Freeze new coal plants, or SA’s economy will bear the cost – report | Fin24

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South Africa's economy is heavily reliant on coal for electricity generation.

South Africa’s economy is heavily reliant on coal for electricity generation.

Delaying the transition away from coal would come at a “considerable” cost to the economy, according to new research.

A research report on the coal value chain of South Africa – authored by economists Dr Neva Makgetla and Muhammed Patel of the independent economic research institute Trade & Industrial Policy Strategies (TIPS) – recommends that government take key policy decisions on the country’s energy transition. Among these include freezing proposals for new private coal plants and ending new tenders meant to replace the failed private coal projects Thabametsi and Khanyisa.

Other recommendations include reviewing the timeline to decommission older coal plants – as this will reduce the cost of pollution and allow for other energy sources – and encourage the aluminium industry and Sasol to develop cleaner energy sources as rapidly as possible.

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Read More:Freeze new coal plants, or SA’s economy will bear the cost – report | Fin24