EELLEECCTTRRII CC CCAAPPIITTAALLIISSMM RR EE CCOO LL OO NN II SS II NN GG AA FF RR II CC AA OO NN TT HH EE PPOO WW EE RR GG RR II DD EEDDIITTEE DD BBYY DDAAVVII DD AA MM ccDDOO NN AA LLDD London • Sterling, VA Cape Town Free download from www.hsrcpress.ac.za First published in Southern Africa in 2009 by HSRC Press Private Bag X9182, Cape Town, 8000, South Africa www.hsrcpress.ac.za Published in the rest of the world in 2009 by Earthscan Dunstan House, 14a St Cross Street, London EC1N 8XA, UK 22883 Quicksilver Drive, Sterling, VA 20166-2012, USA www.earthscan.co.uk Earthscan publishes in association with the International Institute for Environment and Development. A catalogue record for this book is available from the British Library. Library of Congress Cataloging-in-Publication Data has been applied for. Distributed in Southern Africa by Blue Weaver Tel: +27 (0) 21 701 4477; Fax: +27 (0) 21 701 7302 www.oneworldbooks.com Distributed in the rest of the world by Earthscan Dunstan House, 14a St Cross Street, London EC1N 8XA, UK 22883 Quicksilver Drive, Sterling, VA 20166-2012, USA Tel: +44 (0)20 7841 1930 Fax: +44 (0)20 7242 1474 Email: earthinfo@earthscan.co.uk www.earthscan.co.uk © 2009 Human Sciences Research Council The views expressed in this publication are those of the authors. They do not necessarily reflect the views or policies of the Human Sciences Research Council (‘the Council’) or indicate that the Council endorses the views of the authors. In quoting from this publication, readers are advised to attribute the source of the information to the individual author concerned and not to the Council. Copyedited by Karen Press Typeset by Christabel Hardacre Cover by FUEL Design Printed on uncoated woodfree paper by Logo Print, Cape Town Southern Africa ISBN (soft cover) 978-0-7969-2237-3 Rest of the world ISBN (hard cover) 978-1-84407-714-4 Pdf ISBN 978-0-7969-2246-5 Free download from www.hsrcpress.ac.za Contents List of tables and figures v Acronyms and abbreviations viii Acknowledgements xiv Introduction: The importance of being electric xv David A McDonald 1 Electric capitalism: Conceptualising electricity and capital accumulation in (South) Africa 1 David A McDonald 2 Escom to Eskom: From racial Keynesian capitalism to neo-liberalism (1910–1994) 50 Leonard Gentle 3 Market liberalisation and continental expansion: The repositioning of Eskom in post-apartheid South Africa 73 Stephen Greenberg 4 Cheap at half the cost: Coal and electricity in South Africa 109 Richard Worthington 5 The great hydro-rush: The privatisation of Africa’s rivers 149 Terri Hathaway and Lori Pottinger 6 A price too high: Nuclear energy in South Africa 180 David Fig 7 Renewable energy: Harnessing the power of Africa? 202 Liz McDaid 8 Discipline and the new ‘logic of delivery’: Prepaid electricity in South Africa and beyond 229 Peter van Heusden Free download from www.hsrcpress.ac.za 9 Free basic electricity in South Africa: A strategy for helping or containing the poor? 248 Greg Ruiters 10 Power to the people? A rights-based analysis of South Africa’s electricity services 264 Jackie Dugard 11 Still in the shadows: Women and gender relations in the electricity sector in South Africa 288 Wendy Annecke 12 From local to global (and back again?): Anti-commodification struggles of the Soweto Electricity Crisis Committee 321 Prishani Naidoo and Ahmed Veriava 13 South African carbon trading: A counterproductive climate change strategy 338 Patrick Bond and Graham Erion 14 Electricity and privatisation in Uganda: The origins of the crisis and problems with the response 359 Christopher Gore 15 Connected geographies and struggles over access: Electricity commercialisation in Tanzania 400 Rebecca Ghanadan Conclusion: Alternative electricity paths for southern Africa 437 David A McDonald Epilogue 454 Appendix 1: Electricity 101 459 Derek Brine Appendix 2: Absolute and relative electricity profiles 479 Notes on contributors 484 Index 486 Free download from www.hsrcpress.ac.za List of tables and figures Tables Table 1 Benefits of electricity as they relate to the Millennium Development Goals xvii Table 1.1 Electrical appliance ownership in South Africa (percentages), by race, 2006 17 Table 1.2 Southern African Power Pool membership, 2006 31 Table 1.3 Electricity capacity in Africa, by region, 2005 33 Table 2.1 Electricity sales in South Africa, by company, 1939 55 Table 2.2 Electricity generation capacity growth in South Africa, 1961–1992 63 Table 4.1 Eskom’s coal-fired power stations, 2004 120 Table 4.2 IEA energy statistics for