On 19th August the National Energy Regulator (NERSA) held an online public hearing on the Karpowership’s electricity generation license application for Saldanha, Ngqura and Richard’s Bay. The Centre for Environmental Rights (CER) submitted written comments on behalf of groundWork ahead of the hearing.
The NERSA chair, Mr Nhlanhla Gumede, said that NERSA is obliged to promote energy diversity and that decisions had to be based on a balance between economic development, the environment and livelihoods.[MOU1] groundWork, along with other civil society groups emphasized that Karpowerships electricity generation licenses should be denied on the grounds that it will not be able to meet the environmental law requirements, a pre-requisite for granting and electricity generation license, and for its high costs, climate change impacts and lack of demonstrated ability to comply with environmental laws delivering energy justice for the poor. Concerns over a twenty-year contract were also echoed as renewable energy and storage could generate three times more energy and at a lower cost over the same period. [MOU2]
Karpowership’s lack of consideration of other alternative renewable energy systems, which provide positive impacts in terms of job creation, electricity production and economic stimuli. The negative impacts on tourism, fisheries, other livelihood and climate change were not assessed.
The most recent IPCC report, affirms that each 1000GtCO2 will cause 0.45oC warming and that the planet is currently heading towards 1.5 degree Celsius warming by 2030. The report states that beyond this threshold there will be catastrophic consequences for the Southern African region, including food insecurity, an increase in the poverty gap, negative health and economic consequences. The relative sea level has increased at a higher rate than global mean sea level around Africa over the last 3 decades and is likely to increase contributing to the frequency and severity of coastal flooding and coastal erosion. The rate of surface temperature increase has been more rapid in Africa than the global average. The climate crisis will deepen our socio-economic challenges and weigh heavily on poor and vulnerable communities and their livelihoods.
Electricity generation from Karpowership specifics surrounding the license applications including where and how electricity will be produced, whether this will impact on the electricity price, and whether this will have long term implications for the public (and knock on effects on the economy) do not only impact on the people in Coega, Richards Bay, or Saldanha, but on the people of South Africa as a whole. Therefore, NERSA should have published the applications more widely, including in national newspapers together with an exact weblink, as opposed to a generic site for NERSA and Karpowerships websites for the online application documents. After notifying NERSA of this shortcoming, on 24th June 2021, NERSA did provide the link to the application, but only by email and refused to re-advertise the application in the national newspapers.
The commenting period did not provide sufficient time to adequately comment and the request for 30 days per application was denied. Further challenges to evaluating and commenting meaningfully and adequately included the redaction of documents including fuel supply agreements, power purchase agreements and tariff structures, annual financial forecast for the next 5 years, details of project financing, development plans (skills, supplier and enterprise) and the transmission agreement. NERSA should make these documents available for comment in order to ensure transparency and meaningful public participation. But by not allowing this, they are as a government institution preventing an open democracy that we have been calling for as civil society organisations.
On 23rd June 2021, the Department of Forestry, Fisheries and the Environment refused the Karpowership Environmental Authorisation for all three ports. The reasons for the refusal indicated that Karpowership will be unable to meet legislative requirements including conducting key specialist assessments such as the Underwater Noise Impact, Avifaunal Impact Assessment and the peer review of Estuarine Impact Report. Impacts on marine life and small scale-fisheries were not considered and the minimum requirements for public participation were not met. The Environmental Assessment Practitioner (EAP) Hantie Plomp is currently under investigation by the Environmental Assessment Practitioners Association of South Africa (EAPASA) for, amongst other reported misdemeanors, failing to notify the public of new information contained in reports and to make this available for further consultation.[MOU3]
Karpowership does not fit into the presidential commitment to a just transition towards a low carbon, inclusive, climate change resilient economy and society. It is not the best technology available, but rather, it is expensive, dangerous, exclusionary and will lock South Africa into gas which will increase our carbon and greenhouse gas emissions and fast track the effects of climate change. Karpowerships are not needed. There are better alternatives that will meet our electricity demand, which are cleaner, safer, cost effective, inclusive and will improve our climate resilience in the just transition. These alternatives were not considered in the environmental assessment reports.
At the time of the hearing, many of the licenses and key consents required by Karpowerships to comply with the all the legal requirements were still outstanding, including:
- Environmental Authorisation (EA) in terms of NEMA: Final Environmental Impact Assessment planned to be submitted by 21 April 2021 and awaiting decision (subsequently refused);
- Water Use Licence (WUL) in terms of the National Water Act, 1998: application submitted in November 2020, and public participation underway;
- Air Emission Licence (AEL) in terms of the Air Quality Act, 39 of 2004 (AQA): application submitted in March 2021, awaiting decision;
- Biodiversity and Conservation permits in terms of various legislations including National Environmental Management: Biodiversity Act, 10 of 2004 (NEM:BA); Provincial legislations and By-Laws: not yet applied;
- Protected Tree Licences, National Forests Act, 84 of 1998 (NFA): not yet applied;
- Fire Safety By Law Permit and Occupational Health and Safety Act. 85 of 1993 (OHA) permits: not yet applied; and
- Registration in terms of Major Hazard Installation Regulations, 2001: not yet applied.
by Avena Jacklin
Climate and Energy Justice
groundWork, Friends of the Earth South Africa