Nuclear power still part of the mix

December 18, 2008

Free Market Foundation

The South African government has ended the bidding process for a second nuclear programme because of the price tag. However, the decision does not mean an abandonment of nuclear energy the government has indicated that it will likely revisit the option in four to five years, when Eskoms R343bn recapitalisation programme should be gaining momentum. Portia Molefe, director-general of the public enterprises department, and senior minerals and energy department officials confirmed the governments commitment to investing in alternatives to coal-based power.

The government had been looking for a nuclear technology partner and was in negotiations with Areva and Westinghouse.

In Nuclear gamble published in opinion and analysis, Business Day points out that the speculated R120bn price tag for a second nuclear programme is approximately twice the cost of constructing a coal-fired power station.

The same opinion piece says that a second nuclear power plant would contribute 3,300 MW to Eskoms goal of expanding capacity by 40,000 MW in the next 20 years illustrating the need for investment in energy production.

Source: Siseko Njobeni, Nuclear power still part of the mix, Business Day, December 8, 2008.

For text: http://www.businessday.co.za/articles/topstories.aspx?ID=BD4A900655

For more on energy issues: http://www.freemarketfoundation.com/issues.asp?id=27

FMF Policy Bulletin/ 09 December 2008