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Home › Dodgy Deals ›
Dodgy Deal
EskomSouth Africa

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Last update: 2018-08-28 12:16:43
One of Eskom's coal power plants, the Majuba coal power plant in Mpumalanga, South Africa. Photo: Gavin Fordham via Flickr (CC BY-NC 2.0)

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Last update: 2018-08-28 12:16:43
Why this profile?

Why this profile?

Eskom is part of a group of 31 companies which are responsible for half the world's installed coal power capacity of 983,000 MW. The adverse impacts on people and the environment of Eskom's existing coal power plants (with a total capacity of 36,134MW) are completely at odds with the Paris Climate Agreement which calls for a maximum of 1.5C to global temperatures rises.

About
Sectors Coal Electric Power Generation, Nuclear Electric Power Generation
Headquarters
Ownership

Eskom is wholly owned by the South African government.

Subsidiaries
Website http://www.eskom.co.za

Eskom is a South-African energy company, founded in 1923, and the world's eleventh-largest power utility in terms of generating capacity. In 2017 it had an installed generating capacity of 44,134 MW, of which 36,441 MW (82.5%) was from coal power plants and 1,860 MW from nuclear power. Eskom generates, transports and distributes approximately 90% of South Africa's electricity and approximately 40% of the electricity consumed in the whole African continent.

Impacts

Social and human rights impacts

Air pollution from burning fossil fuels has a wide range of effects on health, including mortality and cardiovascular and respiratory illness. A 2017 summary report (based on M. Holland's 2017 report Health impacts of coal fired power plants in South Africa) lists the health impacts of Eskom's coal power plants. Each year they are responsible for causing 2,239 premature deaths, 2,781 cases of chronic bronchitis in adults, 9,533 cases of children bronchitis and several other negative health impacts. The total cost associated with these impacts exceeds USD 2.3 billion.


Environmental and climate impacts

According to Eskom's 2018 integrated annual report for the period of March 2017 to March 2018, it was responsible for emitting 205.5 million tonnes of CO2, produced 31.65 million tonnes of ash and emitted 57.13 kilotonnes of particulates. The adverse impacts on the environment and climate change are tied directly to the amount of carbon dioxide released, including from coal power plants. Consequences to global warming include drought, sea level rise, flooding, extreme weather, and species loss.

Environmental groups are taking on Eskom after the company applied for another postponement to regulations that would reduce pollution from one of their power plants. The Highveld Environmental Justice Network and the Life After Coal Campaign‚ which includes the Centre for Environmental Rights (CER)‚ Earthlife Africa Johannesburg and groundWork‚ objected to Eskom applying for a postponement for their Tutuka power station - near Standerton in Mpumalanga - to comply with the minimum emission standards (MES).


Other impacts

Incidents at Koeberg Eskom's nuclear plant Koeberg has seen its share of incidents. In December 2005 a foreign object caused damage to one of the reactors' generators. It had been left inside by poorly trained and inadequately supervised workers. A similar incident happened in February 2006 when one of the reactors was forced to shut down causing blackouts on the Western Cape. The then Minister of Trade and Industry blamed an organisation called the Imam Haroon Brigade. The Brigade claimed responsibility for the sabotage. Both the minister and the Brigade were guilty of storytelling: there was no sabotage and the shutdown had been caused by human error.

Likely conflict of interest behind coal contracts and projects in South Africa The 355-page State of Capture report from South Africa’s Public Protector reveals details of favorable decisions by state utility Eskom to award huge coal supply contracts to Tegeta Exploration and Resources, a company co-owned by the son, Duduzane, of (former) South African President Jacob Zuma, and the Gupta family, close friends of Jacob Zuma. The revelations add new fuel to longstanding suspicion about the role of government leaders and relatives of former President Zuma with ties to the coal industry in paving the way for new coal mining and new coal-fired power plants in the face of serious water use, pollution and economic concerns. According to a Circle of Blue investigative report, “the ANC operates an investment arm, called Chancellor House, that owned an investment stake in Hitachi, which won the multi-billion dollar contracts to build the boilers for the two giant and unfinished Medupi and Kusile coal-fired power plants. Chancellor House also has a financial stake in the proposed 1,050-megawatt coal-fired Colenso power plant.” (corruptionincoal.org).

Financiers

Between 2014 and 2017 13 financial institutions have provided a total of USD 1.383 billion in loans and USD 1.251 billion in underwriting services to Eskom. The FIs involved are listed below.

In Februari 2018 Eskom signed a ZAR 20 billion (EUR 1.206 billion) credit facility involving seven banks (Eskom press release).

Institution type
Finance type
Year
Projects
There are no active project profiles for Eskom now.

