state-owned utility – Just Transition Initiative

Summary

This paper examines coal-related struggles in South Africa, asking whether resistance from mining-affected communities, the labor community, and the environmental justice movement can counteract the state’s agenda and the coal industry to promote an alternative social order. The author argues that, in the process of elite capture, the current concept of just transitions has lost its transformative potential and now represents market-driven change toward a new, privatized renewable energy regime.

The findings of this study are based on exchange workshops with representatives from these three social groups. In many mining-affected communities, dependence on coal creates socially complex, ambiguous patterns of resistance. While there is collective action against coal-related activities, resistance is not directed against coal per se but rather against environmental pollution, migrant laborers, and damage from mine blasts. There seems to be little recognition that coal mine closures are inevitable, and community members often feel that the “just transitions” concept lacks substance or a clear alternative vision to coal. The author describes the narratives and struggles within the labor and environmental justice communities as well.

The author suggests that a “counter-power” is required to build a movement for greater equality, increased sustainability, and alternative development pathways to coal. However, generating this counter-power involves linking different struggles. The author suggests that livelihoods, defined as the immediate needs of poor communities, can be the bridge for shared understanding.

Summary

This case study examines the Concentrated Solar Power (CSP) plant in Upington developed by Eskom, South Africa’s state-owned electricity utility. Although not fully commissioned at the time of publication (2014), the project aimed to help meet the country’s rapidly increasing energy demand in accordance with its ambitious clean energy plan by reducing greenhouse gas emissions, establishing local supply chains and infrastructures, creating local jobs, and improving the region’s wealth. However, the project was considered exceptionally challenging and ambitious due to its proposed technology choice, generating capacity, and storage potential.\n\nThe project was entirely publicly financed through lending on a concessional basis from six international financial institutions (IFIs), supplemented by Eskom contributions. Project risks included debt financing and foreign exchange risk as well as various administrative and procurement requirements. The study evaluates Eskom’s risk management approach and provides recommendations to future developers and financiers seeking to replicate the project, noting that its scale suggests future, larger projects will see reduced costs and greater efficiency. Since concessional finance from external sources is limited and there are constraints on debt financing from public funds, the authors suggest that private actors such as local and foreign commercial banks are needed to deploy and establish further CSP plants.
This case study examines the Concentrated Solar Power (CSP) plant in Upington developed by Eskom, South Africa’s state-owned electricity utility. Although not fully commissioned at the time of publication (2014), the project aimed to help meet the country’s rapidly increasing energy demand in accordance with its ambitious clean energy plan by reducing greenhouse gas emissions, establishing local supply chains and infrastructures, creating local jobs, and improving the region’s wealth. However, the project was considered exceptionally challenging and ambitious due to its proposed technology choice, generating capacity, and storage potential.

The project was entirely publicly financed through lending on a concessional basis from six international financial institutions (IFIs), supplemented by Eskom contributions. Project risks included debt financing and foreign exchange risk as well as various administrative and procurement requirements. The study evaluates Eskom’s risk management approach and provides recommendations to future developers and financiers seeking to replicate the project, noting that its scale suggests future, larger projects will see reduced costs and greater efficiency. Since concessional finance from external sources is limited and there are constraints on debt financing from public funds, the authors suggest that private actors such as local and foreign commercial banks are needed to deploy and establish further CSP plants.