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Govt signals firm commitment to nuclear build

Govt signals firm commitment to nuclear build
Photo by Bloomberg

3rd June 2015

By: Kim Cloete
Creamer Media Correspondent

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Department of Energy (DoE) head of nuclear Zizamele Mbambo has told MPs that the government was firmly committed to going ahead with the nuclear build programme, with the first unit scheduled for 2023, and other units to follow soon afterwards.

“We are going to procure 9.6 GW of power from six to eight units, depending on the type of technology. If we are going to have this huge programme, government will have assets which will provide electricity for more than 60 years.”

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Mbambo said industrialising South Africa was critical and that he expected the return on investment to be “huge”. The deputy director-general added that nuclear plants were usually paid off within 20 years.

“We will reap rewards. That is why we have highlighted the example of the Koeberg power station as the most efficient and profitable power plant within the Eskom fleet.”

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Mbambo said he expected 30 000 direct jobs could be created during the ten-year construction period.

He said the DoE was approved as the designated procuring agency for the nuclear build.

“The DoE with State-owned entities, such as the National Energy Regulator of South Africa and Eskom, will lead the process,” he said.

Opposition parties have expressed concern about government’s readiness to proceed with the nuclear build programme.

Democratic Alliance shadow minister for energy Gordon Mackay said “cagey and evasive” responses on the proposed financing models for what would be South Africa’s most expensive public procurement process ever, were of great concern.

He was also worried about a slide in the department’s presentation suggesting that the DoE, through Eskom, intended to finance the programme by way of “tariff recovery at early stages”.

“From this information, one can only conclude that the DoE intends to fund the nuclear programme through massive electricity price hikes. This will inflate the cost of running a business, cause widespread job losses and make electricity unaffordable for many South Africans.

“At an estimated cost of R1-trillion before cost overruns, the choice to go nuclear is nothing short of absurd,” Mackay charged.

He also accused the DoE of secrecy for not releasing information, particularly about the cost of the nuclear plan.

“You’ve gone on an extensive roadshow with potential suppliers, yet you can’t tell me you have no clue of how much it will cost,” he questioned Mbambo in Parliament.

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