http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.64Change: -0.03
R/$ = 12.27Change: 0.00
Au 1168.75 $/ozChange: 3.43
Pt 1084.50 $/ozChange: 1.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Jan 11, 2013

EIUG head calls for rethink on SA’s nuclear plan

Back
Engineering|Africa|Energy Intensive User Group|Environment|Eskom|Gas|Industrial|Mining|Nuclear|Resources|SECURITY|Africa|China|South Africa|Electricity Generation Capacity Plan|Energy|Energy-intensive Businesses|Imported And Unconventional Gas Options|Technology Innovation|Infrastructure|Kgalema Motlanthe|Mike Rossouw|Power
Engineering|Africa|Environment|Eskom|Gas|Industrial|Mining|Nuclear|Resources|SECURITY|Africa||Energy||Infrastructure|Power
engineering|africa-company|energy-intensive-user-group|environment|eskom|gas|industrial|mining|nuclear|resources|security|africa|china|south-africa|electricity-generation-capacity-plan|energy|energyintensive-businesses|imported-and-unconventional-gas-options|technology-innovation|infrastructure|kgalema-motlanthe|mike-rossouw|power
© Reuse this



The head of South Africa’s Energy Intensive User Group (EIUG), which represents Eskom’s largest mining and industrial customers, has called for a full review of the country’s future generation capacity options, including the validity of pursuing a “substantial, expensive and inflexible nuclear programme”.

Writing in the Business Day, EIUG chairperson Mike Rossouw described the current version of the Integrated Resources Plan (IRP), which was published in 2011 and outlines South Africa’s new electricity generation capacity plan for the 20-year period from 2010 to 2030, as “outdated”.

“A review should consider, for example, the scope for new technology innovation in power, the validity of a substantial, expensive and inflexible nuclear programme and alternative fuel options, such as gas,” Rossouw argues.

It has been reported previously that the Department of Energy is likely to conduct a review of the current IRP during 2013, and that there is an intention to increase the role of imported and unconventional gas options into a revised plan.

Rossouw tells Engineering News Online that the review is “overdue”, as there have been material changes in the electricity environment since the IRP was published.

For instance, the IRP’s assumed electricity demand growth is 2.5%, while the expectation currently is for average yearly growth of less than 2% over the coming five years.

The EIUG is not opposed to nuclear as a technology option, but is concerned that the addition of 9 600 MW of new nuclear capacity by 2030 could foreclose other opportunities that are more responsive to changing energy-market dynamics.

“For instance, we need to take a deep dive into the possible impact that the regional gas and shale gas prospects could play in affordably meeting our security of supply objectives,” Rossouw argues.

A large-scale nuclear roll-out could also further exacerbate the surge in Eskom prices, which have already climbed by more than 200% since 2007, from around 20c/kWh to 60c/kWh.

Eskom’s request for a further five yearly increases of 16% between 2013 and 2018, would result in “a huge 540% [increase] over the ten-year period”.

The EIUG believes yearly increases of 10% would be sufficient, particularly if the National Energy Regulator of South Africa insisted on greater cost prudency and operational efficiencies.

Increases that raised the nominal power price to 128c/kWh by 2018 would severely weaken the competitiveness of South Africa’s productive sectors and force energy-intensive businesses to close.

“By way of example, we have seen South Africa lose its place as the world leader in ferrochrome production to China in the past few years,” Rossouw writes.

He also quotes a National Foundry Technology Network report stating that there has been a decline of 13% in the number of foundries in South Africa since 2007.

“It does not appear that affordability has been adequately factored into the current planning and pricing considerations.” For instance, a closure of energy-intensive firms would erode Eskom’s revenue base, placing upward pressure on its costs that would have to be recovered from a shrinking customer base.

“This potential revenue collapse will be compounded by South Africa’s apparent imminent commitment to a substantial and irreversible nuclear build programme that will see Eskom’s costs and tariffs spiral even further beyond 2017.”

