South African President Cyril Ramphosa’s bizarre power plan
President Cyril Ramaphosa has revealed that on his trip to China he agreed to build a Chinese-backed 4600 MW coal power station, despite it being legally incompatible with the recently released national power plan, writes Dewald Van Rensburg in Fin24.
While existing coal plants burn cash, the Indian Government approves even more
Despite many existing coal power plants sinking below the 50 per cent capacity mark, the approval of even more projects by the Indian government will only make matters worse, writes Manka Behl in the Times of India.
US insurers are missing the boat on coal
While many big insurers are now moving away from coal, only the US insurance industry is missing in action, writes Peter Bosshard, the coordinator of the Unfriend Coal Campaign.
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Indian Supreme Court orders coal plants to meet pollution standards
The Supreme Court has ordered 57 government-owned coal units to comply with pollution control standards to cut sulphur dioxide and particulate emissions by December 2021. The units are in power plants with over 500 MW capacity located in heavily populated areas designated as being ‘critically polluted’. The court gave the government-owned utilities until December 2022 to comply with nitrogen oxide pollution control standards. The government argued that while there are 48 similar units at plants run by state government-owned utilities and by private companies the Ministry of Power “cannot exercise coercive authority over them.” The court was not persuaded. “Keeping in view the requirements of the environment and health of the people, it would be appropriate if these power units are brought on board,” the order said. A further hearing has been scheduled for October 11. (Times of India, Business Standard)
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California sets 2045 target for decarbonisation: Californian Governor Jerry Brown has signed law SB 100 which commits the state to source 100 per cent of its electricity from clean energy sources by 2045. The legislation also increases the Renewable Portfolio Standard from the current 33 per cent by 2020 target to 50 per cent by 2025 and 60 per cent by 2030. With the electric power sector responsible for just 16 per cent of the California’s greenhouse gas emissions, Brown also issued an executive order setting the target for the state to achieve carbon neutrality by 2045. (Greentech Media, Governor Jerry Brown) South African President unveils plan for huge new captive coal plant: On his return from a trip to China in South African President Cyril Ramaphosa announced that he signed an agreement with the Bank of a China to develop special economic zones. In the proposed Makhado zone, Ramaphosa agreed to a new 4600 MW coal-fired plant to provide captive power to metals processing and other industrial plants. Grove Steyn from Meridian Economic argues the proposed plant would not only be more expensive than renewables but is unnecessary as Eskom has surplus capacity. (City Press, Mining Weekly, Business Insider) Queensland launches investigation into Adani drilling without permits: The Queensland Department of Environment and Science has launched an investigation into Adani drilling water bores at its proposed Carmichael mine site even though its environmental approval states that stage two activities cannot commence until management plans for the endangered black-throated finch and the groundwater system which supports Doongmabulla Springs have been finalised. Adani claims its drilling operations are a stage one exploration activity. The department began its investigation after the community group Coast and Country provided satellite images and drone footage revealing the drilling operations. (ABC News) Study estimates deadly toll of proposed Taiwanese plant: A health study estimates 570 people would die prematurely due to increased air pollution in the first 15 years of operation of the proposed 1200 MW Shenao coal plant. The study focussed on the death toll only from heart disease, strokes, lung cancer or chronic obstructive pulmonary disease caused by increased PM 2.5 fine particle air pollution. The study did not estimate the non-fatal health impacts from PM2.5 pollution or illnesses caused by other power plant pollutants. The study, which was undertaken by three academics from Taiwanese universities, was commissioned by Greenpeace. The study on the proposed plant by the Taiwan Power Company simulated air quality for just a two-month period while the Greenpeace study modelled the impacts of fine particle air pollution over a year. (Taipei Times) Strong support by Australians for coal power phase-out and mine moratorium: An annual tracking survey has revealed that 70 per