Banele Ginidza

The Department of Forestry, Fisheries and the Environment (DFFE) has said he was giving Eskom a six month deadline to submit a new cost analysis report on the Medupi Power Station Flue Gas emissions.

Minister of Environment, Dion George, on Monday vowed to hold the power utility to account on environmental compliance while still demanding adequate electricity supply.

George announced exemptions to extend the operational licences of eight coal-fired power stations to continue with operations.

He said the department had braced for all challenges, including court processes, from Eskom on the stricter enforcement of compliance with environmental legislation but warned he ever went to court on winnable matters.

"Medupi, is a heavy emitter of toxic chemicals and that a lot of people have been animated about. I decided the way I did there was some concern by Eskom and others that it is an incredibly expensive exercise apparently," George said.

"I don't know why it got to be what it is but it is like this. So I want another cost-benefit analysis, another one must must be done in six months. It must be done properly. I want to have a close look at it because I can actually count and I do know how finance works."

George said though Eskom had asked for longer periods, he decided on five years because it was reasonable and with Eskom's debt position and other considerations.

He said there had to be a balance between constitutional right to clean energy with the fact that the country required energy in the grid.

"I had a close look at the financial statements. The debt of Eskom, it is enormous. I looked at the balance sheet and what the profit would be etc. So I do not believe that this puts Eskom under un-due pressure. It certainly puts them under pressure, and that is actually my intention. Because more of the same is not going to work that is the point. The game has changed, so now let's proceed on that basis," George said.

"Eskom has been dragging its feet on transmission and new Independent Power Producers (IPPS), that is not a secret. There is no point in having a monopoly that is not able to provide the energy, we need a different thing."

"We want to comply as much as we can, in the event there are difficulties for us, we keen to have agreement in such a way that we have carbon taxes and companies pay that. We are asking for a circular kind of arrangement where money does not go from the Global North to the Global South, that is the conversation we are having,' he said.

Eskom said it would now review the decision announced by George pertaining to its exemption application requesting revised limits for Sulphur Dioxide (SO2) and for an extension in time to comply with Particulate Matter (PM - also known as ash) and Nitrous Oxide (N2O) limits at selected power stations.

"Eskom notes that today’s decision maintains its license to operate at Medupi, Majuba, Matimba, Kendal, Lethabo, Tutuka, Matla and Duvha power stations, which contribute a total of 29 000MW to South Africa’s electricity grid and play a material role in maintaining the country’s energy security, beyond the 31 March 2025 deadline," said the utility.

Eskom said it was committed to working with the DFFE and all stakeholders, adding that it will make further announcements in due course.

The company said it remained dedicated to aligning with regulatory requirements and implementing sustainable solutions to ensure long-term operational efficiency, reducing any negative impacts on health and environmental stewardship.

Meanwhile, George said he was part of the engagements on the Carbon Border Adjustment Mechanism (CBAM) with the European Union in which South Africa was trying to sway the "transferring of money from the global South to the Global North."

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Environmental Minister sets six-month deadline for Eskom to address Medupi emissions