political advisor Happy Khambule said: Fundamental reforms of the South African electricity sector and Eskom's business model are inevitable and urgent.

This report presents a roadmap with solid options for the country's electricity supply industry crisis, outlines a realistic and sustainable future for Eskom, and ensures that all crucial functions of the South African electricity system improve.

The negative environmental impact of coal power stations and doubts over its long-term viability as a power source led Prof. Dr. Uwe Leprich, the author of the study, to conclude Eskom needs to start phasing it out.

Key recommendations for Eskom reform include:

The gradual phase-out of coal-fired power generation from Eskom to new generation companies (GenCos)

The refinancing of Eskom through the decommissioning of coal-fired power stations older than 40 years, and the sale of all remaining coal-fired power plants

The retention by Eskom of the important role of the transmission system operator with the possibility of operating its own grid-supporting (non-coal) power plants

The opening of the IPP auctions for renewable energies to Eskom as well in order to make it a significant part of the utility's business model

The possibility for Eskom to participate in the newly created six regional electricity distributors

The opportunity for Eskom to create new services for end-use customers on the basis of the digitalisation revolution that is evolving all over the world

Those interested can peruse of the complete study here.

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