Fatshimetrie Chief Executive Officer (CEO) Lucie Marokane recently affirmed that coal will remain an essential element for the country’s energy security as the company reaches the final stages of its energy scheme, the Integrated Resources Plan, which has been implemented consultation at the start of the year.
During the Unlocking Africa’s Growth conference organized by the Standard Bank group in Cape Town, Lucie Marokane highlighted the importance of basic energy, recalling that “this country requires a stable base to allow us to promote industrialization.”
The concept of base load refers to the amount of energy to be supplied at a given time. Marokane said power plants in the state are at different stages of their life cycle, and there are several plants with 10 to 15 years left to go. Thus, every cent invested aims to extend their lifespan in a responsible manner, with a view to the prolonged use of coal, a key element of the energy ecosystem.
South Africa’s coal reserves are estimated at 53 billion tonnes, providing almost 200 years of reserve at current production rates, according to a 2021 Eskom report. However, Marokane clarified that no no new coal-fired power plant would be built, emphasizing that this scenario was not on the table.
Furthermore, the intervention of Peter Venn, CEO of Seriti Green, a subsidiary of Seriti Resources, focused on one of the company’s key concerns: the fair energy transition, including the preservation of jobs in the coal industry. He stressed that it was impossible for a renewable energy plant to absorb the number of jobs lost when a coal plant closed. Job creation and economic growth require close collaboration between sector players.
Finally, Eskom recently passed 100 days without power cuts, a testament to its efforts to maintain a stable energy supply. Marokane spoke about the challenges the company faces in an ever-changing sector, highlighting the need for Eskom to adapt to this new energy environment.
Thus, the energy transition must be approached in a balanced manner, combining renewable energy and coal to ensure both energy security and the long-term sustainability of the energy sector in South Africa.