By Des Muller
The Minister of Electricity and Energy, Kgosientsho Ramokgopa and his executive team recently met with the media to address concerns from certain groups, on the gazetting of the of the procurement of nuclear energy without public consultation on NERSA’s approval of the three suspensive conditions, responded to by the DMRE.
The interdict from these groups suggested that NERSA and the Department of Mineral Resources and Energy (DMRE) follow our transparent protocols by allowing the public to respond to DMRE’s response to these suspensive conditions.
The three suspensive conditions covered:
- Has the DMRE taken the advancements in the safety of nuclear energy technologies into consideration.
- What was the rationale for the 2,500MW allocation in the IRP 2019.
- The construction of the nuclear power plants should be based on a turnkey EPC contract.
The Minister agreed with the motion on transparency and promptly withdrew the nuclear energy procurement gazette, to allow for the public consultation process to proceed before reinstating it.
Although the DMRE’s response to the three suspensive conditions were approved by NERSA, the request is valid, but shouldn’t pose major risk or delays in the public consultation process.
My opinion on the conditions are:
The consideration of the advancements in nuclear energy technologies were already included in the 2007 procurement process, where a fleet of Generation 3 Large Scale reactors were being procured (Koeberg is Generation 2).
Although we were developing our own Small Modular Reactor (SMR) with the PBMR, it would have been included when a proven and demonstration model was available. SMRs have improved safety features and have advanced very well globally since then, with the first SMR commissioned in 2022.
Nuclear energy growth
When SMRs become commercially available, they will have acquired a huge order book, so we need to engage now if we want to secure them for the 2030s.
The rationale behind the 2,500MW by 2030 was “at a pace and scale we can afford.” We have two shovel-ready coastal sites for the expedient delivery of large-scale and SMR nuclear power plants.
Considering our planned coal power retirement programme in the 2030s, and the valuable contribution that SMRs can make in replacing them, as well as offering viable solutions to Intensive Energy Users, our nuclear energy portfolio is expected to continue growing in the 2030s, as proposed in the IRP 2023.
Nuclear power plants are procured globally with a turn-key Engineer, Procure and Construct (EPC) contract, delivered by the Nuclear Vendor (OEM) and its team of experienced international contractors. That was the basis for our procurement programmes since 2007.
There will also be a substantial provision made for our local industry through partnerships and subcontracts with the EPC team. This will mitigate the risks experienced on our Medupi and Kusile coal power plant builds. The nuclear power plants selected would also be based on proven technologies, with several of these plants operating successfully around the world.
Need for transparency
I am sure the Department of Electricity, and its team of technical experts, will handle the public consultation process on these suspensive conditions, professionally and transparently.
Transparency works both ways. Given that nuclear energy is internationally recognised for providing the cleanest and most reliable and affordable electricity, the groups that are blocking the global expansion of nuclear energy also need to be transparent on their purpose during public consultation process, as they are delaying the recovery of our economy and our industry.
A nuclear energy build provides an abundance of opportunity and higher paying jobs for our local supply chain, during the six to eight years of construction and 60 to 80 years of operations and maintenance.
With the repurposing of our retired coal power plants with SMRs, we preserve and upskill existing jobs and turn those potential ghost towns into advanced energy hubs, with prospering and contributing communities.
Nuclear energy can be a game-changer for SA economy
South Africa, is an industrialised nation and, when our industry is well prepared, up to a third of the construction cost on the first two units can be localised. With a fleet build, the local content can grow to up to 50%.
This will be game-changer for our industry and, with improved skills and quality standards, can access other safety-class industries like LNG and Hydrogen and the many international nuclear energy projects being planned.
We should therefore secure our local industry’s confidence in the nuclear energy procurement programme to be ready on time to qualify for the local nuclear industry supply chain and again create sustainable employment for many South Africans.
Our local industry should therefore unite in urging the stakeholders engaged in this debate to find effective solutions and get the nuclear energy procurement programme back on track so that we can start growing our industry and secure a sustainable future for South Africa’s economy.
Des Muller is Spokesperson for SA Nuclear Build Platform
