The external cost of coal-fired power generation : the case of Kusile: Part 2

Abstract

Electricity generation, transmission and distribution in South Africa are handled almost exclusively by Eskom, a public utility established in 1923. According to Eskom, electricity production capacity in South Africa has been reached (see http://www.eskom.co.za/c/article/53/new-build-programme/) because of the development of the economy and the fact that South Africa has not recently augmented its power generation capacity. Eskom, supported by the South African government, has therefore embarked on a process to build more coal-fired power stations (Department of Energy, 2009).Putting action to words, Eskom commenced with the construction of two new coal-fired power stations, namely the Kusile power station in Emalahleni, situatedin the province of Mpumalanga, and the Medupi power station in Lephalale, Limpopo.Supporting these new power generation facilities necessitates the construction of new coal mines, as well as the expansion of existing coal mines.