http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.06
R/$ = 11.56Change: 0.01
Au 1262.45 $/ozChange: 3.15
Pt 1228.50 $/ozChange: 11.00
 
 
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  
 
 
Aug 24, 2012

Nuclear project development needs to reach feasibility

Back
Construction|Expertise|Africa|CoAL|Eskom|KPMG South Africa|Nuclear|PROJECT|Projects|Renewable Energy|Renewable-Energy|Storage|Waste|Africa|South Africa|United Arab Emirates|Building|Electricity|Energy|Energy Requirements|Financial Services|Local Manufacturing Capabilities|Manufacturing|Nuclear|Nuclear Energy|Power Generation|Power-generation|Services|Shale Gas|Western Cape|Environmental|Infrastructure|Mohsin Seedat|Power|Waste|South Africa|Cleanest Baseload Technology
Construction|Expertise|Africa|CoAL|Eskom|Nuclear|PROJECT|Projects|Renewable Energy|Renewable-Energy|Storage|Waste|Africa||Building|Energy|Manufacturing|Nuclear|Power Generation|Power-generation|Services|||Environmental|Infrastructure|Power|Waste||
construction|expertise|africa-company|coal|eskom|kpmg-south-africa|nuclear-company|project|projects|renewable-energy|renewable-energy-company|storage|waste-company|africa|south-africa|united-arab-emirates|building|electricity|energy|energy-requirements|financial-services|local-manufacturing-capabilities|manufacturing|nuclear-industry-term|nuclear-energy|power-generation|power-generation-industry-term|services|shale-gas|western-cape|environmental|infrastructure|mohsin-seedat|power|waste|south-africa-region|cleanest-baseload-technology
© Reuse this



There is much work to do in terms of project development to get State-owned power utility Eskom’s nuclear build programme to feasibility stage, says professional services firm KPMG South Africa director of global infrastructure Mohsin Seedat.

The nuclear build programme is aimed at generating 9.6 GW of nuclear capacity in South Africa by 2030. Government committed to this programme in its Integrated Resource Plan 2010 (IRP 2010) for electricity.

However, Seedat says the challenge of this programme is that it is an investment that requires significant capital outlay upfront.

“The benefits are realised over a 60-year period, which yield cost-effective power in the long term, but the upfront costs could be significant for the country,” he says.

Project development work is required, in part to determine how South Africa will finance the projects. The level of State support and whether government will opt for a completely State-financed programme or a partnership approach with another country or utility that has the credentials to build nuclear plants will have to be considered.

Many countries look at different models when they consider funding these projects, such as State-financed projects or projects that are part or wholly financed by the private sector, Seedat notes.

Further, he says, globally, public–private partnerships are formed, with private companies taking an interest in a nuclear project, for instance, to benefit from the long-term offtake of power from the generation plant.

Other challenges facing the South African nuclear power generation industry are the availability of skills and local manufacturing capabilities, and whether these should be planned for and incorporated into the programme through procurement or State-driven initiatives.

“A significant share of skills is required, which is common to any infrastructure build project.

“We have some capacity in South Africa regarding the more technical skills, but it is not enough. As a result, we have to source some of the highly technical expertise involved in the construction of new nuclear plants from the global market,” states Seedat.

Although the programme will present job creation opportunities, skills are also required in the financial services and related areas, he asserts.


The Koeberg nuclear power station in the Western Cape has successfully provided the bulk of the province’s energy requirements for the last few decades and Seedat says that is testimony to the value of a nuclear plant.

From a carbon emissions perspective, it is a very clean power plant, compared with Eskom’s coal-fired power stations, he asserts.

As a result, Seedat believes that, if South Africa has a few more nuclear power plants, it would be easier to draw a proper conclusion about the effectiveness of nuclear power in terms of its power generation potential.

However, he acknowledges that there are concerns about nuclear energy and suggests that legitimate concerns pertain to nuclear waste, as well as plant decommissioning and dealing with nuclear events or risks. Seedat believes that, to date, and in the case of Koeberg, these risks have been well managed.

This is a key consideration for government, which has put forward policy ensuring that radioactive waste is properly managed and processed for generations to come.

However, he says the advantage of nuclear energy in high quantities is that it is the cleanest baseload technology South Africa can pursue.

“We don’t have significant hydroelectric power generation potential and there are also concerns about the ecological impact of large hydroelectric stations. The alternative is to pursue coal or gas, but both are carbon emitting,” he notes.

However, Seedat warns that, as South Africa progresses with building more coal-fired plants, the country is at serious risk of incurring higher carbon taxes that will impact on the economy.

From a carbon-modelling perspective, the 9.6 GW of nuclear power generation will contribute two-thirds of South Africa’s targeted carbon reduction and the 18.7 GW of renewable energy will contribute one-third of the targeted reduction up to 2030, he states.


Meanwhile, other alternatives for electricity generation, such as shale gas, are being explored. Seedat argues that, if the country is confident it can extract this gas safely, without causing adverse environmental harm, shale gas will become a starting point for energy generation.

“Shale gas competes in the gas market and, if we exploit it, the country needs to build a gas network and develop more infrastructure. A gas market would then be the primary market of shale gas, followed by an electricity generation market,” he suggests.

Meanwhile, he says, solar energy is maturing as a technology and it holds great potential for South Africa and the rest of Africa.

The economic viability of solar power is improving, with some countries, such as those in the United Arab Emirates, planning to use nuclear energy only until renewable energy becomes competitive on a baseload basis.

He points out that, if the cost of solar energy continues to decline over the next few years, South Africa can find itself considering solar energy as a serious contender in the next decade, should the country be able to improve the energy storage capability of solar-power plants.

Edited by: Chanel de Bruyn
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
Other Electricity News
Commenting in his capacity as chairperson of the Presidential Infrastructure Championing Initiative (PICI), President Jacob Zuma this week provided an update on the progress of several cross-border and regional infastructure projects championed by the heads-of-State...
Gauteng Premier David Makhura and JSE CEO Nicky Newton-King after a meeting with JSE-listed companies on Friday
Gauteng Premier David Makhura has promised to outline a comprehensive energy plan in his upcoming State of the Province address, acknowledging that without direct interventions to bolster security of electricity supply the province’s industrialisation vision could be...
An 8.5 MW solar field due to be officially launched in Rwanda next week, is set to boost the Central African State’s energy generation capacity by 6%, solar project developer Gigawatt Global has revealed. The landmark $23.7-million project is built on land owned by...
More
 
 
Latest News
SAA acting CEO Nico Bezuidenhout, Finance Minister Nhlanhla Nene and SAA chairperson Dudu Myeni
Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
More
 
 
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
 
 
 
 
 
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
ASTRAPAK The group highlighted that executive strategic interventions and other group-wide business improvement imperatives were progressing favourably
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.
 
 
 
 
 
 
 
 
 
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