An illegal miner gathers coal in a mine in Ermelo, Mpumalanga. South Africa’s lack of coherent policy direction and overreliance on coal will be detrimental to the country. Photo: Nelius RademanEvery woman has had visitors who sloganeer militantly in the lounge about women’s oppression but won’t venture into the kitchen to help do the dishes.
Consider, for instance, the factors that promote continued dependence on coal. In many ways, the coal value chain is the core of the minerals-energy complex. These towns account for only 2% of the national population but 4% of the GDP, 70% of coal mining and almost 15% of electricity and petrochemicals.This is the thorniest kind of economic policy, where the benefits of change – in this case, a shift to cleaner energy and development of more equitable, labour-intensive industries – are huge but widely spread and often intangible, while the costs are visible and concentrated.
But the transition away from coal will also come with costs. Most obviously, the new energy systems require large upfront investments in transmission and grid management, as well as generation. The costs of the transition have so far been higher than needed because government systems have long been skewed to favour coal use. This is a problem of both the structures of the state and its specific decision-making systems.Government oversight over the coal value chain is fragmented between a dozen departments, the provinces of Mpumalanga and Limpopo, Mpumalanga’s coal towns and several state-owned enterprises.
That calculation should take into account not only the direct costs of generation and transmission, but also the cost of emissions and other pollution, the growing unreliability and escalating tariffs of Eskom’s supply, and the impact of global technological trends on generation costs.
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