South Africa’s green energy funding fiasco
to be the climate justice blueprint, the deal that showed how rich countries could help developing economies end their reliance on coal and go green. Almost 18 months on, South Africa’s US$8.5-billion transition showpiece looks more like a cautionary tale.
Five partners — Germany, France, the UK, US and European Union — agreed to provide some of the money required for South Africa to close dilapidated and failing coal plants, bolster transmission capacity, add renewable energy, and foster the development of electric vehicle and hydrogen industries to create new jobs. The JETP model was appealing because it was clearly-defined and measurable while still being large-scale.
At least 110 000 people are employed in the mines and power plants, which puncture the flat, maize-growing vistas of Mpumalanga, east of Johannesburg. While the region boasts spectacular scenery and wildlife, it is also home to some of the most polluted places on Earth. Some municipalities rely on coal for more than 40% of economic activity.
As the finances of Eskom and the government have deteriorated, power plants and towns across South Africa’s eastern coal belt have been left to ruin, with half the generating capacity out at any one time. Eskom has had to ration electricity in recent years. Rotating power cuts have been imposed every day bar one this year, often for more than 10 hours at a time.
The $8.5-billion that international partners are offering is meant to serve as a catalyst for more investment. Spain, for example, said this month it was providing $2.3-billion towards energy transition and water needs. Meanwhile, worsening power cuts are increasing pressure on Ramaphosa a year before general elections in which the ANC may lose its majority for the first time.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Netflix to invest $2.5-billion in South Korean productions - TechCentralNetflix said on Tuesday it plans to invest US$2.5-billion in South Korea over the next four years to produce Korean TV series, movies and unscripted shows.
Read more »
Convergence Partners invests in fintech trading platform - TechCentralFintech incubator 42Markets and its South African subsidiaries have received a R182-million investment.
Read more »
Zimbabwe to introduce gold-backed digital currency - TechCentralZimbabwe will soon introduce a gold-backed digital currency, according to central bank governor John Mangudya.
Read more »
ARM to build its own silicon: FT - TechCentralBritish chip maker ARM Holdings is reportedly building its own silicon chip to showcase the capabilities of its products.
Read more »
Hey Apple, where's your AI chatbot? - TechCentralAs Microsoft, Google and — now — Amazon.com blaze ahead in the race to deploy advanced chatbots like ChatGPT, one rival remains nowhere to be seen.
Read more »
Payments app SnapScan to offer physical card machines - TechCentralSnapScan has partnered with Standard Bank to offer businesses a low-cost card machine solution.
Read more »