Eskom needs new nuclear power to meet country's needs
South African national electricity utility Eskom is excited about its imminent new nuclear era. So affirmed Group CEO Brian Molefe on Wednesday in an address to the Nuclear Africa 2016 conference, that was delivered on his behalf by Eskom's recently appointed Chief Nuclear Officer, Dave Nicholls. He affirmed that the country had seized the opportunity to write a new chapter in its history.
He highlighted that the Integrated Resources Plan 2010 had directed Eskom on to a path of diversifying energy sources. These included renewables, gas and hydroelectric power (he cited the Cahora Bassa hydro-power plant in Mozambique as South Africa's first independent power producer programme) as well as nuclear.
He affirmed Eskom's pride in its commitment to renewable energy sources. But "[w]e know well that renewable energy cannot be the only option for the country". While shale gas was a possibility, it could be ten years before it is known if it is commercially feasible for the country.
"Electricity is fundamental to economic growth and social welfare in any country," he highlighted. He noted that electricity constraints were hurting key sectors of the South African economy, such as mining and manufacturing. The country needed baseload power, and that could only be met in South Africa by coal and nuclear power.
Currently, Eskom had 35 000 MW of coal power capacity. But most of the coal power plants are in the middle of their lives. They are under pressure from their age, the coal price and environmental concerns. "Coal-fired plants on their own will not meet South Africa's future needs," affirmed Molefe.
The country needed nuclear power. "Operating the only nuclear power plant in Africa for 30 years has yielded invaluable experience," he highlighted. "Koeberg is proud of its safety record."
The country benefited also from having its own regulatory framework and agency as well as local nuclear skills, in Eskom, the South African Nuclear Energy Corporation, and elsewhere. Eskom alone now has 2 000 nuclear skilled personnel: not enough for the future programme, but a good start.
He noted that, at the forefront of the nuclear debate in South Africa was the question of cost. He cited international studies that nuclear power, built on a fleet basis, can actually offer the lowest cost energy option for a country, as well as stimulating economic development. He pointed out that recent nuclear power plant projects in China, Russia and the United Arab Emirates (this last being undertaken by South Korea) had shown excellent adherence to budgets and schedules.
Another issue, he admitted, was that the significant delays at the new Medupi and Kusile coal-fired power stations had called the country's project management skills for big programmes into question. "Eskom has learnt a lot of lessons," assured Molefe. "This makes it the right time to pursue such a [nuclear] programme."
"Eskom's role as owner and operator [of the new nuclear power plants] has been confirmed," he highlighted, although the Department of Energy would act as the procurement agency. "It is the Department of Energy's role to determine who will be the preferred national partner."
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