South Africa- financially ruinous coal and nuclear power proposals – will muck up post-Covid-19 recovery
New coal and nuclear power proposals undermine prospects of a post-Covid-19 economic recovery, Daily Maverick, By Anton Eberhard• 17 June 2020
The Department of Mineral Resources and Energy’s attachment to ‘clean coal’ and new nuclear as immediate options for a post-Covid-19 economic recovery would be comical if they were not financially ruinous. Their fixation on these non-competitive, non-commercial technologies is now wasting scarce public resources.
South Africa is beginning to see the consequences of an energy ministry trapped in the past, beholden to interest groups and oblivious to global innovations in energy technologies and markets. Submissions by the minister and his energy department to Parliament in the past month reveal an economically disastrous commitment to policy, procurement and investment options that have no hope of contributing to our post-Covid-19 economic recovery.
The Department of Mineral Resources and Energy (DMRE) in its strategic and economic plans is promoting the role of nuclear energy (mainly small modular reactors) and clean coal (with carbon capture and storage), but these technologies are neither price competitive nor, in the case of small nuclear, are they currently commercially available.
In a presentation to Parliament on 26 May 2020, Minister Gwede Mantashe proposed several medium-term (6-12 month) interventions in response to the economic impacts of the Covid-19 pandemic. …….
In the same presentation, the minister proposed a number of interventions (also 6-12 months) to enhance electricity supply security, including acceleration of a nuclear build programme, conversion of Eskom’s diesel-fired turbines to gas and the building of a new oil refinery. None of these, of course, can be accomplished within a year and it’s highly unlikely that even contracts for these projects will be placed any time soon, if ever. Implementation of South Africa’s IRP electricity plan, which identifies wind, solar and storage as the next least-cost options to ensure electricity supply security, was evidently not regarded as a priority although – almost as an afterthought – it was offered as a long-term option.
Over the past weekend, DMRE launched a Request for Information (RFI) to commence preparations for a nuclear build programme. Of course, an RFI is non-binding (unlike a Request for Proposals, RFP, in a competitive tender or auction) and participants are perversely incentivised to put forward unrealistically attractive offers and prices which they’ll probably seek to alter when contracts are negotiated. In short, an RFI is not particularly helpful unless you don’t know what you’re doing and want technology and service providers to shape your procurement.
The minister has now appointed a new board chairperson, the retired nuclear chief officer of Eskom, an ex-British navy nuclear submariner, someone who continues, on social media, to rubbish renewable energy alternatives.
The minister has also entertained plans for expanded investment at the Nuclear Energy Corporation of South Africa (NECSA), despite the institution recording unprecedented financial losses. ……..
It’s time for a reality check. No country or private company currently offers commercially proven exports of land-based, small modular nuclear reactors. South Africa tried to develop one – the pebble bed modular reactor (PBMR) – but after spending more than R20-billion (in today’s money), the programme was closed after a decade without even a pilot demonstration plant being built. …….. Clean coal is also a mirage. …….. https://www.dailymaverick.co.za/article/2020-06-17-new-coal-and-nuclear-power-proposals-undermine-prospects-of-a-post-covid-19-economic-recovery/#gsc.tab=0
Renewable energy for South Africa – cost-efficient and quick – forget coal and nuclear
Global advances in renewable energy sector should halt SA’s rush to nuclear, Let’s avoid any major financial and technological disasters such as Medupi and Kusile happening again Business Live 17 JUNE 2020 , SA is once again on the cusp of another major electricity production decision. We had better get this one right. Mineral resources & energy minister Gwede Mantashe recently announced that the government is pressing ahead with a nuclear build programme for SA as early as 2024. This despite ample reported evidence that renewables, particularly solar, can be built both rapidly and cost effectively in incremental amounts up to the scale envisaged (2,500MW) to closely match any supply/demand curve.
It is therefore of some concern that those major companies in SA that have been interfacing with the renewables fraternity for their internal electricity production will respond to the one month deadline to raise reservations in a responsible manner with sound factual numbers. We certainly need to avoid any major financial and technological disasters such as Medupi and Kusile happening again.
