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South Africa Shifts From Coal To Natural Gas In Energy Transition

04 Jul 2023

 

Over 90% of South Africa's electricity is produced using coal, which currently dominates the country's energy landscape. But the nation is currently going through an energy transition, with the aim of diversifying its energy mix and reducing its reliance on coal. Natural gas is one of the important resources that might be crucial in this transition from coal.

Compared to coal, natural gas is a cleaner and more effective energy source, and South Africa can use it to cut greenhouse gas emissions and adhere to the Paris Agreement's climate change commitments. Furthermore, because it can offer a dependable and adaptable backup for sporadic sources like solar and wind power, natural gas has the potential to support the expansion of renewable energy in the nation.

Natural gas's potential has been acknowledged by the South African government in its Integrated Resource Plan (IRP) 2019, which outlines the nation's energy policy for the following ten years.

The IRP outlines strategies to increase natural gas's contribution to the energy mix from its current level of 3% to 16% by 2030. The combination of importing liquefied natural gas (LNG), expanding domestic gas resources, and encouraging gas-to-power projects will be used to accomplish this.

South Africa's ongoing power crisis is one of the main reasons for the country's increased use of natural gas. Eskom, a state-owned utility, has been experiencing financial and operational difficulties, which frequently result in power outages and load shedding.

In comparison to coal or nuclear power plants, natural gas-fired power plants can be built more quickly and at a lower cost, making them a desirable option for increasing the nation's electricity supply in the near future.

Natural gas can help the South African economy grow and develop over the long term in addition to addressing the current power crisis. A significant portion of the nation's untapped gas reserves are located in offshore fields along its southern and eastern coasts. The exploitation of these resources could boost the economy, encourage capital investment, and increase energy security.

Major international energy companies are already interested in the potential of natural gas in South Africa. Off the coast of South Africa, the French energy giant Total announced a significant gas discovery in 2020 that could hold up to one billion barrels of oil equivalent. This finding has been hailed as a game-changer for the nation's energy industry and may open the door for additional offshore gas resource exploration and development.

The increased use of natural gas in South Africa is not without its difficulties and dangers, though. The environmental effects of gas production, particularly in relation to hydraulic fracturing, or 'fracking,' are one of the main worries. Fracking has been strongly opposed by environmental organisations and local communities in South Africa because of its links to water, air, and greenhouse gas pollution.

Building the infrastructure required for the import, storage, and distribution of natural gas represents another difficulty.

Government, the private sector, and international partners will all need to put a lot of money into this and coordinate their efforts. With plans to create a gas infrastructure roadmap and a specific gas-to-power procurement programme, the South African government has already taken action to address this issue.

To sum up, natural gas has the potential to be a key player in South Africa's energy transition, assisting in the diversification of the nation's energy mix, reducing its reliance on coal, and fostering the development of renewable energy. But it will take careful planning, money, and cooperation from all parties involved for natural gas to be successfully incorporated into South Africa's energy system.