DOCSLIB.ORG

The Socio-Economic Impacts of Medupi Power Station on Lephalale

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
The Socio-Economic Impacts of Medupi Power Station on Lephalale The Socio-Economic Impacts of Medupi Power Station on Lephalale Thembi Nyembe Research Report Submitted in partial fulfilment of the requirements for the degree of Master of Management in Public Policy University of the Witwatersrand School of Governance Supervisor Prof. Patrick Bond THE SOCIO-ECONOMIC IMPACTS OF MEDUPI POWER STATION i DECLARATION I declare that this research report is my own, unaided work. It is submitted in partial fulfilment of the requirements for the Masters of Management Public Policy degree at the University of Witwatersrand, Johannesburg. It has not been submitted before for any degree or examination at any other University. (Signature of candidate) THE SOCIO-ECONOMIC IMPACTS OF MEDUPI POWER STATION ii ABSTRACT The minerals-energy complex development has generated divergent interests between profit- making entities and the communities rebelling for a stake in the economic benefits of the rural town of Lephalale in Limpopo Province. The expanding minerals-energy complex in Lephalale is attractive to major domestic and global corporations. However, the Lephalale Local Municipal authority is proving to be powerless to deal with the socio-economic challenges set off by the investment. Eskom’s corporate social responsibility/investment is inadequate to deal with the socio-economically and ecologically-subjugated communities, which along with workers occasionally resort to violent protest. This case site allows exploration of a contrasting “post-positivist approach” which acknowledges the vital role of conflict and political actors in public policy and project implementation. It further explores the “positivist approach” which leads some to consider markets as the most effective means for social decisions, hence a reliance on Eskom’s corporate investments to offset damages. This qualitative research employs primary and secondary documents as well as interviews to describe the socio-economic impacts of Eskom’s Medupi Power Station on Lephalale. THE SOCIO-ECONOMIC IMPACTS OF MEDUPI POWER STATION iii TABLE OF CONTENTS Page DECLARATION ............................................................................................................. i ABSTRACT ................................................................................................................... ii TABLE OF CONTENTS ................................................................................................ iii ABBREVIATIONS ........................................................................................................ vi LIST OF TABLES/ GRAPHS/ MAPS/ DIAGRAMS ..................................................... viii CHAPTER 1: INTRODUCTION .................................................................................... 1 1.1 Introduction ......................................................................................................... 1 1.2 Structure of the research project .......................................................................... 2 1.3 Background to the study ....................................................................................... 3 1.4 Context of the research ......................................................................................... 4 1.4.1 Historical background of Lephalale ................................................................................... 4 1.4.2 Eskom’s Background ......................................................................................................... 7 1.4.3 The future energy mix ........................................................................................................ 9 1.4.4 Eskom’s socio-economic development programmes ....................................................... 11 1.4.5 Motivation ........................................................................................................................ 14 1.5 Scope of the study .............................................................................................. 15 1.6 Research questions ............................................................................................. 15 1.7 Aims and objectives ............................................................................................ 15 1.8 Literature review ............................................................................................... 16 1.8.1 Causes and effects of mega-project infrastructure ........................................................... 16 1.9 Method and techniques ....................................................................................... 19 1.10 Data collection ................................................................................................... 21 1.10.1 Interview guidelines ......................................................................................................... 21 1.10.2 Document analysis ........................................................................................................... 22 1.11 Data analysis and interpretation ......................................................................... 22 1.12 Conclusion ......................................................................................................... 23 CHAPTER 2: LITERATURE REVIEW ....................................................................... 24 2.1 Introduction ....................................................................................................... 24 2.2 Approaches to the study of public policy ............................................................. 25 2.2.1 Positivist and post-positivist approaches to the study of policy analysis ......................... 26 2.3 The policy process approach ............................................................................... 28 2.4 Networks as an analytical tool ............................................................................. 30 2.5 Dimensions of power .......................................................................................... 32 2.5.1 The decisional approach ................................................................................................... 32 THE SOCIO-ECONOMIC IMPACTS OF MEDUPI POWER STATION iv 2.5.2 Non-decision making ....................................................................................................... 