http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.87Change: 0.17
R/$ = 10.97Change: 0.07
Au 1228.58 $/ozChange: -16.16
Pt 1252.00 $/ozChange: -18.00
 
 
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 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|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|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|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
Updated 4 hours ago Photovoltaic (PV) microgrids are increasingly emerging as favourable off-grid power options for the electrification of rural settlements and remote industrial operations in Africa, largely owing to a continued increasing of the diesel price coupled with the...
Updated 7 hours ago Relevant government departments and solar industry stakeholders represented by the South African Photovoltaic Industy Association (Sapvia) are due to meet next week in Kimberley, in the Northern Cape, to decisively bed down an industry “master plan” that would guide...
Article contains comments
Finance Minister Nhlanhla Nene confirmed a further direct allocation to power utility Eskom of at least R20-billion. But he also stressed on Wednesday that the injection would have no impact on the Budget deficit as the capital would be raised through the sale of...
Article contains comments
More
 
 
Latest News
Updated 1 hour 56 minutes ago The majority of the 41 signatory countries to the Organisation for Economic Cooperation and Development’s (OECD’s) Anti-Bribery Convention, adopted in 1997, have failed to clamp down on foreign bribery activities. Fifteen years after its implementation, only four...
President Jacob Zuma
Updated 2 hours 31 minutes ago President Jacob Zuma on Thursday revealed the composition of the new team of Ministers and business proponents set to lead the Presidential Black Economic Empowerment Advisory Council. Trade and Industry Minister Dr Rob Davies, Minister in the Presidency responsible...
Updated 2 hours 33 minutes ago Cabinet on Wednesday approved the retention of South African Airways (SAA) chairperson Duduzile Myeni and nonexecutive director Yakhe Kwinana, while also approving the appointment of Dr John Tambi and Anthony Dixon as board members at the troubled national carrier....
More
 
 
Recent Research Reports
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.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
 
 
 
 
 
This Week's Magazine
The broad-based black economic-empowerment (BBBEE) alignment process in the con-struction sector has begun, dur-ing which the sector codes of the Construction Sector Charter Council (CSCC) will be aligned with the revised Codes of Good Practice (CoGP), which come...
It is second time lucky for Toby Venter. Ten years ago he negotiated to buy the Kyalami racetrack, but “the deal did not materialise”.
Environmental solutions company I-Cat started construction work on its R22-million, 1 949 m2 environmentally sustainable office and warehouse facility, commissioned by I-CAT Environmental Solutions, at a launch event in October. The new sustainable I-CAT campus,...
IAN EVANS AirWatch file synchronisation and sharing system was initially designed for a large airline company
Effective file synchronisation and sharing across an organisation’s structures can provide the basis for robust mobile-device and document management while maintaining proper backup, version control and content distribution. These are the lessons learned by complex...
Hotel group Carlson Rezidor currently holds the largest hotel pipeline in Africa with 30 hotels and 6 300 rooms under development. The hotel group develops and operates Radisson Blu in the upper upscale segment and Park Inn by Radisson in the mid-market segment. With...
 
 
 
 
 
 
 
 
 
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