coalMining Weekly reports that the Council for Scientific and Industrial Research (CSIR) Energy Centre has initiated a project to model the socioeconomic risks and opportunities associated with SA’s transition from a coal-dominant electricity industry to one that is increasingly based on renewable energy.  

The project is due to be completed during the first quarter of 2020.  The initial results indicate that the transition can deliver significant employment, social and environmental benefits.  However, detailed planning and coordination will be required in order to limit potential social dislocation in coal regions.  The study takes account of Eskom’s planned decommissioning schedule for its older coal-fired power stations, most of which are located in Mpumalanga.  In addition, the CSIR has integrated results from a wide-ranging analysis conducted on the employment scenarios likely to arise from the implementation of the draft Integrated Resource Plan 2018.  Renewable energy is anticipated to contribute up to 246,000 jobs for solar PV and up to 344,000 jobs for wind energy by 2030.  Although coal will remain the biggest employer in the sector overall in 2030, due to its larger share of total installed capacity, jobs across the coal value chain – including mining, manufacturing, operations and maintenance – will fall by about 100,000, from 287,000 in 2020 to about 183,000 in 2030 as a result of decommissioning.  In the absence of a specific intervention to cushion coal-dependent municipalities in Mpumalanga, the socioeconomic impact of the decline could be devastating, CSIR energy economist for energy industry and markets Ruan Fourie has cautioned.


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