34 2.5.3 The third dimension of power .......................................................................................... 35 2.6 Conclusion ......................................................................................................... 36 CHAPTER 3: THE SOCIO-ECONOMIC IMPACTS OF MEDUPI ON LEPHALALE ... 38 3.1 Introduction ....................................................................................................... 38 3.2 The development agenda .................................................................................... 38 3.2.1 The National Development Plan vision 2030 ................................................................... 38 3.2.2 Common features of mega-project development.............................................................. 40 3.3 The future development of Lephalale .................................................................. 41 3.4 The minerals-energy complex ............................................................................. 43 3.5 Funding mega-project development .................................................................... 46 3.6 Public participation ............................................................................................ 47 3.7 Socio-economic impacts of Medupi ..................................................................... 49 3.7.1 The socio-economic outlook of Lephalale ....................................................................... 49 3.7.2 Local economic benefits ................................................................................................... 50 3.7.3 Growth of municipal rates ................................................................................................ 52 3.7.4 Influx for project labour ................................................................................................... 52 3.7.5 Standard of living ............................................................................................................. 53 3.7.6 High wages ....................................................................................................................... 54 3.7.7 Unemployable labourers ................................................................................................... 55 3.7.8 Psychological displacement.............................................................................................. 56 3.8 Contested and non-contested policy issues ........................................................... 56 3.8.1 Environmental factors ...................................................................................................... 56 3.8.2 Economic factors .............................................................................................................. 57 3.9 Non-contested issues ........................................................................................... 58 3.9.1 Water shortage .................................................................................................................. 58 3.9.2 Distribution of water ........................................................................................................ 60 3.10 Agriculture and energy trade-off
Load more

Recommended publications
  • The Case of Kusile FINAL
    THE EXTERNAL COST OF COAL -FIRED POWER GENERATION: The case of Kusile Prepared by: • Business Enterprises at University of Pretoria (Pty(Pty)) LLtLtdtdd Prepared for: • Greenpeace Africa and Greenpeace International DATE: 29 September 2011 PO Box 14679 Hatfield 0028 University of Pretoria Main Campus, Prospect Street, Hatfield, Graduate Centre, Ground Floor, Entrance 1.82 T: +27 (12) 420 4245 F: +27 (12) 362 5270 TABLE OF CONTENTS 1. Introduction 5 2. Background, problem statement and study limitations 7 3. The externality cost of coal-fired power generation: a sectoral overview 9 3.1 Health 9 3.2 Climate change 11 3.3 Water 13 3.4 Mining 15 4. Results 17 5. Conclusion 19 6. References 21 NOTE: For access to the annexes listed below, please refer to the Greenpeace Africa website: www.greenpeaceafrica.org Annex 0 (Background): Coal and coal-fired power generation in South Africa Annex 1: The health costs of coal-fired power generation in South Africa Annex 2: Climate change: the opportunity cost of Medupi and Kusile power stations Annex 3: Estimating the opportunity cost of water for the Kusile and Medupi coal-fired electricity power plants in South Africa Annex 4: The external costs of coal mining: the case of collieries supplying Kusile power station ACKNOWLEDGEMENTS The authors gratefully acknowledge comments provided by the Greenpeace Africa and Greenpeace International review teams, and by four workshop panellists, Prof Jane Olwoch, Prof Kuku Voyi, Prof Ban Farrell and Mr Meiring du Plessis. This research was financially supported
    [Show full text]
  • Energy and Water
    ENERGY AND WATER 137 Pocket Guide to South Africa 2011/12 ENERGY AND WATER Energy use in South Africa is characterised by a high level of dependence on cheap and abundantly available coal. South Africa imports a large amount of crude oil. A limited quantity of natural gas is also available. The Department of Energy’s Energy Policy is based on the following key objectives: • ensuring energy security • achieving universal access and transforming the energy sector • regulating the energy sector • effective and efficient service delivery • optimal use of energy resources • ensuring sustainable development • promoting corporate governance. Integrated Resource Plan (IRP) The IRP lays the foundation for the country’s energy mix up to 2030, and seeks to find an appropriate balance between the expectations of different stakeholders considering a number of key constraints and risks, including: • reducing carbon emissions • new technology uncertainties such as costs, operability and lead time to build • water usage • localisation and job creation • southern African regional development and integration • security of supply. The IRP provides for a diversified energy mix, in terms of new generation capacity, that will comprise: • coal at 14% (government’s view is that there is a future for coal in the energy mix, and that it should continue research and development to find ways to clean the country’s abundant coal resources) • nuclear at 22,6% • open-cycle gas turbine at 9,2% and closed-cycle gas turbine at 5,6% • renewable energy carriers, which include hydro at 6,1%, wind at 19,7%, concentrated solar power at 2,4% and photovoltaic at 19,7%.
