In a statement, the department said the move to go ahead developing the nuclear new build programme was initiated by the cabinet in June 2015 prompting South Africa to proceed with developing a programme for the procurement of nuclear power plants worth 9.6GW.

 

The move came as a result of more work being done on the proposed funding model, the risks and mitigation strategies and the contributions by countries in compliance with the inter-governmental agreements.

 

The cabinet convention which took place on December 9, 2015 received a report from the Energy Security Cabinet Sub-Committee which considered the work being carried out by both the Department of Energy and the National Treasury with regards to the funding of the programme.

 

The meeting saw the cabinet approve that the Department of energy should issue the Request for Proposal (RFP) for the Nuclear New Build Programme.

 

In addition, the cabinet also endorsed the final funding model which will be informed by the response of the market to the RFP. This will in turn be presented to the Cabinet for final approval and implementation.

“The development of the funding model would further be aided by the decision to proceed with issuing the request for proposal.

 

The proposal will first be presented to the Energy Security Cabinet Sub-Committee for recommendation before being considered by Cabinet.

 

The completion of the process and development of the final funding model by RFP is the only act that will see any further progress with the Nuclear New Build Programme,” the Cabinet said.

 

The department is also committed to transparency and cost effectiveness. It vows to ensure safeguarding of the integrity of the process. The department said the process is guided by the Integrated Resource Plan for Electricity 2010-2030, an initiative that was first published in May 2011.

 

Proposals for appropriate mix for electricity generation including coal, nuclear and renewable sources of energy were part of the plan.

 

The National Electricity Regulator of South Africa (NERSA) was to be consulted on the suitable energy mix and particularly the intention to procure additional nuclear capacity in order to continue with the request for proposals as agreed by Cabinet on 9 December 2015, said the department.

 

The consultation took place in 2013 with NERSA giving the consent together with Ben Martins, the Minister whereby the signing of the Electricity Regulation Act of 2006 took effect.

 

The actual publication of this determination was however withheld until the government had agreed to proceed with the request for proposals.

 

The present Minister of Energy, Tina Joemat-Pettersson gave consent for the release of the determination signed in 2013 once the agreement was reached on 9 December 2015.

In acceptance, the department said should have been made clear during the gazetting of the determination done on when the determination 21 December 2015.

Source : constructionreviewonline.com