The coming decade looks set to become a golden one for renewables globally and could well cement their position irreversibly as the way forward for a threefold purpose: global electricity needs, containing the global temperature rise, and avoiding the drastic climate change…….
The good news is that the driver for electricity production through renewables is no longer climate change but economics. A recent announcement of the lowest competitive tariff globally for a large-scale solar PV (photovoltaic) project in Abu Dhabi certainly illustrates this. It particularly signals the resetting of economies after the Covid-19 lockdown, especially in terms of any incremental increase in the supply/demand curve going forward.
Most significantly, the rapid construction capability of small- to large-scale renewable technologies avoids the long lead times of the large-scale fossil fuel and nuclear projects, with their difficult financial funding constraints. In addition, it shows that matching the supply/demand curve is relatively straightforward.
With favourable economics as the driver, this raises the issue of stranded assets. Increased reporting on the abandonment of coal plants has become relevant. The stranded asset value of fossil fuel electricity production, explained in a recent Cambridge Econometrics paper in Nature Climate Change, is said to be in the range $1-trillion to $4-trillion. Big numbers. …….
For SA, renewables would surely help overcome load-shedding and the planned closure of our ageing coal fleet. However, the political opposition to significant introduction of renewables capacity (by trade unions) could well be a limitation for this route………. https://www.businesslive.co.za/bd/opinion/2020-06-17-global-advances-in-renewable-energy-sector-should-halt-sas-rush-to-nuclear/
South Africa’s environmental watchdogs warn government against new nuclear power
Environmental watchdogs are warning Energy Minister Gwede Mantashe against a new nuclear power programme. Mantashe’s department has indicated that it will be going ahead with the procurement process for a two thousand 500 megawatt programme. The Southern African Faith Communities’ Environment Institute says going forward with the plan would be unlawful. The institute’s Francesca de Gasparis joins us from Cape Town to discuss. Courtesy #DStv403
South African activists threaten to sue over nuclear plan
South African activists threaten to sue over nuclear plan JOHANNESBURG, June 11 (Reuters) – South African activists have written to the energy minister threatening to take legal action if he moves to build new nuclear power plants without proper consultation.The letter to Gwede Mantashe from Earthlife Africa Johannesburg and the Southern African Faith Communities’ Environment Institute (SAFCEI) comes after energy officials said last month they planned to procure 2,500 megawatts (MW) of new nuclear capacity by 2024.
The activists said they would go to court if Mantashe tried to procure nuclear power, or seek information about it from vendors, without following proper regulatory processes and seeking public input. Three years ago, the same groups succeeded in persuading a court to block a nuclear power agreement with Russia, signed under then-president Jacob Zuma……. https://www.reuters.com/article/safrica-nuclear/update-1-south-african-activists-threaten-to-sue-over-nuclear-plan-idUSL8N2DO5SN |
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South Africa’s nuclear waste problem- why plan to increase it?
The nuclear option https://www.businesslive.co.za/bd/opinion/letters/2020-05-17-letter-the-nuclear-option/ 17 MAY 2020, Keith Gottschalk, It is bizarre that a government department is advocating the building of more nuclear power stations with the slogan “a no-regret option”! (“ANC government is determined to pursue nuclear at any cost”, May 12).
Try selling that slogan to the people of Fukushima and Chernobyl.
Murky links between the nuclear and coal lobbies in South Africa
Anatomy of a lobby: How, and why, coal and nuclear interests are converging https://www.news24.com/SouthAfrica/News/anatomy-of-a-lobby-how-and-why-coal-and-nuclear-interests-are-converging-20200315, Sarah Evans
While in South Africa, there is little proof of such an organised, funded campaign being conducted by the coal industry itself, a motley crew of intersecting interests has coalesced around common policy goals: Attempting to stop government’s policy of introducing renewable energy onto the national grid by purchasing power from Independent Power Producers (IPPs), and pushing a narrative that says that Eskom needs to keep buying coal, and that the life of its ageing power stations needs to be extended.