    [Show full text]
  • New Build News
    New BuildNews Issue 4 January 2008 Introduction This is a monthly update on Eskom's current new build projects. This includes both power station and transmission line projects. For further details, please email [email protected] Project Update Ankerlig Open Cycle Gas Turbine Station Location: Atlantis, Industrial Area, north of Cape Town This station has been in full commercial operation since 25 June 2007 - four units rated at 148 MW each are now being operated by Eskom's Generation Division. The total output for both OCGT stations is 1 036MW - 592 MW at Ankerlig and 444 MW at Gourikwa. The building of five additional units of 150 MW each at Ankerlig started on 8 August 2007. The team has completed the groundwork for the high-voltage yard and the base for the one fuel tank. The construction team is currently completing drains, building a base for the second fuel tank and installing power for the construction site. Gourikwa Open Cycle Gas Turbine Station Location: Petro SA area, west of Mossel Bay The first sod was turned on 24 January 2006, and the station has been in full commercial operation since 8 June 2007 - three units rated at 148 MW each are now being operated by Eskom's Generation Division. The second phase involves the building of two more 150 MW Units. Earthworks started on 24 September 2007. Construction has started on the new The ground and terrace work for the high-voltage yard, terrace level and drainage has units at Gourikwa power station started. Medupi power station Location: To the west of Lephalale, Limpopo Province This is a coal fired power plant project comprising of 6 units rated in total at 4 788MW installed capacity.
    [Show full text]
  • Transmission Ten-Year Development Plan 2013-2022 Transmission Ten-Year Plan 2013 – 2022 > FOREWORD by GROUP EXECUTIVE
    Transmission Ten-Year Development Plan 2013-2022 Transmission Ten-Year Plan 2013 – 2022 > FOREWORD BY GROUP EXECUTIVE “I would also like to take this opportunity to thank the team that has worked and continues to work on the development of these plans.” A reliable electricity supply of acceptable quality is essential for the developed by Eskom and IPPs must be connected to the network. economic development of South Africa. It is also a prerequisite The first two phases of preferred bidders for the Department for socio-economic development, as it paves the way to access to of Energy’s REFIT renewable energy programme (wind, solar education, improved nutrition and health care, and jobs, amongst photovoltaic, solar thermal, etc.) have been announced to help others. The transmission system plays a vital role in the delivery meet South Africa’s commitment to reduce carbon emissions. of a reliable, high quality electricity supply throughout South Africa Thirdly, new loads need to be connected to the network. and the region, by delivering electricity in bulk to load centres The provision of a reliable electricity supply, which will enable South and very large end-users. From there, the distribution networks Africa to meet its economic growth targets, requires significant owned by Eskom and municipalities deliver electricity to end-users. capital investment, which is ultimately funded by electricity The transmission system needs to be well-maintained to deliver a consumers through the tariff. There is a need for stakeholders reliable supply of electricity, and it also needs to be strengthened to understand what is required to ensure a reliable and secure to meet changing customer needs.
