SA’s nuclear expansion to go ahead

Energy Minister Tina Joemat-Pettersson tells Parliament that SA’s planned nuclear expansion will be “corruption free”.

Cape Town - South Africa will have connected 7 000 megawatts of renewable power to its grid by July, the energy minister said on Wednesday, and still plans to go ahead with a nuclear expansion plan.

Africa's most industrialised country has turned to solar and wind power to diversify its energy mix and help plug electricity shortages. The first 47 renewable energy independent power producers are due to be fully operational by July.

It also hopes to install 9 600 MW of nuclear power in the next 15 years to address chronic electricity shortages, but the cost of the project estimated at about $100 billion has raised budgetary concerns.

Tina Joemat-Pettersson reaffirmed in Parliament that the planned nuclear expansion would be “corruption free”, following concerns by opposition parties over the tender process and about the affordability of the project in a country whose economic growth has stagnated.

“We will ensure that the process is above board and free of any potential for corruption,” Joemat-Pettersson said.

The department of energy would issue a request for proposal to confirm market appetite for the fleet of nuclear plants and help secure commercial and financial information for the government to make a final decision, she said.

“We will only implement what our country can afford,” Joemat-Pettersson said.

Forecasts for growth in South Africa have fallen to below 1 percent for 2016 as a global commodity slump drags on and rising inflation rates curb domestic spending.

South Africa's renewable energy programme has thus far unlocked private investment of more than R194 billion ($13 billion) and has been a focus sector for foreign investment.

“We remain on track to meet our national commitment to transition to a low carbon economy with the target of 17 800 MW of renewable energy power by 2030,” Joemat-Pettersson said.

The department of energy said on Wednesday in a newspaper advert it is seeking private investors to partner in the development of a 600 MW gas-fired power plant and three solar parks in the Northern Cape province.

Joemat-Pettersson said a biofuels regulatory framework, which spelt out how the industry will be funded as well as projects selected, would be sent to the cabinet this year.

“A 460 million litres per annum biofuels industry can immediately improve the country's annual balance of payments by over 2.5 billion rand at the current crude oil prices and exchange rate,” she said.

Regulatory uncertainty centred on financial support incentives to manufacturers has choked investment since the approval of a national biofuels strategy in 2007.

REUTERS