Grand Inga dam

Congo, the Democratic Republic of the
Project
On record
Hydroelectric Power Generation

Grand Inga dam

Congo, the Democratic Republic of the

Kusile coal power plant

South Africa
Project
On record
Coal Electric Power Generation

Kusile coal power plant

South Africa

Medupi coal power plant

South Africa
Project
On record
Coal Electric Power Generation

Medupi coal power plant

South Africa
News
BankTrack
Partners
Blog
External
Blog
BankTrack news BankTrack blog Partner news Partner blog

Who is still financing the global coal industry?

New research reveals banks and investors behind the world’s worst climate offenders
2022-02-15 | Berlin | Urgewald
BankTrack news BankTrack blog Partner news Partner blog

Eskom was just denied a licence to pollute. Now it is worried about keeping the lights on

Eskom was recently named the worst sulphur dioxide polluter in the world – and it is barely even trying, according to a rejection letter
2021-12-14 | Business Insider South Africa
BankTrack news BankTrack blog Partner news Partner blog

Eskom named planet’s largest emitter

A new study released by the Center for Research on Energy and Clean Air (CREA) has named Eskom the world’s most polluting company, having overtaken the US, EU and China.
2021-10-07 | ESI Africa
BankTrack news BankTrack blog Partner news Partner blog

Some SA banks committed to fossil fuel disinvestment — others aim to keep coal and oil financing furnaces burning

2021-10-04 | Daily Maverick
BankTrack news BankTrack blog Partner news Partner blog

Eskom wants permission to keep on polluting

2018-03-19 | The Sunday Times
BankTrack news BankTrack blog Partner news Partner blog

Eskom’s other disaster: How 50 years of bad decisions led to the Mpumalanga Highveld’s bad air

2018-02-06 | The Daily Maverick
BankTrack news BankTrack blog Partner news Partner blog

Eskom: Kusile and Medupi projects should be put on ice

2017-11-19 | PoliticsWeb
BankTrack news BankTrack blog Partner news Partner blog

Air pollution from coal power stations causes disease and kills thousands of South Africans every year, says UK expert

2017-09-12 | Centre for Environmental rights
BankTrack news BankTrack blog Partner news Partner blog

Request for Eskom tariff increase of more than 25%

2015-03-20 | Business Day Live
BankTrack news BankTrack blog Partner news Partner blog

Public Panel Event- Waterberg Electricity

2014-05-26 | Earth Life
BankTrack news BankTrack blog Partner news Partner blog

Who's the boss? How Eskom plans to dupe South Africa

2014-02-12 | Earth Life
BankTrack news BankTrack blog Partner news Partner blog

‘Desperate’ Eskom burn-tests coal sample

2014-02-10 | Business Day Live
BankTrack news BankTrack blog Partner news Partner blog

Eskom CEO Quits as South African Utility Faces Blackout Threats

2013-12-05 | Bloomberg
BankTrack news BankTrack blog Partner news Partner blog

New Eskom power plant defies carbon cut pledge

2013-09-27 | Mail & Guardian
BankTrack news BankTrack blog Partner news Partner blog

Eskom faces coal conundrum

2013-09-20 | Business Day Live
BankTrack news BankTrack blog Partner news Partner blog

Medupi farce may cost trillion-plus

2013-07-10 | Business Day
BankTrack news BankTrack blog Partner news Partner blog

Eskom’s new power delayed to 2014

2013-07-08 | Business Report
BankTrack news BankTrack blog Partner news Partner blog

Medupi, Kusile contractors and unions reach agreement

2013-06-12 | MoneyWeb
BankTrack news BankTrack blog Partner news Partner blog

Medupi deadline will not change: Gigaba

2013-03-15 | The New Age
BankTrack news BankTrack blog Partner news Partner blog

Eskom: A company in distress

2013-03-04 | Daily Maverick
BankTrack news BankTrack blog Partner news Partner blog

High energy users deny subsidies

2013-01-21 | Business Day Live
BankTrack news BankTrack blog Partner news Partner blog

Nersa’s public hearings continue

2013-01-21 | Business Report
BankTrack news BankTrack blog Partner news Partner blog

Eskom uses spy agency to counter labour unrest

2013-01-20 | Business Day Live
BankTrack news BankTrack blog Partner news Partner blog

Medupi operations remain suspended

2013-01-17 | IOl news
BankTrack news BankTrack blog Partner news Partner blog

Medupi workers march to Eskom

2012-10-19 | Business Report
BankTrack news BankTrack blog Partner news Partner blog

Investing in water-less green solutions imperative

2012-10-17 | Business Day Live
BankTrack news BankTrack blog Partner news Partner blog