cent of those polled support planning for the orderly closure of coal plants and their replacement with clean energy. Forty-nine per cent of respondents supported governments imposing a moratorium on both new coal mines and expansions of existing mines. Only 20 per cent of those surveyed opposed a moratorium on new mines or their expansion. (Sydney Morning Herald, Australia Institute) Mines accused of illegally taking water from Australian river system: Based on publicly available data, Lock the Gate alleges coal companies in the Hunter River catchment in New South Wales are taking an estimated 40 million litres of rainfall and groundwater a year when their water licences allow for only half that volume to be used. While mining companies and other landowners can legally use up to 10 per cent of average rainfall run-off, Lock the Gate estimates that the coal industry’s own data indicates that companies operating in the Hunter Valley are sourcing about 55 per cent of their water from captured run-off, with significant implications for other downstream users and environmental flows. Lock the Gate said data for Whitehaven Coal's Maules Creek Mine showed it captured 1,800 million litres of surface water in 2016 but was licenced to use only 30 million litres. The mining industry is lobbying against further regulation of water use. (Newcastle Herald, ABC News, Lock the Gate) Navajo Nation members protest coal plant takeover plan: Members of the Navajo Nation have protested outside the New York offices of the Avenue Capital Group which is attempting to take over the 2250 MW Navajo Generating Station in Northern Arizona. The plant is the largest coal plant in the western states and is slated to close on December 19. However, Peabody Energy, which supplies coal to the plant and has no alternative customers, has been campaigning to keep the plant open and attract a buyer. Nicole Horseherder, the Executive Director of the Navajo environmental group To Nizhoni Ani, wants Avenue Capital to drop their interest in the project due to the health impacts of the plant and the need to transition to clean energy. (Cronkite News, New York Daily News) Appeal against Serbian mine lodged: The Serbian NGO Center for Ecology and Sustainable Development (CEKOR) and Bankwatch have filed a complaint to the Energy Community Secretariat over the failure of the Serbian Government to require an environmental impact statement on the expansion of the Drmno lignite mine. The mine expansion, which has been funded by Chinese banks, is intended to cater for the proposed Kostolac B thermal power plant. The groups argue the committee overseeing the implementation of the Espoo Convention on environmental impact assessment needs to ensure Serbia abides by the provisions of the convention requiring environmental review and consultation with neighbouring countries on transboundary impacts. (Bankwatch) “Undoubtedly, there was some [corruption], but it is hard to tell banker exuberance, incompetence, and corruption apart,”
the former Governor of the Reserve Bank of India, Raghuram Rajan, wrote on the cause of bad loans for coal power and other infrastructure projects.
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Australia: Aboriginal group files legal challenge to block underground coal gasification project in South Australia. Australia: Court reserves judgement after two-week hearing over proposed Rocky Hill mine near Gloucester. Greece: Bidders for Public Power Corporation lignite plants seek another month to finalise proposals. India: Odisha environmental regulator warns Coal India over environmental violations at two mines. Kenya: Landholders displaced by proposed Lamu coal plant protest decision to axe cash compensation for lost land. Poland: As climate talks near, Polish Government flags plan to cut coal’s contribution to half of total power generation by 2050. South Africa: Department of Mineral Resources approves environmental licence for Makhado coal project. US: Duke Energy plan to phase out its last seven coal plants over 30 years criticised as foot-dragging. US: Court rules PacificCorp can keep its coal fleet cost data secret despite regulator’s bid for transparency. |
