Mineral Resources and Energy Minister Gwede Mantashe says he expects Eskom to make an application soon for a Section 34 determination to facilitate gas-to-power generation at some of the coal power stations that the utility aims to repower and repurpose as part of its unfolding just energy transition strategy.

Speaking during an energy dialogue hosted by the Central Energy Fund (CEF) and the Financial Mail, Mantashe indicated that the determination would be “in addition” to the 3 000 MW allocation for gas-to-power in the Integrated Resource Plan of 2019 (IRP 2019), which outlines the new electricity generation to be introduced to the system by 2030.

The Minister did not provide details on how an Eskom determination would be accommodated, saying only that it would give it the “right to procure gas generation as they are repurposing some of their plants in Mpumalanga”.

“Some of those power stations will replace coal turbines with gas turbines [and] reduce carbon emissions dramatically in the process,” Mantashe said at an event that attracted a vocal contingent of fossil-fuel advocates.

Eskom has stated that it has a ‘repowering’ project pipeline of 8 000 MW, including a potential 1 000 MW gas project, which could be implemented at one of the power stations scheduled for decommissioning.

The Komati, Camden, Grootvlei and Hendrina coal stations are scheduled for closure this decade.

Earlier, energy and chemicals group Sasol announced that it had signed a draft term sheet for the delivery, from 2026, of liquefied natural gas to Mpumalanga, through Mozambique’s Maputo port.

The gas would be used for Sasol’s own transition away from coal, but it has been speculated that some molecules could also be used for electricity as well as to shore up supply to industrial users mostly in Gauteng as imports from the Pande and Temane fields tapered.

Sasol has indicated, however, that it views gas as a transition fuel and that it intends to progressively introduce green hydrogen at its facilities in order to meet its own net-zero commitments.

Mantashe noted that the CEF, working with Coega Development Corporation, had issued a request for proposals (RFP) for a gas aggregator to secure the liquified natural gas necessary for gas-to-power generation, for which a separate RFP would be issued before the end of the year.

Under the Electricity Regulation Act, the Minister, in consultation with the National Energy Regulator of South Africa (Nersa), issues Section 34 determinations to facilitate government’s procurement of new generation capacity.

Besides a determination for 3 000 MW of gas, which was issued in September 2020, Mantashe has also already published determinations for 6 800 MW of wind and solar photovoltaic, 513 MW of battery storage and 1 500 MW of new coal.

Controversially, he also received Nersa’s conditional concurrence last year for a determination for the procurement of 2 500 MW of new nuclear generating capacity, despite there being no allocation for new nuclear in the IRP 2019.

The Nersa concurrence is subject to several suspensive conditions, including establishing, through a demand and generation profile analysis, the rationality of adding 2 500 MW of nuclear post-2030.

“We are addressing the suspensive conditions from Nersa that will enable the Department of Mineral Resources and Energy to issue a RFP for 2 500 MW of nuclear energy,” Mantashe said.

Warnings about the high cost of, and the lack of funding for, new nuclear and new coal were batted away, as were the concerns that the introduction of high levels of imported and domestic gas into the South African mix could result in stranded assets and reduce the competitiveness of South African exports as carbon tariffs were introduced by countries with net-zero emission targets.

Instead, Mantashe said that South Africa could not be an “island of angels when we are drifting into poverty”.

“We are committed to implementing a rational energy transition that addresses our national interest and desire to industrialise.

“It will not be reckless.

“It is systematic and orderly to ensure security of energy supply to society.

“It accepts our global commitments to reduce carbon emissions and mitigate against global warming,” the Minister insisted.