    [Show full text]
  • Spatial Transformation: Are Intermediate Cities Different? South African Cities Network: Johannesburg
    CENTRE FOR DEVELOPMENT SUPPORT SENTRUM VIR ONTWIKKELINGSTEUN ACKNOWLEDGEMENTS Lead authors: Lochner Marais (University of the Free State) Danie Du Plessis (Stellenbosch University) Case study authors: Drakenstein: Ronnie Donaldson (Stellenbosch University) King Sabata Dalindyebo: Esethu Ndzamela (Nelson Mandela University) and Anton De Wit (Nelson Mandela University Lephalale: Kgosi Mocwagae (University of the Free State) Matjhabeng: Stuart Denoon-Stevens (University of the Free State) Mahikeng: Verna Nel (University of the Free State) and James Drummond (North West University) Mbombela: Maléne Campbell (University of the Free State) Msunduzi: Thuli Mphambukeli (University of the Free State) Polokwane: Gemey Abrahams (independent consultant) Rustenburg: John Ntema (University of South Africa) Sol Plaatje: Thomas Stewart (University of the Free State) Stellenbosch: Danie Du Plessis (Stellenbosch University) Manager: Geci Karuri-Sebina Editing by Write to the Point Design by Ink Design Photo Credits: Page 2: JDA/SACN Page 16: Edna Peres/SACN Pages 18, 45, 47, 57, 58: Steve Karallis/JDA/SACN Page 44: JDA/SACN Page 48: Tanya Zack/SACN Page 64: JDA/SACN Suggested citation: SACN. 2017. Spatial Transformation: Are Intermediate Cities Different? South African Cities Network: Johannesburg. Available online at www.sacities.net ISBN: 978-0-6399131-0-0 © 2017 by South African Cities Network. Spatial Transformation: Are Intermediate Cities Different? is made available under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by-nc-sa/4.0/. 2 SPATIAL TRANSFORMATION: ARE INTERMEDIATE CITIES DIFFERENT? Foreword As a network whose primary stakeholders are the largest cities, the South African Cities Network (SACN) typically focuses its activities on the “big” end of the urban spectrum (essentially, mainly the metropolitan municipalities).
    [Show full text]
  • Written Statement of Mxolisi Mgojo, the Chief Executive Officer Of
    1 PUBLIC ENTERPRISES PORTFOLIO COMMITTEE INQUIRY INTO ESKOM, TRANSNET AND DENEL WRITTEN STATEMENT OF MXOLISI MGOJO, THE CHIEF EXECUTIVE OFFICER OF EXXARO RESOURCES LIMITED INTRODUCTION ...................................................................................................... 2 COST-PLUS MINES VERSUS COMMERCIAL MINES .......................................... 5 THE SO-CALLED “PRE-PAYMENT” FOR COAL ................................................. 9 PREJUDICE TO EXXARO’S COST-PLUS MINES AND MAFUBE ..................... 11 Introduction ........................................................................................................... 11 Arnot mine ............................................................................................................. 12 Eskom’s failure to fund land acquisition ................................................................. 12 Non-funding of operational capital at Arnot ............................................................ 14 The termination of Arnot’s CSA .............................................................................. 15 Conclusion of the Arnot matters ............................................................................. 19 Mafube mine.......................................................................................................... 19 Matla mine ............................................................................................................. 21 Non-funding of capital of R1.8 billion for mine 1 ...................................................
    [Show full text]
  • International Bank for Reconstruction and Development International Development Association
    International Bank for Reconstruction and Development International Development Association INSP/64977-ZA MANAGEMENT REPORT AND RECOMMENDATION IN RESPONSE TO THE INSPECTION PANEL INVESTIGATION REPORT SOUTH AFRICA ESKOM INVESTMENT SUPPORT PROJECT (IBRD LOAN NO. 78620-ZA) March 2, 2012 MANAGEMENT REPORT AND RECOMMENDATION IN RESPONSE TO THE INSPECTION PANEL INVESTIGATION REPORT OF THE SOUTH AFRICA ESKOM INVESTMENT SUPPORT PROJECT (IBRD LOAN NO. 78620-ZA) Pursuant to paragraph 23 of the Resolution Establishing the Inspection Panel (IBRD Resolution 93-10 and IDA Resolution 93-6), attached for consideration by Executive Directors is Management’s Report and Recommendation in response to the findings set out in the Investigation Report No. 64977-ZA dated November 21, 2011, of the Inspection Panel on the captioned Project (Eskom Investment Support Project, IBRD Loan No. 78620-ZA). MANAGEMENT REPORT AND RECOMMENDATION IN RESPONSE TO THE INSPECTION PANEL INVESTIGATION REPORT NO. 64977-ZA SOUTH AFRICA ESKOM INVESTMENT SUPPORT PROJECT (IBRD LOAN NO. 74920-ZA) CONTENTS Abbreviations and Acronyms ............................................................................................ iv Executive Summary ............................................................................................................ v I. Introduction ............................................................................................................. 1 II. The Project .............................................................................................................
