The world’s largest operator of nuclear 
energy reactors, EDF, of France, has identified South Africa as one of five countries outside its home market where it hopes to deploy, in partnership with local utilities, ten new-generation ‘EPR’ pressurised water reactors (PWRs) by 2020. 
The other markets include China, the US, the UK and Italy.

EDF South Africa MD Frederic Diore tells Engineering News that the utility – which currently operates 58 nuclear reactors in France, mostly second-generation PWRs – would be keen to take equity in the South African programme, should Eskom and government 
decide to pursue the nuclear option and should it select Areva’s Evolutionary Power Reactor, or EPR, technology.

But Diore stresses that the company is in no hurry. 
“Remember, when you talk about a 
nuclear partnership, you are talking about one that has to endure more than 100 years,” Diore muses, referring to the preparation period that typically lasts up to a decade, a 60-year operational framework and waste handling that has to continue for decades thereafter.

EDF engineers were also “extremely busy” with the building of two new EPRs in France, a partnership with Chinese utilities on two 
additional EPR projects with negotiations for a further two advancing, with preparatory work under way for the possible development of four facilities in the UK and 
with preparation work for EPR licensing in the US.

Nuclear Rethink
In December, Eskom called a halt to its procurement processes for the so-called ‘Nuclear-1’ programme, owing to financial constraints. But government immediately 
reiterated its support for the technology.

Since then, the State has reportedly taken over the lead role in determining the funding options, while Eskom has continued with some preparation processes, including environmental-impact assessments at three pos-
sible nuclear sites – Duynefontein (alongside the existing Koeberg nuclear plant, in the Western Cape), Bantamsklip (near Pearly Beach, in the Western Cape) and Thyspunt (near Oyster Bay, in the Eastern Cape).

The South African utility, which initially 
indicated that nuclear energy could comprise as much as 20 000 MW of a larger 40 000-MW expansion that would be required over the next quarter of a century, has now set an indicative deadline of January 2011 for the start of construction.

Meanwhile, it is busy with the construction of two new coal-fired power stations, at a combined cost of R211-billion, to add to its already coal-heavy fleet – coal 
comprises more than 90% of Eskom’s energy 
mix.

Diore welcomes the nuclear reassessment, which he says will provide an opportunity for the authorities to deal with the serious financial, technical and environmental complexities associated with the roll-out of nuclear.

But he also believes nuclear energy would be a positive addition to South Africa’s 
energy mix, particularly given the country’s growing need for baseload capacity and its desire to begin moderating, and eventually reducing, Eskom’s carbon dioxide emissions. Besides, Diore firmly believes that the nuclear 
programme will give South Africa an oppor-
tunity to develop the whole industry and 
create thousands of jobs.

Investment Conditions
But the French utility, which reported sales of €64-billion last year, would only be willing to bring its sizeable balance sheet to bear if the following conditions were met:

•If the legal and regulatory framework 
was comprehensive and certain, and included 
the responsible management of nuclear 
waste;
•if public opinion, including from labour 
unions, was supportive;
•if South Africa was willing to accept the 
equity participation of a foreign entity in a nuclear facility and if EDF was a welcome investor;
•if Areva’s EPR technology was selected for the fleet; and
•if South Africa’s tariffs would move in the direction of cost reflectiveness.

In recent weeks, Eskom and government officials have signalled that public–private partnerships may need to be formed in order for Eskom to fund its new build programme.

The utility is forecasting a financing gap of about R54-billion for its R385-billion, five-year capital programmes that does not include any nuclear-related investments.

It is, therefore, in discussions with stakeholders about the creation of a so-called 
integrated funding plan, that would enable it to raise capital from a combination of equity 
injections, debt, and increased tariffs, and possibly by leveraging funds from partners.

Energy department deputy director-gen-
eral Nelisiwe Magubane confirmed recently that partnerships were indeed being contemplated, but she also stressed that Eskom had not yet 
approached government formally on the issue.

The technology selection is also far from clear, with Eskom having also entertained a bid involving the AP 1000 third-generation PWR, which has been developed by Toshiba’s Westinghouse and is about to be deployed in China.

“We are currently investing in a fleet of EPRs and we have decided that we cannot pursue two technologies in parallel,” Diore tells Engineering News.

EDF will, therefore, not participate in any investments involving an alternative technology.

“If Eskom and the South African government decide that the starting point consist in choosing a preferred technology, then EDF will wait for EPR to hopefully be selected.

“However, if Eskom and the South African government decide that the starting point consists in choosing an equity partner, then EDF is ready to contemplate partnership arrangements for an EPR fleet development,” Diore concludes.