Electricity & energy minister Kgosientsho Ramokgopa has assured MPs the procurement for any new nuclear build will be undertaken in an “open, transparent, equitable, competitive and cost effective” manner. Legislators say the minister’s undertaking — contained in a written reply to a question by Freedom Front Plus MP Wynand Boshoff — will be subject to thorough scrutiny. The construction of nuclear plants internationally has been plagued by huge cost overruns and delays, posing a major risk to investors.
While there are claims the situation might be different with small modular reactors, such as the pebble bed modular reactor the government envisages for South Africa — that remains to be seen. The government’s previous attempt to conclude nuclear deals with Russia, South Korea and the US was overturned by the Western Cape High Court in 2017 on the grounds that the energy regulator hadn’t sought public participation in the decision. “It’s a bit premature to speculate on this [undertaking], as it is currently in development,” DA energy spokesperson Kevin Mileham said in response to the minister’s reply.
”All I can say is that if they get the go-ahead from government (and especially National Treasury) to proceed, I will be watching very closely to see that what the minister has promised actually comes to pass. “It is somewhat reassuring to note that they acknowledge the failures of the past and the challenges/deficiencies identified by the courts, and that the proper processes and procedures will be followed. This remains to be seen.” Boshoff said parliament and civil society organisations would keep a close eye on the process.
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The cabinet-approved Integrated Resource Plan (IRP) 2025 envisages the installation of 5.2GW of new nuclear generating capacity by 2039 at an estimated cost of R2.23-trillion, and it could be expanded. The plan proposes a mix of nuclear, wind, solar, storage and gas-to-power energy sources. “The department’s procurement approach is designed to secure value for money and protect the public interest, given the long-term fiscal and tariff implications of nuclear investments,” Ramokgopa said in reply to Boshoff’s question.
“The department does not intend to pursue sole source or confined procurement for the nuclear new build programme. Any procurement approach will be structured to enable competitive participation, including international participation, within a framework that protects national interests, ensures technology and vendor due diligence, and supports localisation and skills development. “Government’s nuclear programme is being advanced within a structured policy, legal and regulatory framework, informed by the Integrated Resource Plan 2025 and the principles of affordability, safety, transparency and long-term energy security.” Ramokgopa said his department is updating and consolidating the framework to align it to the IRP 2025 allocation, the current institutional arrangements in the sector and the applicable constitutional and public finance prescripts.
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