The narrative is also centred around the idea that government must once again pursue a large nuclear building programme, once favoured by former president Jacob Zuma, but since shelved by the Cyril Ramaphosa administration.
Many of the anti-IPP lobbyists are strongly sympathetic to the former president.
The is despite the release of the Integrated Resource Plan last year – the country’s energy roadmap – which seeks to phase out coal, gradually, over the coming decades, increase the use of renewable energy onto the grid, with a reduced role for nuclear energy.
Lobbying efforts by the industry itself have cropped up all over the world as governments are pressured to radically reduce their reliance on burning fossil fuels.
The Guardian reported last year that such a campaign had been launched on a global scale by mining giant Glencore.
But in South Africa, the campaign has taken on the face of a coalition of forces, more than an organised and well-funded propaganda effort, as far as we know.
To the one side of the anti-IPP coalition are some unions, some obscure pro-Zuma lobby groups, coal truckers and disgruntled individuals such as former acting Eskom CEO Matshela Koko.
This campaign has played out in the mainstream media, but seems to have the most traction on social media.
The campaign reached Eskom’s physical doors last week when the EFF entered the fray on the side of the lobbyists. The party took its message to the power utility in the form of a protest, flanked by nuclear energy industry lobbyists like Adil Nchabaleng of pro-Zuma lobby group Transform RSA.
On the other side of the campaign is the coal industry itself, which appears to be in the initial stages of an advocacy campaign.
Transform RSA teamed up with Numsa and the Coal Truckers Association in 2018 in a failed court bid to stop the signing of IPP agreements – a case that Nchabaleng tried to link to a break-in at his home where his housekeeper was tied up and held at gunpoint.
He is also a Member of Parliament, representing the African People’s Convention.
Transform RSA’s politics were made clear when, also in early 2018, it threatened to take legal action against the ANC’s leadership if they moved against former president Jacob Zuma by discussing his recall at a meeting.
On the social media front, the South African Energy Forum (SAEF_ZA) has been actively opposing IPPs, and has advocated for more nuclear energy in South Africa’s energy mix in a “People’s IRP” released on behalf of itself and sister organisations last year.
Another vocal advocate of nuclear energy, and of abandoning the IPP project, is Khandani Msibi, who heads up Numsa’s investment arm.
The SAEF’s members are all APC party members, with the exception of one Ronald Mumyai. His social media accounts show that he is a former EFF member, supporter of Zuma, and homophobe, although the homophobic tweet in question has since been deleted.
Another obscure entity that appears only to exist online is the Anti-Poverty Forum, which, when it is not laying complaints with the Public Protector over IPPs, spends its days campaigning against Zuma’s nemesis, Public Enterprises Minister Pravin Gordhan.
The forum is fronted by ANC Brian Bunting branch member Phapano Phasha, also formerly associated with the Gupta’s failed television station ANN7, who laid a complaint against Public Enterprises Minister Pravin Gordhan with the ANC’s integrity commission last year.
Coal industry advocacy
As for the industry itself, it seems clear that many players feel coal is unfairly under attack, in the face of overwhelming scientific evidence of its contribution to climate change.
At a gathering of coal industry leaders in Cape Town in February, Minerals Council South Africa (MCSA) senior economist Bongani Motsa said there was a need for a “strong coal advocacy group” to lobby for the industry, against what it views as an onslaught from the “renewables lobby”.
Motsa likened the Integrated Resource Plan (IRP) to an abusive spouse that was unkind to the industry, in spite of its willingness to invest in “clean coal” technologies.
Motsa did not provide any details as to what this would look like.
In February 2018, when heated talks over the IRP were ongoing behind closed doors at Nedlac, the MSCA released a document titled “Coal Strategy 2018” in which it outlined plans to counter the narrative around coal.
