Hiccups in the repurposing of fossil fuel assets, exist in both the Global North and South alike. This came to light at a recently organized session by the Global Business Schools Network (GBSN) last week.
Most economies in the Global North were built on fossil fuels. It is the more established and affordable energy, with existing markets and competitive pricing, according to Wouter Jacob’s, Academic Director of the Leadership in commodity trade and supply networks in the Netherlands.
About alternative energy, he said “we need to develop more locations and sellers to countries to meet growing economies.”
He also said more investment needs to go into renewable energy and more especially the critical minerals associated with the emerging sector. They are copper, nickel and other rare earth related minerals.
The lengthy wait to obtain permits is another challenge in the Northern Hemisphere, as it goes against the urgency of meeting set decarbonization targets. “We have reached a construction lockdown, where projects are on hold for Co2.”
Speaking about the challenges facing the Global South in repurposing ageing fossil fuels assets,Thulani Gcabashe, Founder and Chairman of Built Africa Holdings, said Government has committed to decarbonize. That fossil fuels make up about 42,000 Megawatt of electricity in South Africa. ‘There are 2 power stations that are about to decommission. Then in the next 5 years or so, the majority will have to decarbonize.”
He also admitted that the Just Energy Transition, is seen by some as an imposition from the Global North.
Komati is part of the ageing fleet, built in 1966, and brought back to the system in 2012. Its repurposing is expected to yield 150 MW of solar and 70 MW of wind.
Phase 1 of this process is already out to tender.
Speaking about the possibility of financial challenges, Gcabashe said concessional soft loans are available and require policy reform. He also said funding that is available is inaccessible. He said this needs strategic partnerships and harmony in policies. “A classical example is the SKA array project.”