South Africa Edges Closer to 9,600-Megawatt Nuclear Build, but Doubts Persist

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Funding for South Africa's ambitious $125 billion nuclear power building program may see independent power producers (IPPs) enter the sector in a major way, as Eskom is already committed to a multibillion-dollar program of thermal, renewable and transmission projects.

Eskom has had a near monopoly on power generation in the country, and companies interested in developing power projects are waiting for clarification on rates and terms from the national power regulator NERSA, although the door was opened to independent developers in the latest bidding round for renewable power projects.

For related information see September 19, 2011, article - South Africa Prepares to Move on 9,600 Megawatts of Nuclear Power with Six New Plants.

Consultations on the nuclear build program are ongoing, and the parliament has yet to give the final go-ahead on the plan to create 9,600 megawatts (MW) of additional nuclear power by 2030. Concerns are being expressed from both an economic viewpoint and the anti-nuclear section of the green lobby.

Energy Minister Dipuo Peters, who has said that the bidding process for the plant projects would begin in 2012, said this week that the total cost of the program would only be known when the bidding starts. She added that if the process starts in 2012, the first power generated from the new plants would be available to the national grid in 2024 or 2025.

The department of energy has said that the number of reactors needed to generate the 9,600 MW will depend on the reactor designs selected. No doubt major international nuclear players from the U.S., France, Japan and South Korea have been developing funding models to appeal to South Africa's government. To make and final costing, a number of points need clarification, including how much of the nuclear fuel supply chain will be located in South Africa and which technologies and contingency plans will be required for secure nuclear waste storage.

Greenpeace Africa has said that up to 50% of the country's electricity could be produced from renewable sources by 2030, and this could increase to 94% by 2050. Renewable project development could create 150,000 new jobs by 2030 and investing a similar amount to the proposed nuclear spend would create a sustainable industry hub and make South Africa a true climate leader by 2030.

With South Africa's target of having more than 85,000 MW of generating capacity by 2030, up from the current 43,000 MW, final decisions will have to be made on the nuclear program soon as deferred decisions on additional power construction projects have already put the country's power supply security under threat.

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