The Centre for Environmental Rights has told MPs that the government should drop its plan to commission new coal power from independent power producers (IPPs) or face legal action, says a Business Day report. Two years ago the government called for bids for 1 000MW of coal power by IPPs and selected two consortiums to build the stations.

The 1 000MW of new coal was pencilled into the government’s draft Integrated Resource Plan – its long-term energy plan which was released in September. Parliament’s Committee on Energy is holding hearings on the plan before it is made final by Energy Minister Jeff Radebe. It is estimated, by the government’s own calculation, that the coal IPPs will unnecessarily raise electricity tariffs by an extra 1.9c/kWh and cost SA an additional R23bn in electricity tariffs over their lifespan.

Environmental groups have objected to the ‘policy adjustment’ to ‘force’ the two coal IPPs as part of the energy mix.

The government argues that because these have already been commissioned, they must go ahead. But the centre says the department is within its rights to withdraw the programme at any time. It told MPs that a study also shows that the government will have to pay an extra R23bn in emissions mitigation strategies if it is to keep within its carbon emission reductions target and build the two coal power stations.

Full Business Day report