South African court cancels Eskom's permission to build new gas-powered plant

A top court in South Africa on Wednesday revoked a government permit that allowed state utility Eskom build a large natural gas-burning power plant, claiming there was not a proper consultation with the public.

The government is planning to build a 3,000-megawatt plant on the east coast in the port city of Richards Bay as part of its plans to boost the country's power generation capacity following years of blackouts, and move away from coal.

The Supreme Court of Appeal's judgment stated that "the effect of this order was to nullify the authorisation".

Eskom will need to submit a new application for authorization once the public participation is complete.

The ruling is similar to previous rulings against companies that failed to consult the affected communities properly when requesting permits to explore for gas and oil off South Africa's coastline.

Richards Bay is also where South Africa’s first LNG import terminal will be located. This is where Eskom’s gas plant will be constructed.

The appeal court's decision was welcomed by environmental groups that had contested the authorization granted to Eskom from the Department of Forestry, Fisheries and the Environment.

Desmond D'Sa, of the South Durban Community Environmental Alliance and one of the plaintiffs in the case, stated in a court statement that "Eskom has been able to get away with injustices for far too long. People who have lived near its facilities will be affected by the high levels of pollution."

When contacted, Eskom spokespersons and the Environment Department declined to comment. (Reporting and editing by Wendell Roelf)

(source: Reuters)