sub-Saharan African countries, 2003 125 Table 4.3 Toxic effects of selected power plant pollutants on humans 127 Table 4.4 Environmental impacts of Eskom electricity generation, 2004–2005 129 Table 4.5 Air emissions from South Africa’s main energy producers (tons), 2004 130 Table 4.6 Fuel combustion CO 2 emissions by intensity and per capita, 2000 131 Table 4.7 Sector emissions in South Africa, 1990 and 1994 131 Table 4.8 Summary of external costs of Eskom electricity generation, 1999 135 Table 4.9 Summary of external costs of Eskom electricity generation (per unit), 1999 136 Table 7.1 Job-creation potential of renewable and non-renewable energy technologies 206 Table 7.2 Comparative contribution of renewables to total energy demand (percentage), 2050 212 Table 7.3 Comparison of solar water heaters and the pebble bed technology nuclear reactor 213 Table 9.1 Energy used, by appliance 252 Table 9.2 Households receiving free basic electricity services from municipalities, 2003–2004 256 Table 13.1 Energy sector carbon emissions, 1999 352 Table 15.1 Shifts from state-led development to market-led provision in electricity 404 Table 15.2 Key elements of Tanzania’s electricity reforms, as of December 2006 405 Table 15.3 South African electricity prepayment meters in Africa, 2005 409 v Free download from www.hsrcpress.ac.za Table 15.4 A summary of Tanzania’s electricity sector development, 1908–2005 413 Table 15.5 Service connections, 2002–2005 422 Table 15.6 Household strategies for dealing with increasing energy costs 424 Table 15.7 Local electricity conditions in Manzese, Dar es Salaam, 2005 427 Table 16.1 Typology of public–public partnerships 446 Table A1.1 Resistivity of some materials at 20 °C 461 Table A1.2 Voltage and frequency standards in selected countries 465 Figures Figure 1.1 Projected time frames for electricity demand and capacity development in South Africa 30 Figure 1.2 Southern African Power Pool transmission networks (existing and planned) 32 Figure 1.3 African regional power pools – CAPP, EAPP, SAPP and WAPP 33 Figure 1.4 A continental distribution network 34 Figure 1.5 Planned Western Power Corridor Project 35 Figure 3.1 Eskom employment, 1990–2005 84 Figure 3.2 Eskom and local government electricity connections, 1991–2005 86 Figure 3.3 Average cost per connection, 1992–2006 88 Figure 3.4 Eskom Enterprises after-tax profit/loss, 2000–2005 92 Figure 3.5 Eskom in Africa, 2003 93 Figure 4.1 Sectoral breakdown of electricity use in South Africa (GWh), 2002 119 Figure 4.2 Electrical generation capacity of existing plants in South Africa, 1995–2055 121 Figure 4.3 Southern African recoverable coal reserves (million short tons), 2003 123 Figure 4.4 Employment in coal-based electricity generation in South Africa, 1980–2000 133 Figure 7.1 Comparison of carbon dioxide emissions per capita, 2001 204 Figure 7.2 Renewables scenario, 2050: how electricity demand would be met 207 Figure 14.1 Existing and proposed large hydro-electric facilities in Uganda 360 Figure 15.1 Political cartoon critiquing legitimacy of private electricity generators 411 Figure 15.2 Tanesco revenue collections, 2002–2005 416 Figure 15.3 Electricity disconnections, 2002–2005 417 Figure 15.4 Utility public relations announcements, 2005 419 Figure 15.5 Household cooking cost comparisons using various fuels, 1990 versus 2005 426 Figure A1.1 Fundamental electric generator 466 Figure A1.2 Typical commercial electric generator structure 467 Figure A1.3 The Rankine cycle 469 Figure A1.4 The Brayton cycle 472 E L E C T R I C C A P I TA L I S M : R E C O L O N I S I N G A F R I C A O N TH E P O W E R G R I D vi Free download from www.hsrcpress.ac.za Figure A1.5 Combined cycle gas-turbine 473 Figure A1.6 Hydro-electric power plant schematic 474 Figure A1.7 Electrons and current flow in solar cells 476 Figure A2.1 Access to electricity 480 Figure A2.2 Electricity production (all types) 480 Figure A2.3 Electricity production (hydro) 481 Figure A2.4 Electricity production (oil) 481 Figure A2.5 Electricity production (gas) 482 Figure A2.6 Electricity production (coal) 482 Figure A2.7 Electricity production (nuclear) 483 vii Free download from www.hsrcpress.ac.za viii Acronyms and abbreviations ACHPR African Charter on Human and Peoples’ Rights AEB Atomic Energy Board (1949–1970) AEC Atomic Energy Corporation (1970–1999) AES Allied Energy Systems AESNP AES Nile Power AfDB African Development Bank AFREC African Energy Commission AMEU Association of Municipal Energy Undertakings ANC African National Congress APF Anti-Privatisation Forum