Eskom’s R1.3 trillion nuclear plans will bankrupt SA

By pushing ahead with its nuclear plans, South African power utility Eskom will bankrupt this country environmental lobbyists Earthlife Africa said today

Accusing Eskom of an “uneconomic U-turn” on its nuclear plans, Earthlife Africa questioned the utility’s ability to fund its 1.3 trillion rand capital expenditure programme.

“In just over six months, Eskom has changed its mind on nuclear power.

In December 2008, Eskom considered nuclear power to be too expensive. In May 2009, Eskom released plans to build nuclear plants,” said Earthlife Africa energy policy officer Tristen Taylor.

South Africa this week outlined tentative dates for a renewed rollout of nuclear power stations with proposed plans indicating it could start preparing the first of three sites as early as January 2011.

Three nuclear plants, each with a generation capacity of 4,000MW, would be brought into operation every two years starting July 2018 through to July 2022.

Eskom currently operates Africa’s sole nuclear power plant with a total capacity of 1,800 MW.

But nuclear power remains the most expensive form of electricity generation.

As Earthlife Africa pointed out, it also comes with inherent safety risks, and produces highly radioactive waste that must be dealt with for hundreds, if not thousands, of generations.

The costs of generating electricity from nuclear power exceed that of coal, natural gas, geothermal, wind, solar thermal, and landfill gas.

“Where Eskom hopes to find the money for this expensive project is beyond comprehension,” said Taylor.

Currently, Eskom does not have a funding model to support its current capex programme of 340 billion rand, and its recent application to the National Energy Regulator of South Africa is about seeking a 34% tariff increase to meet rising primary energy and maintenance costs, not to cover its planned total 1.3 trillion rand capex programme, Earthlife said.

Recent reports suggest that Eskom will be seeking funding from the government for its nuclear programme, but Taylor warned that ordinary citizens would end up having to pay for an industry that produces radioactive waste, creates fewer jobs than any other form of electricity generation, and is the most expensive form of electricity generation. – I-Net Bridge