During July, work on the $3 billion Song Hau 2 coal power project was terminated by the Vietnam Ministry of Industry and Trade. The decision, according to the ministry, had to do with the developers’ financial issues. Others believe the modern 2.1-gigawatt (GW) power plant would have jeopardized an aid package promised to Vietnam to transition away from coal through the Just Energy Transition Partnership (JETP). Either way, it’s good news for the global climate change crowd and bad news for the people looking for reliable, low-cost power.
While this was happening, South Africa half a world away was sending signals that it might renege on its JETP commitments (See Leading Developments, p. 5). It was offered funding to close three more power stations. However, of the 46 renewable projects with a combined capacity 6 GW to replace them, only 150 MW have been connected. The country’s experience with decommissioning the Komati coal-fired power plant has created a great deal of animosity between the locals, who are now unemployed, and the green crowd promising a ‘just’ transition.
South Africa’s JETP emerged from COP 26 in Glasgow in 2021, when it was promised $8.5 billion in financing by France, Germany, the United Kingdom, the United States, and the European Union. Two more JETPs were announced for 2022, $15.5 billion for Vietnam and $20 billion for Indonesia. In 2023, $2.7 billion were pledged for a JETP with Senegal. Personally, I wouldn’t want my tax dollars going to a program like this and I’ll bet I’m not alone. The JETPs allow a small group of environmental zealots to sidestep formal U.N. climate talks, where countries that produce coal, oil and natural gas could veto the agreements.
The use of the terms ‘just’ and ‘partnership’ are purposely misleading. Just, as the environmental NGOs explain, means that the policies would be implemented in an equitable manner. For population centers that rely on coal-fired power, meaning mines, power plants and transportation systems, they would offer retraining and alternative business models based on the new renewable power sources to be implemented. The word ‘partnership,’ emphasizes that local governments have signed onto these deals.
In November 2022, the World Bank Group approved $497 million to decommission the Komati plant, repurpose the land with renewable energy, and other novel energy aspirations, and create new opportunities for workers and communities. The plant has been decommissioned, and the community feels it was unjustly forgotten.