Indian banks’ sloppy procedures contributed to debt crisis: In a note to a Parliamentary estimates committee the former Governor of the Reserve Bank of India, Raghuram Rajan, said that the “suspect allocation of coal mines coupled with the fear of investigation” had slowed down successive governments from taking prompt action to prevent an increase in bad loans made by Indian banks. Rajan said another contributing factor was the banks’ lack of independent analysis of proposed power projects. Rajan argued the banks need to implement far stronger measures for project evaluation and monitoring and publicly owned banks should have greater independence from government influence. (The Print) Chinese company to investigate 4000 MW Bangladesh plant: The UK-headquartered GCM Resources has announced that China's Sinohydro Corporation will undertake a pre-feasibility study on a proposed 4000 MW Phulbari mine-mouth power plant. The project is in addition to a proposed US$3.8 billion 2000 MW plant, also at Phulbari, for which GCM Resources has entered into an agreement with China Gezhouba Group International Engineering. Neither project has been approved by the Bangladesh Government. In August 2006, over 50,000 people protested against mining at Phulbari. A paramilitary force opened fire on the protest, killing three and injuring between 100 and 200 people. (GCM Resources, CoalSwarm) Questions raised over Chinese loan for Eskom: President Cyril Ramaphosa is under increasing pressure to disclose details of a R33.4 billion (US$2.2 billion) loan from the Chinese Development Bank to Eskom for the completion of the Kusile power station. In July an Eskom spokesperson said the details of the interest rate being charged would not be released “purely for commercial reasons”. The leader of the Democratic Alliance, Mmusi Maimane, has threated legal action if Ramaphosa does not disclose the terms and conditions of the loan. (Fin24, Eyewitness News) Carbon price surge hitting German lignite generators: The European Union’s carbon price has surged to €25 per tonne (US$29 per tonne). An economic adviser to the German Government argues that between 15,000 and 25,000 MW of coal plant capacity would be forced to close if the carbon price stays at that level. Andreas Loschel, an economist at the University of Munster, said the current carbon price was already driving power generators to reduce the role of old coal plants and increase generation from newer gas plants. However, he said that even if those plants closed energy sector emissions would still fall short of reducing energy sector emissions by 61 per cent below 1990 levels by 2030. He said further measures would be required to bridge the emissions gap. (MontelNews) Australian coal export terminal restructures debt: A consortium of coal companies led by Glencore has gained court approval for the restructuring of a A$3.2 billion (US$2.3 billion) loan for the Wiggins Island Coal Export Terminal. The consortium told the court it was “not in a position” to repay A$2.578 billion (US$1.83 billion) in debt due for repayment on September 30 and has instead gain approval from its lenders to repay the debt by September 2026. The coal terminal was built at the height of the export boom but three coal companies subsequently went into liquidation. As a result the volume of coal exported is well below capacity which pushed port charges on reduced volumes to the point where they A$25 (US$18 per tonne) per tonne, five times as much as the adjacent RG Tanna terminal. (Reuters) Fitch sees renewables gaining ground in Asia: FitchSolutions estimates China’s reduction in support for new solar capacity will spur an increase in non-hydro renewables capacity in Asia due to an oversupplied solar equipment market. The consultancy also argues China will increase the emphasis on non-hydro renewables in under its international Belt and Road Initiative to expand renewables export opportunities “as well as international prestige”. (FitchSolutions) Poland pushes for new plant protection in EU rules: Poland, along with France, Italy, Hungary, Greece, Ireland and the UK, has objected to a European Commission decision to allow five German lignite plants in a capacity payments scheme to be exempt from potential tighter carbon dioxide emission standards. The Commission agreed in February that its support for subsidies of the German plants would remain “uninfluenced by the future rules on the design of the electricity market.” In earlier decisions on plants in France, Belgium, Poland, Italy and Greece, the European Commission ruled they would be subject to the outcome of a proposal to phase out state aid for power plants emitting more than 550 grams of carbon dioxide per kilowatt hour. Poland’s proposed 1000 MW Ostroleka C plant would not be viable if state subsidies are not permitted. (Euractiv, Euractiv) |
Implementing coal transitions: Insights from case studies of major coal-consuming economies, Institute for Sustainable Development and International Relations and Climate Strategies, September 2018. (Pdf) (The country specific case-study reports are here: China, India, Poland, Germany, Australia and South Africa.)
This 48-page report charts how a transition away from thermal coal could be implemented drawing on case studies of major coal-consuming countries of China, India, Poland, Germany, Australia and South Africa. |
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