    [Show full text]
  • Waterberg-Bojanala Priority Area Air Quality Management Plan: Threat Assessment
    Part 2 Waterberg-Bojanala Priority Area Air Quality Management Plan: Threat Assessment This report has been produced for the Department of Environmental Affairs by uMoya-NILU Consulting (Pty) Ltd. The authors are Mark Zunckel, Atham Raghunandan, Sarisha Perumal, Yegeshni Moodley and Benton Pillay. No part of the report may be reproduced in any manner without written permission from the Department of Environmental Affairs. This document should be cited as follows: Department of Environmental Affairs (DEA), 2014: Waterberg-Bojanala Priority Area Air Quality Management Plan: Threat Assessment, December 2014. ii EXECUTIVE SUMMARY The Minister of Water and Environmental affairs declared the Waterberg–Bojanala Priority Area (WBPA) on 15 June 2012 as the third National Priority Area (DEA, 2012a). The WBPA includes the Waterberg District Municipality (WDM) in the Limpopo Province and parts of the Bojanala Platinum District Municipality (BPDM) in the North West Province, and borders on Botswana. The WDM and Botswana have significant coal reserves that are largely unexploited with the Matimba Power Station and Morupule Power Station currently in operation. As a result, ambient air quality is relatively good. The National Development Plan 2030 (National Planning Commission, 2012), acknowledges that the lack of stable power to meet the energy demands is an impediment to economic growth in the region, proposing Strategic Infrastructure Projects (SIPs) to accelerated growth and development in the WDM. In addition, the Government of Botswana requires that the energy sector be augmented through the development of new coal-fired power plant generation capacity. The energy-based development initiatives in South Africa and Botswana pose a threat to the current state of ambient air quality in the region.
    [Show full text]
  • 2. DESCRIPTION of the PROPOSED PROJECT In
    Environmental Scoping Report for the proposed establishment of a New Coal-Fired Power Station in the Lephalale Area, Limpopo Province 2. DESCRIPTION OF THE PROPOSED PROJECT In order to be able to adequately provide for the growing electricity demand, Eskom propose to construct a new power station with a maximum capacity of 4 800 MegaWatts (MW) in the Lephalale area in the vicinity of the existing Matimba Power Station. Currently the project name for the new proposed power station is Matimba B, but the name will be changed should the project be approved. The power station will be coal-fired, and source coal from local coalfields. 2.1 The Proposed Matimba B Power Station Matimba B Power Station is proposed to ultimately have a maximum installed capacity of up to 4800 MW, but the first phase to be constructed and operated will be approximately half that installed capacity. The exact output will depend on the specification of the equipment installed and the ambient operating conditions. The footprint of the proposed new power station is still to be determined through final engineering and design, but has been indicated by Eskom that the new facility will be similar in size (ground footprint) to the existing Matimba Power Station. The power plant and associated plant (terrace area) would require an area of approximately 700 ha, and an additional approximate 500 - 1000 ha would be required for ancillary services, including ashing facilities (alternate ash disposal options are, however, currently being investigated). It is envisaged that the proposed power station will utilise a range of technologies pertaining to cooling, combustion and pollution abatement.
    [Show full text]
  • Literature Review: Public Health and Ecological Effects of Substances Emitted to Air from Power Plants Documents Published 2013-2020
    REPORT Literature Review: Public Health and Ecological Effects of Substances Emitted to Air from Power Plants Documents Published 2013-2020 Submitted to: Katie Duffett, Project Manager, Clean Air Strategic Alliance 9915-108 Street NW, 1400 Edmonton, Alberta T5K 2G8 Submitted by: Golder Associates Ltd. Suite 200 - 2920 Virtual Way, Vancouver, British Columbia, V5M 0C4, Canada +1 604 296 4200 20397046-001-R-Rev0 18 March 2021 Classification: Protected A 18 March 2021 20397046-001-R-Rev0 Distribution List 1 e-copy Clean Air Strategic Alliance - Health and Environmental Assessment Task Group (HEAT Group) 1 e-copy Golder Associates Ltd. i Classification: Protected A 18 March 2021 20397046-001-R-Rev0 Executive Summary Golder Associates Ltd. (Golder) was retained by the Clean Air Strategic Alliance (CASA) to conduct a literature review on the public health and ecological effects of substances known to be emitted into the air from electricity generation using various resource types (e.g., coal, biomass, fuel oil, waste) from power plants (not limited to stack emissions). The objective of the literature review was to identify new information published from 2013 to 2020 to aid the 2018 Five-Year Review of the 2003 Emissions Management Framework for Alberta Electricity Sector. Golder conducted a search of white and grey literature for the literature review. White literature included primary peer-reviewed journal articles while grey literature included literature published by provincial, federal, and international organizations. Relevant articles were scored using the ‘Checklist for assessing the quality of quantitative studies' (herein referred to as the “Checklist”) developed at the Alberta Heritage Foundation for Medical Research1.
