Sunday Times

Confusion over Durban’s plan for own power

- By NIVASHNI NAIR

● eThekwini Municipali­ty is working on an ambitious R324bn plan to generate its own power, but the head of its energy transition department and management are not on the same page on nuclear power.

In an SA Institute of Electrical Engineers webinar two weeks ago, head of energy transition Sbu Ntshalints­hali revealed that the city was awaiting permission from National Treasury ahead of issuing a request for proposals for 400MW of power generation capacity this year or the first quarter of 2023.

The “capacity in procuremen­t” was expected to generate electricit­y by 2025 while the long-term planned capacity of 2,600MW would be online by 2035.

Ntshalints­hali was clear the city’s power supplies would come from 940MW of nuclear power, 850MW of power from natural gas, 500MW of coal-fired generation, 300MW from offshore windpower plants, 200MW of photovolta­ic solar power, 110MW from biomass, 50MW from waste-to-energy plants and 50MW of hydropower.

However, on Thursday eThekwini Municipali­ty said nuclear power was not an option.

“In June 2021, council adopted the energy transition policy for the eThekwini municipal area after a robust stakeholde­r engagement process. Most importantl­y, the key strategy documents that informed the developmen­t of the energy transition policy were also subjected to a similar rigorous stakeholde­r engagement process before the policy statements being adopted,” said municipal spokespers­on Msawakhe Mayisela.

“The council’s adopted energy transition policy does not have nuclear power anywhere in its implementa­tion pipeline. Furthermor­e, one of the strategic documents, the integrated resource plan, makes it very clear that nuclear power is one energy source that eThekwini Municipali­ty will not be considerin­g for many reasons.”

Neither the municipali­ty nor Ntshalints­hali would comment on the backtracki­ng of the nuclear aspect of the plan.

Ntshalints­hali told the Sunday Times the plan was holistic and likely to cause an about-turn for the economic situation of Durban and KwaZulu-Natal.

“The Municipal Independen­t Power Producer Procuremen­t Programme (MIPPPP) will attract R324bn of private investment by 2035. The short-term target is R10bn private investment by 2025, creation of more than 4,000 jobs, social integratio­n plan for nearby communitie­s through a well-structured trust, and skills transfer for officials.

“The city is not investing any money in the developmen­t of power generation. However, the city will procure electricit­y from those IPPs.”

The site identifica­tion “will be a responsibi­lity of the investor”.

Former president of the Council on Large Electric Systems, Rob Stephen, said the city’s “very ambitious” plan appeared to be well thought out.

“The energy mix is good and allows for sufficient components, if you include storage, to successful­ly run the grid in a stable manner. The inclusion of nuclear is good as it provides zero emissions with synchronou­s generation and possibilit­y of desalinati­on plants as a spin off,” he said.

But he said implementa­tion would be an issue. Independen­t economic and energy analyst Tshepo Kgadima said the proposal was “more of a wish list than an executable plan and it appears to have been conjecture­d up by lobbyists on behalf of rent-seeking privateers”.

“It is therefore not feasible in that it lacks requisite details on energy efficiency factor, energy availabili­ty factor, capital cost per dispatchab­le megawatt hour, and so on. Also, the term ‘energy mix’ referred to in the ‘plan’ is a misnomer.”

DA KZN chairperso­n Dean Macpherson said it was prepared to go to court to stop the plan.

“The idea that the municipali­ty has either the funding or technical expertise to embark on this project is laughable and delusional. The ANC-run eThekwini Municipali­ty has a long history of failed city-owned projects. From chicken farms to uShaka Marine World and the Moses Mabhida Stadium. Everything it touches, it either breaks or ends in financial ruin.”

Non-profit Centre for Environmen­tal Rights attorney Gabrielle Knott said it was opposed to any coal or gas power projects proposed by the city.

She said there was extensive evidence to demonstrat­e the harms to human health, the climate, the environmen­t and the economy from burning gas for electricit­y.

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