In November, Cabinet endorsed Eskom as the designated owner-operator of any new nuclear energy plants in South Africa, following the inaugural meeting of the National Nuclear Energy Executive Coordination Committee (NNEECC), which is chaired by Deputy President Kgalema Motlanthe.

The NNEECC has been established to oversee any future nuclear procurement process, as well as any future build programme.

Cabinet has also endorsed the proposed ‘phased decision-making approach’ for implementation of the nuclear programme, as well as a nuclear communication and stakeholder engagement strategy.

As part of this phased approach, the International Atomic Energy Agency (IAEA) will conduct an integrated nuclear infrastructure review mission to South Africa during February to assess South Africa’s readiness in terms of 19 milestones outlined by the IAEA.

The review follows a domestic self-evaluation report conducted under the aegis of the NNEECC.

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Macro and Micro News
Updated 1 hour 23 minutes ago The ebola virus, economic decline in some countries, and South Africa’s new immigration regulations are to blame for the drop in tourist arrivals to South Africa, Grant Thornton Advisory Services said on Monday. About 150 000 fewer tourists visited South Africa in...
Updated 1 hour 27 minutes ago Strong economic growth in Mozambique is supported by major investments in the coal mining and natural gas sectors but stricter control over state-run firms is necessary, the International Monetary Fund said on Thursday. "Mozambique's continued strong growth...
Updated 1 hour 33 minutes ago International investors, dismayed by Nigeria's decision to delay a naira devaluation they see as long overdue, will hold back from its stock and bond markets, raising risks of a deeper crisis in Africa's biggest economy. The afterglow from March, when an incumbent...
More
 
 
Latest News
Updated 40 minutes ago Nigeria's Transcorp plans to spend $1.575-billion from 2016 to 2018 to raise its power generation capacity to 2 500 megawatts (MW) from 610 MW now, the company said on Thursday. Transcorp, which also has interest in hotels, oil and gas, said it expected the...
Updated 1 hour 9 minutes ago The ebola virus, economic decline in some countries, and South Africa’s new immigration regulations are to blame for the drop in tourist arrivals to South Africa, Grant Thornton Advisory Services said on Monday. About 150 000 fewer tourists visited South Africa in...
Updated 1 hour 13 minutes ago Strong economic growth in Mozambique is supported by major investments in the coal mining and natural gas sectors but stricter control over state-run firms is necessary, the International Monetary Fund said on Thursday. "Mozambique's continued strong growth...
More
 
 
Recent Research Reports
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Construction 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Electricity 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
Real Economy Insight: Road and Rail 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
 
 
 
 
 
This Week's Magazine
NHLANHLA NENE The main constraints to economic growth are domestic
Finance Minister Nhlanhla Nene earlier this month stated that, while South Africa’s 2015 economic growth target of 2% was achievable, it was not enough to deliver the tax revenue needed to combat the country’s challenges.
The World Steel Association has published the 2015 edition of the World Steel in Figures report, which shows an increase in steel production as well as provides an overview of steel industry activities from crude steel production to apparent steel use.
The 25-year master plan for Gauteng’s Aerotropolis project will go through a process of approval and adoption during June and July, says Aerotroplis project manager Jack van der Merwe. “We are also in the process of putting together a special purpose vehicle (SPV) to...
SOLAR PANELS The existing buildings in the Coega Industrial Development Zone lent themselves well to rooftop solar panel installations
The Coega Development Corporation (CDC) plans to fit 15 of its buildings, totalling 127 000 m2 of roof space, in the Coega Industrial Development Zone (IDZ), in the Eastern Cape, with solar panels.
The Supreme Court of Appeal’s (SCA’s) November 2014 judgment, ordering steel producer ArcelorMittal South Africa (AMSA) to hand over the 2003 Environmental Master Plan for its Vanderbijlpark steel plant to environmental pressure groups, confirmed the right of civil...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96