ARN African Rivers Network ASGISA Accelerated and Shared Growth Initiative for South Africa BEE black economic empowerment BPC Botswana Power Corporation BSA British South Africa Company CALS Centre for Applied Legal Studies CANSA Campaign Against Neoliberalism in South Africa CAPP Central African Power Pool CCS carbon capture and storage CCT City of Cape Town CDM Clean Development Mechanism CEDAW Convention on the Elimination of All Forms of Discrimination Against Women CEF Central Energy Fund CER Certified Emissions Reduction CESCR United Nations Committee on Economic, Social and Cultural Rights CHP combined heat and power generation COMESA Common Market for Eastern and Southern Africa COP Conference of Parties Cosatu Congress of South African Trade Unions CSIR Council for Scientific and Industrial Research DBSA Development Bank of Southern Africa DEAT Department of Environmental Affairs and Tourism DfID Department for International Development DG Director-General DME Department of Minerals and Energy DNA Designated National Authority Free download from www.hsrcpress.ac.za ix A C R O N Y M S A N D A B B R E V I AT I O N S DOE Designated Operational Entity DPE Department of Public Enterprises DPLG Department of Provincial and Local Government DRC Democratic Republic of the Congo DWAF Department of Water Affairs and Forestry EAC East African Community EAP&L East African Power and Lighting Company EAPP East African Power Pool ECB Electricity Control Board ECCAS Economic Community of Central African States ECOWAS Economic Community of West African States EDI Electricity Distribution Industry EdM Electricidade de Moçambique EDRC Energy for Development Research Centre EIA environmental impact assessment EIB European Investment Bank ENE Empresa Naçional de Electricidade ERA Electricity Regulatory Authority ERIC Electricity Restructuring Inter-departmental Committee ERP Economic Recovery Programme Escom/Eskom Electricity Supply Commission ESMAP Energy Sector Management Assistance Programme ESP electrostatic precipitator ET Africa Eskom Telecommunications Africa EU European Union EWG Electricity Working Group EWURA Energy and Water Utilities Regulatory Authority FBC fluidised bed combustion FBE free basic electricity FEMA Forum for Energy Ministers of Africa FGD flue gas desulphurisation GDP gross domestic product GE genetically engineered GEAR Growth, Employment and Redistribution strategy GECOL General Electricity Company of Libya GEPC General Electric Power Company Limited GESCO Global Electricity Services Company GHG greenhouse gas GHS General Household Survey GNU Government of National Unity GVA Gross Value Added HCB Hidroelectrica de Cahora Bassa HSRC Human Sciences Research Council IA Implementation Agreement Free download from www.hsrcpress.ac.za x E L E C T R I C C A P I TA L I S M : R E C O L O N I S I N G A F R I C A O N TH E P O W E R G R I D ICA Infrastructure Consortium for Africa ICEM International Federation of Chemical, Energy, Mine and General Workers’ Unions ICESCR International Covenant on Economic, Social and Cultural Rights ICRAF World Agroforestry Centre IDA International Development Association IDC Industrial Development Corporation IEA International Energy Agency IEP Integrated Energy Planning IFC International Finance Corporation IGCC Integrated Gasification Combined Cycle IGG Inspector-General of Government IHA International Hydropower Association IIEC International Institute for Energy Conservation IMF International Monetary Fund INEP integrated national electrification programme IPCC Intergovernmental Panel on Climate Change IPP Independent power producer IPPF Infrastructure Project Preparation Facility IPTL Independent Power Tanzania Ltd IRN International Rivers Network Iscor Iron and Steel Corporation IT information technology IUCN World Conservation Union JI Joint Implementation LNB low-NO x burners MDG Millennium Development Goal MEC minerals-energy complex MIG Municipal Infrastructure Grant MIGA Multilateral Investment Guarantee Agency MP Member of Parliament MTEF Medium Term Expenditure Framework Naledi National Labour and Economic Development Institute NAPE National Association of Professional Environmentalists NBI Nile Basin Initiative NECSA Nuclear Energy Corporation of South Africa NELF National Electrification Forum NEMA National Environmental Management Authority NEP national electrification programme NEPA National Electric Power Authority NEPAD New Partnership for Africa’s Development NERSA National Energy Regulator of South Africa NFA National Framework Agreement NGO non-governmental organisation Free download from www.hsrcpress.ac.za [...]