South Africa Needs New Nuclear After 2045 and More Financial Support for Eskom, say Ministers

CAPE TOWN – South Africa needs to start planning now for new nuclear power capacity to come online after 2045, Energy Minister Gwede Mantashe said on Thursday, reopening a heated debate about whether the country should build more nuclear reactors.

Gwede Mantashe arrives to be sworn in as South Africa’s Minister for Mineral Resources and Energy in Pretoria, South Africa, May 30, 2019. REUTERS/Siphiwe Sibeko

President Cyril Ramaphosa put nuclear expansion on the back burner after taking office in February 2018, saying a project championed by his predecessor Jacob Zuma was unaffordable.

But senior officials in Ramaphosa’s governing African National Congress party have said South Africa could be open to building more nuclear capacity when the economy improves.

South Africa currently operates one nuclear power plant, Koeberg, with an installed capacity of around 1,900 megawatts (MW).

“Given the long-term planning horizon for nuclear power plants, it is imperative that the planning work for the new nuclear power plants should commence now,” Mantashe, who has headed a merged mining and energy ministry since May, said in a speech to parliament.

“It is crucial for South Africa to plan for additional nuclear capacity beyond 2045,” Mantashe said, adding that a project was under way to extend the life of Koeberg by 20 years from the end of its designed life in 2024.

Mantashe’s comments will be welcomed by major nuclear reactor vendors like Russian state firm Rosatom, which was one of the frontrunners for Zuma’s nuclear project.

Russian President Vladimir Putin raised the subject of a nuclear deal at a meeting with Ramaphosa last year, a sign that Russia was still interested in the project.

“Koeberg demonstrates the benefits of nuclear power and gives reason to South Africa continuing with the nuclear expansion programme,” Mantashe said.

Zuma’s nuclear expansion project envisaged adding an additional 9,600 MW of capacity, but ratings agencies cited it as a cause for concern given recurring budget deficits and rising debt levels.

Opposition parties also argued the project would be a conduit for corruption, despite denials from Zuma and his allies.

Plans for Eskom funding bill on July 23

South African Finance Minister Tito Mboweni gestures as he delivers his budget speech at Parliament in Cape Town, South Africa, February 20, 2019. REUTERS/Sumaya Hisham

South African Finance Minister Tito Mboweni also said on Thursday he was considering introducing a special appropriation bill on July 23 to provide struggling state power firm Eskom with additional financial support for this year and next year.

Mboweni added that government would also provide financial support from the contingency reserve to state firms South African Airways, weapons manufacturer Denel and the state broadcaster SABC.

“This additional financial support cannot be a blank cheque to these state-owned enterprises,” Mboweni told parliament on Thursday. “We really and truly cannot go on like this.”

(Reporting by Wendell Roelf; Writing by Alexander Winning; Editing by Olivia Kumwenda-Mtambo and David Evans)