Barclays, HSBC and RBS linked to 'dirty financing' for fossil fuels

2011-06-14 | The Ecologist
BankTrack news BankTrack blog Partner news Partner blog

Eskom resumes Medupi construction after protests

2011-05-23 | South Africa | Reuters
BankTrack news BankTrack blog Partner news Partner blog

Down Eskom’s garden path

2011-05-18 | news24
BankTrack news BankTrack blog Partner news Partner blog

US bank set to approve Eskom loan for Kusile

2011-04-18 | BusinessDay
Blog
BankTrack news BankTrack blog Partner news Partner blog

U.S. Taxpayer-Funded Bank Should Follow the Doctor's Orders on Coal in South Africa

2011-03-18 | United States | Michelle Chan, Economic policy director, Friends of the Earth US
Blog
BankTrack news BankTrack blog Partner news Partner blog

Medupi (Afrique du Sud) : le Crédit Agricole finance un projet charbonnier climaticide

2010-10-14 | Paris | Les Amis de la Terre
Blog
BankTrack news BankTrack blog Partner news Partner blog

Medupi (South Africa): Crédit Agricole finances a climate destructive coal project

2010-10-14 | Paris | Les Amis de la Terre
Resources
Documents
Links
2021-10-31 00:00:00

Eskom is now the world’s most polluting power company

NGO document
2021-10-31 00:00:00 | Centre for Research on Energy and Clean Air
2018-03-31 00:00:00

Annual integrated report 2018

Annual report
2018-03-31 00:00:00 | Eskom
2017-10-31 00:00:00

Broken promises

The Failure of the Highveld Priority Area
NGO document
2017-10-31 00:00:00 | Centre for Environmental Rights, groundWork
2017-03-31 00:00:00

Health impacts of coal fired power plants in South Africa

Other document
2017-03-31 00:00:00 | M. Holland PhD (Ecometrics Research and Consulting)
2018-01-31 00:00:00

Air pollution from Eskom coal power plants

NGO document
2018-01-31 00:00:00 | Centre for Environmental Rights, groundWork
2017-03-31 00:00:00

Annual integrated report 2017

Annual report
2017-03-31 00:00:00 | Eskom
2015-05-04 00:00:00

The end of coal?

2015 Coal Finance Report Card
BankTrack publication
2015-05-04 00:00:00 | BankTrack, Rainforest Action Network, Sierra Club
2014-01-01 00:00:00

September 2013 Integrated interim report

Annual report
2014-01-01 00:00:00 | Eskom
2013-09-23 00:00:00

Coal Market Update September 2013

Governments and international financial institutions waking up to the dangers of coal investments
BankTrack publication
2013-09-23 00:00:00 | Greenpeace, BankTrack
2013-07-23 00:00:00

Coal Market Update July 2013

Low prices take their toll on coal firms
BankTrack publication
2013-07-23 00:00:00 | Greenpeace, BankTrack
2011-09-29 00:00:00

The external cost of coal-fired power generation

The case of Kusile
NGO document
2011-09-29 00:00:00 | Greenpeace
2011-03-11 00:00:00

Fossilized Thinking: The World Bank, Eskom, and the real cost of coal

NGO document
2011-03-11 00:00:00 | COEIL
2011-01-15 00:00:00

Kusile Power Project Factsheet

NGO document
2011-01-15 00:00:00 | Sierra Club
2010-04-03 00:00:00

Statement from South Africa and Africa civil society on Eskom's proposed USD3.75 billion World Bank loan

NGO document
2010-04-03 00:00:00 | Civil Society Organisations
2010-03-11 00:00:00

UK NGOs letter to UK government on World Bank vote on Medupi

NGO document
2010-03-11 00:00:00 | UK NGOs
2010-03-01 00:00:00

Eskom World Bank loan factsheet

NGO document
2010-03-01 00:00:00 | NGOs
2009-12-01 00:00:00

The World Bank and Eskom : Banking on Climate Destruction

NGO document
2009-12-01 00:00:00 | groundWork (FoE South Africa)
2009-03-01 00:00:00

GroundWork warning letter to the World Bank on Medupi

NGO document
2009-03-01 00:00:00 | groundWork and many other NGOs
2007-02-01 00:00:00

Kusile Environmental Impact Assessment

Company document
2007-02-01 00:00:00 | Eskom

Map of environmental conflicts linked to Eskom, by Environmental Justice

FoE US - A day’s journey through South African coal country

Blog post about a visit to see the construction area of the Kusile power plant.

Eskom's webpage on corporate social responsibility

Business & Human Rights Resource Centre dossier on Eskom

Life After Coal/Impilo Ngaphandle Kwamalahle

Campaign website by Earthlife Africa Johannesburg, groundWork, and the Centre for Environmental Rights

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