... electric capitalism ? Why use the phrase electric capitalism ? It is not an unproblematic concept For one thing, electricity is not ‘necessary’ for capitalism Capitalism began before the advent of electricity, and it continues to operate – at least indirectly – in many parts of the world without it The fact that fewer than 20 per cent of Africans have access to electricity – and as few as 2 per cent... capitalism Oil is perhaps an even more critical requirement than electricity for capitalist production One could, therefore, write about ‘oil capitalism (as indeed many 3 E L E C T R I C C A P I TA L I S M : R E C O L O N I S I N G A F R I C A O N T H E P O W E R G R I D have; see for example Apter 2005; Rutledge 2006; SLM 2005) So, too, could one write of water capitalism, wood capitalism, iron capitalism. .. this sense, electricity is a fluke of history, not an ontological category in the development of capitalist relations of production Electric capitalism has no unique conceptual claim to understanding the dynamics of capitalist production Free download from www.hsrcpress.ac.za And yet, there is something remarkably synergistic about electricity and capitalism Metaphorically at least, electricity symbolises... the use (and abuse) of electricity is not restricted to neo-liberal capitalist modes of production It has been employed in radically different socioeconomic projects, from German fascism to Soviet communism to contemporary ‘state capitalism in China, all with their own demands and (il)logics when it comes to the use of electricity Finally, had electricity not been invented, capitalism would simply... http://siteresources.worldbank.org/INTENERGY/Resources/Rural_Energy_Development_ Paper_Improving_Energy_Supplies.pdf xxiii Free download from www.hsrcpress.ac.za CHAPTER 1 Electric capitalism: Conceptualising electricity and capital accumulation in (South) Africa David A McDonald On a global scale, the South African economy is uniquely dependent on electricity and is uniquely electricity-intensive (Fine & Rustomjee 1996: 8) A short circuit on a high-voltage transmission line... electricity use’ in that country (EETD 1998) Debates rage about how much electricity is consumed by these products – especially by computers (Koomey et al 2002) – but few would deny that the proportion of consumer products dependent on electricity has gone up significantly and will probably continue to do so for the foreseeable future, creating increased demands for electricity generation, if not electricity... and the ways in which it is managed have changed dramatically, making electricity as subject to the cyclical forces of capitalist crises as any other resource Electricity and capital accumulation in South(ern) Africa Nowhere is this link between capitalism and electricity more relevant than in South Africa Since the introduction of electricity to the mining town of Kimberley in 1882 (electrified even... families to cut themselves off from electricity by terminating their consumption at the point when they can no longer afford to buy more Greg Ruiters examines the South African government’s ‘free basic electricity’ programme in Chapter 9 Introduced as an ANC election promise in 2000, free basic electricity in the form of a free block of 50 kilowatt-hours (kWh) of electricity per household per month... substantively address the enormous inequalities in electricity access in the country Chapter 10 looks at electricity-related legislative and constitutional developments in South Africa and explores how socio-economic rights are affected by electricity commercialisation Constitutional expert Jackie Dugard notes that there are no explicit constitutionally defined rights to electricity, as there are for water and... Technology Services International Uganda Bureau of Statistics Uganda Commercial Bank underground coal gasification United Democratic Front Uganda Electricity Board Uganda Electricity Distribution Company Ltd Uganda Electricity Generation Company Ltd Uganda Electricity Transmission Company Ltd United Nations UN-Energy/Africa United Nations Environment Programme United Nations Framework Convention on . xiv Introduction: The importance of being electric xv David A McDonald 1 Electric capitalism: Conceptualising electricity and capital accumulation in (South). 480 Figure A2.3 Electricity production (hydro) 481 Figure A2.4 Electricity production (oil) 481 Figure A2.5 Electricity production (gas) 482 Figure A2.6 Electricity