21 January 2016

South Africa: Government's Nuclear Plans - Will It Be the Arms Deal 2.0?

analysis

The decision to begin the process for the procurement of nuclear plants was published in mid-December 2015 in the Government Gazette, but oddly signed by the previous Minister of Energy, Minister Ben Martins. We are of the view that this is a significant development, although the nuclear programme is not a done deal just yet. Public concern is still warranted as the nuclear deal remains shrouded in secrecy and is following worrying patterns all too familiar when one considers the history of the arms deal. By SALIEM FAKIR and GARY PIENAAR.

Fundamental questions about governments proposed nuclear plans remain unanswered How much more installed generation capacity do we need? That question, in turn, can be answered only by answering a prior question: Ehat is the current and foreseeable demand for additional electricity generation capacity?

In terms of the law (s.6 of the National Energy Act, 2008 and s.34 of the Electricity Regulation Act, 2006) these questions must be answered by regularly revising the Integrated Energy Plan (IEP) and the Integrated Resources Plan (IRP). The IRP is an evidence-based determination of SA's electricity needs (i.e. the economy's 'demand' for electricity). The prerequisite of an updated IRP is an important legislated check...

South Africa

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