South Africa considers public/private partnerships to build nuclear power stations
The government unveiled various funding and ownership models to acquire nuclear projects.
Energy expert Hilton Trollip joins John Maytham to discuss the Department of Mineral Resources and Energy (DMRE) proposing three possible ownership models to acquire and fund nuclear projects in South Africa.
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The government has outlined three possible funding and ownership models for South Africa to acquire more nuclear projects as part of its Nuclear New Build Programme (NNBP).
The DMRE told a portfolio committee meeting that full government ownership, majority government ownership and public-private partnerships (PPPs) were the options being considered.
Last month, Minister of Energy and Electricity Dr Kgosientsho Ramokgopa announced that a plan to procure 2500MW of nuclear energy had been withdrawn.
It followed legal challenges, arguing that public comments had not been sought and the procedure had not been fair.
At the time Ramokgopa said the decision was based on 'openness and transparency'.
Trollip disagrees.
"This is not openess and transparency. This is what I would call smoke and mirrors."
- Hilton Trollip, Independent consultant in energy research
On Wednesday, DMRE Director-General Jacob Mbele said it was possible that under the PPP model, with a vendor company, 'government does not have to put a cent on the table'.
"What this involves is Eksom signing a contract with a PPP, a private company, to build a nuclear power station, saying it will buy all the power from the nuclear power station."
- Hilton Trollip, Independent consultant in energy research
"Eskom then, on its balance sheet, has to put a liabilty, the contract, to spend X amount of money over the next 20 years."
- Hilton Trollip, Independent consultant in energy research
Trollip says the private company only faces technical risk. Provided it can build the power station and send power to Eskom, the utility must buy it, 'whether it's hugely costly, or not'
"And then Eskom recovers the cost from the consumers."
- Hilton Trollip, Independent consultant in energy research
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