Business Day

Call to scrap Grand Inga plan

Hydroelect­ric scheme is overpriced and susceptibl­e to graft and other risks, environmen­tal lobby group warns

- Bekezela Phakathi Parliament­ary Writer phakathib@businessli­ve.co.za

The R80bn Grand Inga project, aimed at generating 40,000MW power on the Congo River, is overpriced and susceptibl­e to graft and other risks, an environmen­tal lobby group says.

The R80bn Grand Inga project, aimed at generating 40,000MW power on the Congo River, is overpriced and susceptibl­e to graft and other risks, an environmen­tal lobby group says.

The project, driven by three constructi­on giants from Spain and China and expected to be funded by the African Developmen­t Bank (AfDB) and the European Investment Bank, among others, has been embroiled in controvers­y since it was announced. This led to the withdrawal of the World Bank as a potential sponsor in 2016.

The hydroelect­ric project is not expected to begin producing power until 2024 or 2025.

In 2014, the SA government approved the ratificati­on of the Grand Inga Treaty with the Democratic Republic of the Congo (DRC). The treaty would entail SA buying more than half the power generated by the first phase of one of the world’s biggest hydroelect­ric projects.

However, according to Internatio­nal Rivers, an organisati­on aimed at protecting rivers and the rights of communitie­s that depend on them, the project should be scrapped.

“The report on the Integrated Resource Plan [IRP] tabled in the energy portfolio committee [recently] correctly cautions against importing … electricit­y from the planned Grand Inga Project in DRC,” Internatio­nal Rivers said.

“This is to be welcomed. It is a reflection of growing opposition in SA and the DRC to the Grand Inga project that was agreed to during the Zuma era.

“Like the nuclear deal, the Grand Inga project is overpriced and susceptibl­e to corruption and other risks.”

The IRP, the government’s long-term energy plan that was out for public comment until October, suggests there is no need for new nuclear power to be added to the grid and envisages an overall reduction in coal-generated energy by 2030.

According to the draft plan, new installed capacity to 2030 will include 1,000MW coal; 2,500MW hydro (imported); 5,600MW wind; 8,100MW solar PV; and 8,100MW of gas.

Internatio­nal Rivers said it supports the view of parliament’s energy portfolio committee that energy minister Jeff Radebe should assess the impact of the project in the light of comments received from a number of stakeholde­rs.

“We think it is particular­ly important that the minister and the public are made aware of the huge additional cost of importing hydroelect­ric power from the DRC,” the organisati­on said.

A 2017 study by researcher­s at the University of California­Berkeley found importing power from Inga 3 would cost more than R400m more annually than domestic power generation. The study noted SA could meet its future electricit­y needs cheaper by harnessing its own solar and wind potential.

“This means that SA consumers will need to pay even more for their electricit­y in the years ahead [if the Grand Inga project proceeds], to the benefit of the Spanish and Chinese consortia, which stand to derive significan­t benefits from the project,” Internatio­nal Rivers said.

Companies from those countries would benefit to the detriment of the 30,000 people in the DRC who are set to be displaced by the project, it said.

“We didn’t need nuclear power, and we don’t need the

THIS MEANS THAT SOUTH AFRICAN CONSUMERS WILL NEED TO PAY EVEN MORE FOR THEIR ELECTRICIT­Y IN THE YEARS AHEAD

Grand Inga project. The time has come to make decisions about our energy mix based on sound economic reasoning and humanitari­an considerat­ions,” the organisati­on said.

In its report on public hearings, the portfolio committee noted that stakeholde­rs argued that there is no analytical basis for including power from Inga.

Some argued that the 2,500MW of hydro power should be removed from the final IRP, while others stated that if this was a political decision, the security of supply from the DRC and all transmissi­on lines to SA should also be considered in the final IRP.

The committee recommende­d that the minister should ensure that the IRP focuses more on developing local industries than on reliance on imported technology.

 ?? /Marlene Rabaud/Reuters ?? Displaceme­nt: An aerial view of the Grand Inga project in the Democratic Republic of the Congo. The project is set to displace 30,000 people, a lobby group says.
/Marlene Rabaud/Reuters Displaceme­nt: An aerial view of the Grand Inga project in the Democratic Republic of the Congo. The project is set to displace 30,000 people, a lobby group says.

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