The pebble-bed modular reactor (PBMR) offers an efficient and economical method of providing power to South Africa’s coastal towns and cities, Minister of Public Enterprises Alec Erwin said on Monday.
Opening debate on his R683,4-million budget vote in the National Assembly, he noted global warming had seen nuclear power re-emerge internationally as an attractive, alternative form of energy generation.
”Given the urgent demand for large-scale, clean, affordable energy and South Africa’s lack of primary fuel sources at its coastal regions … the PBMR provides a plausible and cost-competitive alternative solution.”
The other possibilities were the construction of very long and expensive transmission systems, or setting up the logistics to supply conventional coastal power stations with either natural gas or coal.
”Both of these solutions are expensive,” Erwin said.
PBMRs could be situated close to the point of use, and there was no need to upgrade either transmission or rail infrastructure.
PBMRs are small, high-temperature nuclear reactors. The ”pebbles” referred to are the fuel — enriched uranium dioxide encased in a graphite sphere about the size of a billiard ball.
Each module produces about 400MW, and two of them can be fitted into an area the size of a soccer field. The modular design allows for additional units to be added, according to demand.
”[We] will assist in the establishment of this entity by introducing a PFMA-compliant [Public Finance Management Act] governance system, supporting the construction of a demonstration plant and pilot-fuel plant, and facilitating the timely processing of the environmental impact assessment [EIA],” Erwin said.
On key developments at other state-owned enterprises, he said Transnet would continue its process of transforming from a ”diversified conglomerate into a focused freight-transport company”.
The rate of growth of container traffic into and out of South Africa meant there was a need for a rapid expansion of the country’s ports.
In this regard, ”the delays being experienced at Cape Town container terminal in respect of EIAs is a matter of concern, which we hope to resolve shortly”.
On Eskom, he said the electricity utility would invest R97-billion over the next five years.
”R65-billion will be invested in the generation sector, which includes the new build and the return to service of mothballed plants, and will add about 7 579MW to the current 37 500MW available in the system.
”R10,958-billion will be invested in transmission sector expansion and strengthening, while R15-billion will be invested in the distribution sector.”
Eskom had also exceeded its electrification targets.
”For the year ending March 2006, Eskom electrified 135 868 additional homes, surpassing its 85 000 target, and has now electrified 3,3-million homes since the inception of the programme. This is quite a staggering achievement,” he said to applause.
Turning to arms-procurement company Denel, he said a R2-billion cash injection and strategic re-focus was ”bearing positive fruits”, despite the challenges.
Among key measures deemed necessary to improve the company’s profitability was the realisation that ”domestic demand is the nucleus for success in the defence market”.
Denel was seeking to secure at least 70% of local defence spending.
”Interdepartmental task teams … have been established to ensure further alignment of defence acquisition policy with the objective of further developing the local industry.
”This may require changes to the current Armscor Act, and the alignment of Department of Defence requirements with the strategic capabilities of Denel … ,” he said.
On state gem-miner Alexkor, Erwin said the agreement struck between the company and the Richtersveld community would soon be announced.
”A few outstanding concerns are still being negotiated by the legal teams.”
He described the agreement as an ”historic opportunity for this community”. — Sapa