External Cost of Electricity Generation: Contribution to the Integrated Resource Plan 2 for Electricity

"The international studies on energy externalities and the local studies in South Africa suggest that the high impact areas for power generation are impacts of climate change and health impacts of outdoor air pollution. Climate change impacts are by far the greatest. The health costs due to outdoor air pollution are considered quite low based on national studies, though these may be underestimated. Damage cost from acid mine drainage is also thought to be significant, and could be substantially higher than reported here. External costs of electricity generation are a necessary factor in modelling the IRP 2. To be consistent, external costs must be added to the modeller’s reference case and to all policy cases or scenarios. In the multiple criteria decision-making process, the external costs should be reported as a distinct criterion."