South Africa Faces an Energy Dilemma
Bloomberg Markets|August - September 2021
POWER FAILURES have become routine in South Africa. At the same time, the country wants to wean itself off the coal that generates more than 80% of its electricity and makes it the world’s 12th-biggest source of greenhouse gases.
PAUL BURKHARDT
South Africa Faces an Energy Dilemma

Most of South Africa’s power stations are near the end of their lives. An average of about 1,000 megawatts of capacity is set to be decommissioned annually over the next decade, which presents an ideal opportunity to begin overhauling the energy system. The question is how.

The government aims to cut emissions to net-zero by 2050. Its energy blueprint envisions the construction of scores of solar and wind-powered plants. But there are widespread doubts that those projects can happen fast enough, or be reliable enough, to replace coal. So a controversial fossil fuel remains part of the planned energy mix: natural gas.

“Electricity capacity will have to be replaced,” Mineral Resources Minister Gwede Mantashe said on June 11 during an interview in Mozambique’s capital, Maputo, where he suggested that new pipelines could be built to tap more natural gas from the country’s offshore fields. “Gas is an alternative,” he said. “It can be a game-changer.”

PLANS TO USE natural gas to produce at least a quarter of almost 12,000MW of additional power by 2030 are hotly contested. The fuel generates less than half the greenhouse gases that coal does, but replacing the dirtiest fossil fuel with a cleaner one will make South Africa’s emissions target difficult to meet.

Financing for gas-fired plants may also be hard to come by. Several development finance institutions, which are crucial funders of many energy projects in Africa, are revising their investment mandates to exclude the fuel. South Africa may have to rely on companies such as General Electric Co. and Exxon Mobil Corp. that have expressed interest in developing the new gas projects.

Denne historien er fra August - September 2021-utgaven av Bloomberg Markets.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August - September 2021-utgaven av Bloomberg Markets.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BLOOMBERG MARKETSSe alt
See Which Countries Are Falling Behind On Climate Change
Bloomberg Markets

See Which Countries Are Falling Behind On Climate Change

Under the Paris Agreement, 190 countries and the European Union pledged to take steps to hold the global temperature rise to less than 2C (3.6F) from preindustrial levels—and preferably 1.5C.

time-read
4 mins  |
October - November 2021
Billionaires Vie for the Future of Brazilian Finance
Bloomberg Markets

Billionaires Vie for the Future of Brazilian Finance

An escalating battle between two billionaires is upending the financial community in São Paulo, Latin America’s wealthiest city.

time-read
8 mins  |
October - November 2021
Ford Foundation's Darren Walker: ‘We Have to Get Uncomfortable'
Bloomberg Markets

Ford Foundation's Darren Walker: ‘We Have to Get Uncomfortable'

DARREN WALKER, 62, disrupted his Wall Street life more than 25 years ago when he left what is now UBS Group AG to volunteer at a school and eventually pursue a career in community development and philanthropy. Since 2013 he’s been at the pinnacle of the philanthropic world as president of the Ford Foundation, created by the family of automaker Henry Ford during the Great Depression to advance human welfare.

time-read
8 mins  |
October - November 2021
Fueling the Ener Transition
Bloomberg Markets

Fueling the Ener Transition

I MAY BE BIASED, but some of the most important research and data on the Bloomberg terminal lies in one of its lesser-known functions: {BNEF }

time-read
1 min  |
October - November 2021
Dig Into Analysts' Estimates for Disruptive Companies
Bloomberg Markets

Dig Into Analysts' Estimates for Disruptive Companies

THE PANDEMIC ERA generated a whole wave of disruptive companies as it accelerated the introduction of new products and services in areas including artificial intelligence, digitization, electronic payments, online meeting platforms, and virtual currencies.

time-read
4 mins  |
October - November 2021
Climate Risks Come for Sovereign Credit
Bloomberg Markets

Climate Risks Come for Sovereign Credit

FOR YEARS climate scientists have warned about the ferocious wildfires and hurricanes that are now overwhelming many communities. Today alarms are ringing about a related financial danger: risks lurking within government bonds, the biggest part of the global debt market.

time-read
7 mins  |
October - November 2021
Responsible-Investing Pioneer Lydenberg Says ESG Needs An Upgrade
Bloomberg Markets

Responsible-Investing Pioneer Lydenberg Says ESG Needs An Upgrade

STEVE LYDENBERG’S passion for social change was inspired by anti-Vietnam War demonstrations, consumer boycotts, and the movement to divest from apartheid South Africa. But he didn’t take to the streets. Instead, Lydenberg turned to the world of finance to help catalyze societal change.

time-read
8 mins  |
October - November 2021
Engine No. 1's Grancio: ‘People Will Appreciate an Economic Argument'
Bloomberg Markets

Engine No. 1's Grancio: ‘People Will Appreciate an Economic Argument'

ENGINE NO. 1 sent shock waves across corporate America in May when the fledgling investment firm won a boardroom battle with Exxon Mobil Corp., securing three seats on the oil and gas giant’s board after purchasing only about $40 million of its stock.

time-read
6 mins  |
October - November 2021
Find Out Which Companies May Ramp Up Payouts After Covid
Bloomberg Markets

Find Out Which Companies May Ramp Up Payouts After Covid

AS THE PANDEMIC DISRUPTED business last year, many companies cut or suspended dividends. Which will boost their payouts when economies pick up again?

time-read
2 mins  |
October - November 2021
Get Into the Minds of Central Bankers as They Navigate Shocks
Bloomberg Markets

Get Into the Minds of Central Bankers as They Navigate Shocks

HAVE YOU EVER WONDERED how central bankers forecast the impact of shocks on the economy?

time-read
4 mins  |
October - November 2021