Wednesday, 01 July 2009

Cheap, Dirty, Addictive


Everyone is wining about the Eskom tariff hike. But cheap electricity has done more harm than good.

At approximately 21c/KWh, South Africa's electricity price was one of the lowest in the world. Cheap electricity may sound like a blessing in a country where large segments of the population are still not supplied with power at all, but cheap electricity has encouraged bad energy habits that may be much, much more costly in the long run than we realise.

A brief look into the secret history of South Africa's cheap electricity shines some uncomfortable light onto our current energy practices, and demonstrates the importance of nationwide, systematic change.

Fact: we are supplied almost exclusively by coal-produced electricity

Economic sanctions placed on the Apartheid government lead to an urgent desire for energy independence. Taking advantage of our rich mineral supplies, we developed a highly productive coal-based electricity production system. Because coal and cheap labour were both so readily available, this system was able to produce a large amount of electricity for a very low price. However, this came at an enormous human and environmental price.

Today, nearly 80% of our electricity is produced through coal-powered steam turbine generators. South Africa now produces 224 tones of marketable coal every year, making it the fifth largest coal-producing country in the world (and the third largest exporter).

The under-pricing of electricity has caused South Africans to become addicted to habits of energy wastage.

Fact: the real cost of electricity is higher than you think

Ash, sulphur, nitrogen oxides, organic compounds, heavy metals, radioactive elements, greenhouse gasses ... creating electricity out of coal results in more forms of waste than any other energy source.

Burning coal to make electricity releases large volumes of Carbon Dioxide, one of the main greenhouse gasses. South Africa is the 11th highest emitter of CO2 in the world, and is responsible for 40% of Africa's greenhouse gas emissions. Coal pollution not only contributes to global warming, but it also has disastrous local environmental effects: contributing to land degradation, acid rain and smog. Communities living close to coal power stations are at a high risk of health problems like respiratory diseases.

The cost of electricity that used to appear on our electricity bills was deceptively low. To get an accurate reflection of the cost of electricity, we should have been taking into account:
- the loss of agricultural revenue due to land degradation resulting from coal pollution
- the cost of healthcare for people affected by coal-pollution-induced respiratory diseases, and coal mining accidents
- the likely international tariffs and trade barriers currently in the pipeline for countries that do not comply with international environmental standards
- the loss to our economy is our energy usage continues to outstrip our supply, resulting in continued blackouts
- the possibility that South Africa's coal reserves could run out in the next 50-150 years

The increased cost of electricity will not only fund Eskom's new build programme; it will also bring it some way closer to accurately portraying the real costs of energy production.

Fact: we are not yet doing enough to cut back on energy wastage

In 2007, South Africans were warned that we needed to start saving 10% of our electricity usage every year for the next five years, or our energy supply would be threatened. In early 2008, periodic blackouts demonstrated to us all with no uncertainty that our reserve margin was unsustainably low. But by October 2008, we had only managed to generate a measly saving of 0.4%.

Over the long term, South Africa needs to invest in clean, renewable sources of energy. Our green technologies already lag far behind those of other emerging countries. Brazil has been extremely successful in developing solar home systems in rural areas, wind farms, biomass power and photovoltaics. India has set up an entire ministry of New and Renewable Energy, which is successfully co-ordinating government investment in renewable energy technologies. China has become one of the world's leading investors in renewable energy, and in 2005 invested US$6-billion in renewable energy solutions.

Fact: we are faced with an unprecedented opportunity to alter our energy addiction

South Africa has never been in a better position to change its energy habits. Because the true cost of electricity is finally being made real to us, we are beginning to take pro-active steps to curb our addiction to cheap, polluting electricity.

We can easily reach our 10% target simply by making small changes to our homes and habits. From there, the opportunity is ours to explore the renewable energy sources of the future.




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1 comment:

Anonymous said...

To compete in a tough global economy, and contribute to a sound environment, one of the most vital elements will be increased efficiency. Over the last 25 years, the U.S. economy has grown 110%, but energy consumption has grown by only 24%. Advocate for the operation of renewable energy projects by signing the Energy & Environment Petition at http://www.friendsoftheuschamber.com/takeaction/index.cfm?ID=41.