/ 12 December 2023

Nuclear energy procurement market to open in 2024

Safrica Energy Coal
Electricity Minister Kgosientsho Ramokgopa says there is a “compelling” case for expanding the use of nuclear power as there is a pressing need for additional generation capacity. Photo: Phill Magakoe/Getty Images

Minister of Electricity Kgosientsho Ramokgopa says there is a “compelling” case for expanding the use of nuclear power as there is a pressing need for additional generation capacity.

“There has to be an appreciation of the generation and demand challenges, and in that context, you can make a case on why you need to proceed with this 2 500 megawatts.

“I think the case is compelling. Part of the reason why we are here with regards to the energy crisis is that the generation can’t meet demand and therefore you need to have additional generation capacity because we make the point all the time that the Eskom fleet is ageing and we need additional generation capacity to help us ensure we can secure the country’s energy’s future,” he said at a press briefing on Tuesday.

The government is deliberating on whether to pursue the construction of large reactors, like those found in traditional nuclear power stations, or opt for small, modular reactors, which have recently become commercially available. The construction time is 10 to 15 years.

Ramokgopa added that the department of mineral resources and energy plans to release a request for proposals to acquire 2 500MW of nuclear power in March 2024.

He said that nuclear energy is the “cheapest and cleanest” option, providing essential baseload power — the minimum amount of power needed — for stabilising renewable energy sources.

“We are initiating a procurement process. We aim to secure an additional 2 500MW of nuclear capacity to bolster energy security and sovereignty. This represents a significant milestone, solidifying our undisputed position as a continental leader in nuclear generation capacity.

“This will assist in determining the scale at which the country will need to procure additional generation capacity from various technologies, including nuclear,” he said.

As the government prepares to release its long-term energy plan, called the Integrated Resource Plan (IRP) 2023, which has draft approval from cabinet, Ramokgopa said that the decision to pursue 2 500MW of nuclear energy had already been made in the 2019 version of the IRP and had been carried forward into the latest edition.

The 2019 IRP document did not explicitly incorporate new nuclear power into the energy procurement plan until 2030. Instead, it advised the department of mineral resources and energy to initiate preparations for a nuclear build programme, targeting 2 500MW, at a pace and scale affordable for the country.

Addressing past challenges, Ramokgopa acknowledged that the attempt to procure nuclear energy during president Jacob Zuma’s administration had been controversial.

But he said that the government had established clarity in the procurement process through collaboration with the National Energy Regulator of South Africa (Nersa), receiving the necessary approval to proceed.

Zizamele Mbambo, the deputy director-general of nuclear energy in the department of mineral resources and energy, said that the procurement process would adhere to constitutional principles, ensuring openness, transparency and cost-effectiveness. 

Mbambo said, unlike the previous administration’s closed tender process, the approach aims to avoid exclusivity and foster fair competition.

He added that the attempt to forge an exclusive arrangement with the Russian state-owned nuclear power company Rosatom had been set aside by a court following legal challenges from environmental activists.

Ramakgopa said all the conditions to procure nuclear energy had been met, the programme had been given the go-ahead in September, and the government had started gazetting it.

He described Nersa’s approval on Tuesday as a “significant milestone”. 

“We know that, historically, the process was mired in controversy. Now we have been able to iron out the issues related to how the procurement process needs to unfold. We have met the regulatory requirements and legal requirements, and also now that we have the concurrence of Nersa, we are able to proceed.”

Ramokgopa said acting now would ensure that South Africa had enough generation capacity in the future.

There is renewed interest in nuclear globally as a carbon dioxide-free power generation option but this technology’s significant initial capital expenses remain a major concern.

Environmental groups have criticised Ramokgopa’s actions, arguing that nuclear power is costly.

Makoma Lekalakala from Earthlife Africa said the timing of the announcement from Ramokgopa is against procedure because the minister and Nersa had not allowed the public to comment on the determination.

“The IRP is yet to be finalised, and comments are needed to ensure it goes into law. It doesn’t make sense because the IRP draft is not even public as yet, so the process is flawed,” she said.