The Water Dividend: Reallocating water from coal-fired power plants and coal mines

By Megan Cole and Tracy Ledger Multiple policies and plans have been developed under South Africa’s JET to diversify the local economy and to create new employment and livelihood opportunities. This research report sets out an additional pathway whereby the intended socioeconomic benefits of the JET could be delivered, by repurposing the water infrastructure and bulk water allocations currently used by coal-fired stations and coal mining to support a wide range of new equitable development initiatives. Much has been said about expected impacts of the JET in South Africa on coal revenues, workers and communities. In contrast, very little has been said about the role of water in the JET and water allocation is an area that has so far not appeared in the national and provincial dialogues on the just transition. However, it is a crucial element of distributive justice – communities, farmers and small businesses all stand to lose out if existing water supply fails as Eskom and major mining companies leave the area and if their needs are not considered in future water allocations. The report provides a comprehensive assessment of the water use, water allocations, water efficiency and water governance in Mpumalanga’s coal region, and explores the potential establishment of a new water utility to support the JET, by making that water available to address shortfalls in specific areas, leveraging the existing Eskom water infrastructure. The focus of the research is the five oldest coal power plants in South Africa, namely Komati (decommissioned in 2022), Camden, Grootvlei, Hendrina and Arnot, which are all expected to be decommissioned by 2030. The plants are situated in Steve Tshwete, Msukaligwa and Dipaleseng local municipalities in Mpumalanga.