Jun 28, 2013
Rosatom awaits SA govt decision on nuclear powerBack
Construction|Engineering|St Petersburg|Africa|CoAL|Nuclear|Rosatom|Africa|Russia|Saudi Arabia|South Africa|Electricity Needs|Energy|Energy Needs|Finance|Fixed Electricity Prices|High Greenhouse-gas Emissions|Nuclear|Nuclear-generated Electricity|Oil And Gas|Ownership Finance Option|Dipuo Peters|Jacob Zuma|Kirill Komarov|Power|Sergey Kirienko|South Africa
© Reuse this
In April, the South African government indicted that it was set on pursuing its plan, contained in the IRP2010, to construct new nuclear power plants (NPPs) and increase the country’s amount of nuclear-generated electricity to 9.6 GW by 2030. This is in part to help meet South Africa’s growing electricity needs and to reduce the country’s high greenhouse-gas emissions.
South Africa is, however, taking a phased approach to making a decision on new nuclear power capacity and is not ready yet to advertise the tender, officials have indicated last month.
During discussions with President Jacob Zuma and Energy Minister Dipuo Peters last month, Rosatom director-general Sergey Kirienko proposed a strategic partnership with South Africa to develop the nuclear industry and to help it in meeting its future energy needs.
“We are not just interested in constructing nuclear power plant units, we are interested in strategic partnership with South Africa, as well as other countries in the continent, because of the big interest in nuclear in the developing economies,” he told Engineering News Online at the International Atomic Energy Agency International Ministerial Conference, in St Petersburg.
Komarov stated that Rosatom was prepared to provide different financing models to South Africa for NPP construction, including intergovernmental loans and potential investments in ownership of power stations.
The ownership finance option would see Rosatom construct the NPP, which it would wholly own and finance, while the South African government would provide the property, grid access and fixed electricity prices for a certain period of time.
The two financing models could also be combined, if required.
Komarov said that South Africa could, in addition to partnering with Rosatom to develop its nuclear power industry and, thereby, boost its economy, also implement a proper level of localisation in its nuclear power development plans to positively impact its economy.
“If South Africa has a level of localisation of 50% to 60%, it means that every rand invested in the nuclear plant can have a multiplier effect in the economy of R3 to R5. This is because the construction of a nuclear plant not only entails the construction process, but civil works as well,” he noted.
Komarov highlighted that the construction of two nuclear plant units with the capacity of 1 000 MW each, would create 10 000 jobs on site and a minimum of between 50 000 to 70 000 jobs in the rest of the economy.
“South Africa is ready for nuclear power development, it already has the technology and skill, it is trending with the rest of the world and is ahead of many countries in this regard,” he pointed out.
Komarov noted that nuclear power could offer a more affordable means of electricity generation in South Africa, where the current lacking volume of electricity contributed to higher power prices.
“It is expensive to construct nuclear power plants, producing the nuclear energy is cheap. This is because the volatility and unpredictability of coal, oil and gas prices have a great impact on the costs of the power plants that use these energy sources. This is attributable to the fact that these energy fuels make up between 60% and 70% of plant costs.
“Although uranium prices can also be volatile and unpredictable, it only makes up about 4% of the power plant’s costs and, therefore, does not impact it severely. This is why countries with a lot of oil and gas such as Saudi Arabia invest in nuclear,” he explained.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Updated 7 hours ago Russian nuclear energy group Rosatom confirmed on Friday that it had canvassed funding options with South African government officials during a recent “nuclear vendor parade workshop” held in the Drakensberg on October 23. The company said the options discussed were...
Updated 7 hours ago Energy utility Eskom and the South African Local Government Association (Salga) have signed a memorandum of understanding (MoU) aimed at fostering an active partnership to ensure a cooperative and collaborative working relationship. The MoU, which was signed by Salga...
Updated 4 hours ago The retail price of 95-grade petrol in South Africa will drop by 45 cents or 3.3 percent a liter from next Wednesday, while wholesale diesel will decrease by 4.9 percent, the government said on Friday. Petrol will cost 13.16 rand ($1.20) a liter while the wholesale...
Updated 4 hours ago Special purpose vehicle GreenCape will, by the end of 2014, make an application to the Department of Trade and Industry (DTI), the Western Cape provincial government and the City of Cape Town to declare Atlantis, on the Western seaboard, a special economic zone...
Updated 5 hours ago The German government has committed a further R70-million towards the second phase of the Non-Motorised Transport (NMT) programme. The NMT programme forms part of the Department of Environmental Affairs’ 2010 FIFA World Cup National Greening Legacy Programme.
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
In the next 20 years, it was expected that, in Africa, more people would live in cities and towns than in rural areas, United Nations Habitat executive director Dr Aisa Kirabo Kacyira said at the Human Settlements Indaba that took place earlier this month in...
Tough-talking Human Settlements Minister Lindiwe Sisulu has committed government to building 1.5-million low-cost houses over the next five years, telling the Human Settlements Indaba in Johannesburg on Wednesday that the State would achieve this target through the...
Over the past 20 years there has been persistent concern about deindustrialisation in South Africa, as well as the fact that locally produced manufactured products have been increasingly displaced by imports.
Financial agreement for Ghanian independent power producer (IPP) Cenpower Generation Company’s $900-million, 350 MW combined-cycle gas-turbine power plant was finalised earlier this month, paving the way for the project’s construction to begin before 2015 in Tema,...
The revenue implications for South Africa of ‘base erosion and profit shifting’ by corporate taxpayers are firmly in the crosshairs of the Davis Tax Committee (DTC) and Judge Dennis Davis hinted last week that recommendations were being considered to “detect and...