GE CEO: Nuclear Power Development in South Africa Will Be 'a Really Hard Thing to Do'

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Development of nuclear power by South Africa won't be easy, according to General Electric (NYSE:GE) (GE) (Fairfield, Connecticut) Chairman and Chief Executive Officer Jeffrey Immelt.

While addressing a leadership meeting this week at the Gordon Institute of Business Science (GIBS) in Johannesburg, Immelt was asked whether he was in the country to discuss a possible role for GE in South Africa's putative $90 billion nuclear plans.

Immelt responded: "Nuclear is going to have its day, but it's a really hard thing to do. I mean, on a scale of 0 to 10, building a nuclear plant is a 12. I go back to, not just in South Africa but in Africa, always do the easy thing first. Always start with those things that can be managed, can be done, can be grasped, and once you get those things, do the really hard stuff."

Immelt did not comment on the possibility of GE talking nuclear energy with the South African government.

GE is investing billions in Africa, including South Africa. A company of GE's size should take the risk of investing in Africa, Immelt indicated. Using Nigeria as an example, he said: "If we're right in Nigeria, we're going to do great. If we're wrong, we're going to lose an acceptable limit for a company our size." He added that South Africa used to be optional, but now it was mandatory.

GIBS is situated in the "leafy northern suburbs" of Johannesburg. The day Immelt spoke, those suburbs had been subject to rolling blackouts as the national power utility Eskom struggled to keep the lights on in the country.

For related information, see September 25, 2014, article - Surprise Visit to Russia by South African President Prompts Nuclear Power Concerns; December 19, 2014, article - Nuclear Vendor 'Parades' Mark Pre-Procurement Phase for South Africa's 9,600 Megawatt Plan; and January 14, 2015, article - South Africa Feels the Strain of Uncertain Power Supplies.

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