Pretoria - Government is still to negotiate the price for the procurement of nuclear power in South Africa, the Department of Energy said on Tuesday.
According to the department, government has completed various technical studies including in depth studies into the cost of nuclear power, funding and financing models and economic impact of localisation, among others.
“It is important to note that government is still to negotiate the price tag in the procurement process which is why exact figures for the study cannot be made available to the public at this stage. These studies were done to ensure that South Africa is a knowledgeable customer,” said the department.
In March 2011, Cabinet approved and promulgated a 20 year Integrated Resource Plan (IRP 2010-30) which is the electricity plan of government with a mixed energy agenda that puts nuclear at 23% (9600 MW) of energy source by 2030. The first unit will be commissioned by 2023.
Giving a status briefing on South Africa’s nuclear build programme in Ballito, KwaZulu-Natal, the department said that the current world experience for quoted numbers for real export would indicate an overnight cost of around $5 billion per 1200MW which is equivalent to $4200 per kilowatt per reactor in new comer states.
“In countries with established domestic construction programmes (e.g. China, South Korea and India) the prices are in order of $2500 per kilowatts are being quoted. Amongst the 70 plus reactors in the world, there are a number of projects where because of the local market and political conditions the project costs are higher than these figures,” explained the department.
The briefing comes following the submission of the Inter-Government Framework Agreements on nuclear cooperation to Parliament.
In the department’s Budget Vote Speech, in May, Minister Tina Joemat-Pettersson said the department will commence with the nuclear procurement process in the second quarter of this financial year.
Government voluntarily invited the International Atomic Energy Agency (IAEA) to conduct the Integrated Nuclear Infrastructure Review (INIR). The review is an assessment of the country’s infrastructure as it relates to readiness to start purchasing, constructing and operating nuclear power plants. The INIR was conducted with a final mission report having being received on 30 May 2013.
Among the recommendations of the review was that the Bid Invitation Specification (BIS) and related evaluation criteria should be completed as a prerequisite for the tendering and procurement process. According to the department, this will be finalised by the end of July 2015.
In addition, the department undertook study tours to various nuclear vendor countries to familiarise itself with various technologies on offer while Inter-Governmental Agreements (IGAs) have been signed with vendor countries that have expressed interest in the South African nuclear new build programme.
The IGA’s lay a foundation for cooperation, trade and exchange of nuclear technology as well as procurement. The IGAs were presented to Cabinet for discussion and approval and recently have been tabled in Parliament and are now ready for further debate and Parliamentary endorsement.
Going forward government plans to follow the approved procurement process that will include a competitive bidding process that is transparent and cost effective and in line with legislation. In addition, to start procurement in the second quarter (July 2015) of the year, government also plans that the procurement process is to be completed by the end of the 2015 financial year and that the selection of the strategic partner or partners will be done by the end of the 2015 financial year.
In addition, government remains committed to ensure energy security for the country through the roll out of the nuclear new built programme as an integral part of the energy mix.
“Government remains committed to ensuring the provision of reliable and sustainable electricity supply, as part of mitigating the risk of carbon emissions. The nuclear new build programme will enable the country to create jobs, develop skills, create industries and catapult the country into a knowledge economy,” it said. - SAnews.gov.za
