KEY POINTS
- Court voids Eskom gas power project permit.
- Judges cite lack of proper consultation with communities.
- Environmental groups hail ruling as accountability milestone.
South Africa’s state-owned utility Eskom has been forced back to the drawing board on its flagship gas power project after the Supreme Court of Appeal annulled a government permit, ruling that authorities failed to ensure proper public participation.
The ruling halts Eskom’s plan to build a 3,000-megawatt natural gas plant at Richards Bay, a coastal city that has become central to the country’s energy transition strategy. The court said the authorization granted by the Department of Forestry, Fisheries and the Environment was invalid and could only be reissued once meaningful consultation with affected communities has taken place.
Eskom gas power project hits legal barrier
“This order means the authorization is a nullity,” the judgment stated. The decision mirrors earlier cases where courts blocked oil and gas ventures along South Africa’s coastline because developers failed to engage residents and environmental groups before securing permits.
The setback comes at a critical time. Eskom has struggled for years to stabilize power supply in Africa’s most industrialized economy, where recurring blackouts have hampered businesses and weighed on growth. The Richards Bay project was meant to diversify the grid and reduce dependence on aging coal-fired stations that still supply most of the country’s electricity.
Communities and activists claim victory
According to BizCommunity, environmental organisations welcomed the judgment, saying it reaffirmed the rights of residents often sidelined in South Africa’s energy planning. “Eskom has long escaped accountability, and communities near its facilities continue to suffer from high pollution levels,” said Desmond D’Sa of the South Durban Community Environmental Alliance, one of the applicants.
Richards Bay is also set to host South Africa’s first liquefied natural gas import terminal, highlighting the region’s role in the government’s attempt to pivot toward cleaner fuels. The annulment does not necessarily end Eskom’s project but forces it to restart the authorization process under stricter scrutiny.
Both Eskom and the environment department declined to comment immediately after the judgment.
