Question NW2535 to the Minister of Energy
11 August 2015 - NW2535
Lekota, Mr M to ask the Minister of Energy
Whether her department, in pursuing a nuclear energy build programme, had (a) carefully factored in the Government’s policy position as captured in the Integrated Resource Plan and the National Development Plan (NDP), particularly the caution of the NDP for Government to evaluate the potentially prohibitive capital costs of nuclear energy as this required a level of investment unprecedented in the country, (b) worked out plans A, B and C to comfortably meet cost overruns of 50%, 75% and 100% in an increasingly costlier capital market following a possible down grading by rating agencies and (c) requested the Portfolio Committee on Energy to conduct public hearings with a view to reporting to Parliament the inputs received from experts and the public and the recommendations that the Portfolio Committee on Energy was therefore making to Parliament; if not, why not in each case; if so, what are the relevant details in each case?
Reply:
(a) The Department of Energy has carefully factored in the relevant government policies in preparation for rollout of the nuclear new build including the requirements of the National Development Plan(NDP) and Integrated Resource Plan 2010-2030 (IRP 2010-2030).
(b) The IRP2010-2030 provides a schedule to start commission the nuclear power plants from 2023 to 2030. The Department of Energy has identified a government State Owned Entity as an Implementing Agent for the nuclear new build programme. The Implementing Agent will work out specific detailed implementation plans to rollout the programme.
(c) South Africa has signed the Intergovernmental Agreements (IGAs) with Nuclear Vendor countries (USA, South Korea, China, France and Russia). The Department of Energy has tabled these IGAs to Parliament for deliberations and ratification. The Department awaits feedback from the Portfolio Energy Committee on this matter.