    [Show full text]
  • Air Quality Specialist Report for the Proposed Medupi Flue Gas Desulphurisation (FGD) Retrofit Project
    Air Quality Specialist Report for the Proposed Medupi Flue Gas Desulphurisation (FGD) Retrofit Project Project done on behalf of Zitholele Consulting Project Compiled by: R von Gruenewaldt L Burger G Kornelius Report No: 14ZIT10 | Date: February 2018 Address: 480 Smuts Drive, Halfway Gardens | Postal: P O Box 5260, Halfway House, 1685 Tel: +27 (0)11 805 1940 | Fax: +27 (0)11 805 7010 www.airshed.co.za Report Details Report No. 14ZIT10 Status Rev 1 Air Quality Specialist Report for the Proposed Medupi Flue Gas Desulphurisation (FGD) Report Title Retrofit Project Date December 2016 Client Zitholele Consulting Reneé von Gruenewaldt (Pr. Sci. Nat.). MSc (University of Pretoria) Prepared by Lucian Burger. PHD (University of Natal) Gerrit Kornelius. PHD (University of Pretoria) Airshed Planning Professionals (Pty) Ltd is a consulting company located in Midrand, South Africa, specialising in all aspects of air quality, ranging from nearby neighbourhood concerns Notice to regional air pollution impacts as well as noise impact assessments. The company originated in 1990 as Environmental Management Services, which amalgamated with its sister company, Matrix Environmental Consultants, in 2003. Airshed is an independent consulting firm with no interest in the project other than to fulfil the Declaration contract between the client and the consultant for delivery of specialised services as stipulated in the terms of reference. Unless otherwise noted, the copyright in all text and other matter (including the manner of presentation) is the exclusive property of Airshed Planning Professionals (Pty) Ltd. It is a Copyright Warning criminal offence to reproduce and/or use, without written consent, any matter, technical procedure and/or technique contained in this document.
    [Show full text]
  • Renewable Energy Choices and Their Water Requirements in South Africa
    Journal of Energy in Southern Africa 26(4): 80–92 DOI: http://dx.doi.org/10.17159/2413-3051/2014/v25i4a2241 Renewable energy choices and their water requirements in South Africa Debbie Sparks Amos Madhlopa Samantha Keen Mascha Moorlach Anthony Dane Pieter Krog Thuli Dlamini Energy Research Centre, University of Cape Town, Cape Town, South Africa Abstract tive of this study was to investigate and review South Africa is an arid country, where water supply renewable energy choices and water requirements is often obtained from a distant source. There is in South Africa. Data were acquired through a com- increasing pressure on the limited water resources bination of a desktop study and expert interviews. due to economic and population growth, with a Water withdrawal and consumption levels at a given concomitant increase in the energy requirement for stage of energy production were investigated. Most water production. This problem will be exacerbated of the data was collected from secondary sources. by the onset of climate change. Recently, there have Results show that there is limited data on all aspects been concerns about negative impacts arising from of water usage in the production chain of energy, the exploitation of energy resources. In particular, accounting in part for the significant variations in the burning of fossil fuels is significantly contributing the values of water intensity that are reported in the to climate change through the emission of carbon literature. It is vital to take into account all aspects of dioxide, a major greenhouse gas. In addition, fossil the energy life cycle to enable isolation of stages fuels are being depleted, and contributing to where significant amounts of water are used.
    [Show full text]