SA nuclear plans remain a mystery

The Democratic Alliance (DA) has raised concerns about the project, with its energy spokesperson, Lance Greyling, saying the matter should be debated in Parliament, notes a Business Day report. 'The DA will not allow government's nuclear plans to be executed under this cloud of secrecy. A trajectory of silence and intrigue has become an all-too-familiar characteristic of the current administration,' Greyling is quoted in the report as saying. Those with misgivings either about nuclear as a technology or the government's ability to handle its procurement are often quick to cite the arms deal saga as an example of how large state tenders can easily go wrong, according to the report which notes that for those with a deep-seated aversion to nuclear as an option, the horse has bolted. The government looks determined to proceed with the programme, even after last year's Fukushima Daiichi disaster in Japan, which could have given the government an easy way out, the report states. It notes it would have been easier − and acceptable − then to ditch nuclear, alongside the likes of Germany. A staunch critic of nuclear energy, Mike Kantey, says it is the most expensive method of generating electricity and cannot succeed in the market without large government subsidies and inflated electricity prices, according to the report. Full Business Day report

Another unanswered question about SA's planned nuclear programme is the role power utility Eskom will play, states a Business Day report. It notes that after the Eskom board decided to shelve its planned, self-funded nuclear project, the government took the reins from Eskom and made clear its intention to drive SA's nuclear energy programme. Although this programme will be led by the government and not Eskom, it is only logical that Eskom, as the national power utility, will play a prominent role. Energy expert Philip Lloyd is quoted in the report as saying: 'It is very difficult to say. Eskom would like a role, in fact it would like to run the reactors just as it runs Koeberg ... However, there are concerns about risk management under this model − how would an owner-operator cope with a major accident? So I think the more probable model is in fact for Eskom to manage, as it is a state-owned entity and the state would then cover the risk.' However, Eskom spokesperson Hilary Joffe says the utility does not know what its role in the nuclear programme would be, the report states. Full Business Day report

Meanwhile, global nuclear developers are keeping SA on their radar, notes Business Day. The nuclear tender, due to be announced later this year, is expected to be worth an estimated R300bn, and is certainly going to be hotly contested. The big players in nuclear energy have already set up operations in SA in anticipation of the project, states the report. It says last month, the Russian State Atomic Energy Corporation hosted a seminar in Johannesburg to showcase Russian nuclear technology. Names that spring to mind are French energy giant Areva and US nuclear technology group Westinghouse. According to the report, one of the advantages of embarking on a nuclear programme is that there is a greater chance of creating a local industry by building a fleet of nuclear reactors rather than creating capacity on a piecemeal basis. The report notes Areva, which built the nuclear facility in Koeberg, has expressed a desire to be part of the nuclear programme. It is said to be intending to submit a bid with China's Guangdong Nuclear Power Group. The potential bidders and the rest of the country await the details of the nuclear programme. The integrated resource plan for electricity makes provision for 9600MW of nuclear power by 2030. But Energy Minister Dipuo Peters said no decision had been taken on the number of plants, the report states. Full Business Day report