New nuclear plan aims to test market interest

A call to the market for interest in 2,500MW of new nuclear generation capacity, issued by the department of energy, would be “fully transparent” and take account of all options, the department said.

The request for information (RFI) issued on Sunday took many by surprise as no commitment was made to construct new nuclear power in the Integrated Resource Plan (IRP).

But the new resource plan, which is the government’s long-term planning tool and usually makes 20-year projections, made proposals for the commissioning of new energy capacity only until 2020, due to the amount of uncertainty and change in the energy market.

As the plan should also be updated every two years, government officials believe the scope for a new nuclear build in the future still exists as nuclear energy is included in SA’s policy “energy mix”.

While the plan did not commit to a new nuclear build in the next 10 years, it did, among its decisions, commit the government to prepare for one at some point.

One of the decisions of the resource plan says the government must “commence preparations for a nuclear-build programme to the extent of 2,500MW at a pace and scale that the country can afford”.

Department of energy deputy director-general Zizamele Mbambo said the request for information was therefore entirely consistent with the resources plan and the government was acting to obtain information needed for longterm energy planning.

“We are starting a new process. We are opening all options and will take a decision.

“It will be a very open and transparent process,” Mbambo said.

At a parliamentary committee a week ago, mineral resources and energy minister Gwede Mantashe said the request for information was a market sounding exercise.

“If a company wants to produce a modular reactor, they can make a proposal.

“This could be on a build, operate, transfer model, which means that there will be no immediate call for financing ... All we are saying is that we are exploring all options and if there is appetite in the market for it we will do it.”

Proposals on two options are called for: pressurised water reactors — such as the two at the Koeberg power station — and small modular reactors, which are still in development.

Dave Nicholls, chair of the board of the Nuclear Energy Corporation of SA, which is not directly involved in the request for information but will probably advise the government on the responses to it, said: “The IRP makes no commitment to what is built after 2020.

“Any project of significance takes at least 10 years between the decision and implementation. ”—