The plan’s executive summary states: “The Chamber of Mines Coal Leadership Forum, consisting of coal executives, commissioned a report to determine what needs to be done to increase the profile of the coal mining industry in the face of seemingly ineluctable negative public opinion around the use of coal in industrial processes. Negative views on coal and its impact on the environment have resulted in a precipitous decline in the use of coal by the major economies of the world…”
The plan decried the introduction of strict laws to protect the environment that would stifle the coal industry, and implied that the industry’s contribution to the economy and jobs needed to be punted in public.
For now, the links between the pro-coal, anti-IPP actors are murky. But what is clear is that their interests align around policy and political goals, and it remains to be seen whether they carry enough weight to have real impact on either front.
South Africa’s Eskom nuclear troubles – the outcome of years of corruption
Eskom’s ailing Koeberg nuclear plant a result of years of corruption https://www.thesouthafrican.com/news/eskom-koeberg-nuclear-plant-corruption/ What Eskom continues to do to this country should be viewed as a human rights violation, says Safcei. by Andrea Chothia, 2020-03-12
The Southern African Faith Communities’ Environment Institute (Safcei) said that Eskom needs to be more realistic about the country’s precarious energy situation and consider whether pushing the Koeberg Nuclear Power Station past its sell-by date is worth risking an energy catastrophe.
Koeberg’s electricity unit 1 has only been up and running for a matter of weeks after it was closed for essential repairs. But after coming back into service in January, it has only returned to cause more problems. About 930 MW of power has been taken off the national grid because of its breakdown.
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Strange turnaround for South Africa’s EFF leader Julius Malema – nuclear best for blacks, renewables for white elites??
Malema goes nuclear on Eskom’s future, Daily Maverick, By Ferial Haffajee• 1 March 2020 Twice in the past month, EFF leader Julius Malema has used high-profile platforms to bat for nuclear energy as a key plank of South Africa’s energy planning. It’s a clear U-turn for the populist leader who was for years vehemently opposed to Zuma’s proposed nuclear deal with Russia.
On Friday, capping a march of thousands of supporters to the Eskom HQ, EFF leader Julius Malema handed over a memorandum to CEO Andre de Ruyter.
In it, he stated a demand he had first made in February in his debate on the state of the nation:
“Eskom should build nuclear power stations using a build, operate and transfer model with a clear illustration of how the private sector will use their money, operate them for an agreed period, transfer operation and maintenance skills to state-employed engineers, artisans, electricians and other skills needed to operate a nuclear power station.”
In his speech in the pouring rain outside Eskom, Malema did not mention nuclear energy, but it is a prominent part of the three-page memorandum, now in Eskom’s hands.
The red sea of EFF marchers who marched for nine kilometres from the Innes Free Park to Megawatt Park signals that Malema and the EFF have entered the energy battle as key protagonists. He appears to now be the political leader of a loose coalition of interests pushing for nuclear energy procurement, the maintenance of coal as a key feedstock for the national grid as well as a slowdown in the pace of renewable energy production.
This places Malema in clear opposition to the “green revolution” pledged by President Cyril Ramaphosa in his 2019 State of the Nation Address and the much larger role for the private sector in energy production outlined by Finance Minister Tito Mboweni in #Budget2020 last week. ….
Nuclear — the black option?
Malema and his deputy president Floyd Shivambu have been long-term opponents of independent power producers selling renewable energy in bid windows opened by Eskom.
There is a growing view across the EFF and sections of the ANC that nuclear is a “black option” for energy professionals who want in on a new market while “renewable energy” is dominated by white capital, in South Africa’s race short-hand.
The reason for this is that the first bid windows featured many European and US multinational companies making a gambit for some of what were then the biggest renewable energy deals in the developing South and also among the most expensive.
Malema’s audacious Eskom march on Friday also revealed a new political front opening up in the energy wars. The EFF aligned with Transform RSA, the movement led by nuclear energy proponent Adil Nchabeleng who is the most prolific and powerful mover behind the lobby opposing renewable energy procurement by Eskom. Nchabeleng was on the EFF stage on Friday; he is also well regarded in the ANC…….
Rosatom, the Russian nuclear agency, uses a build, operate and transfer model across the continent where it has enjoyed great success in getting deals from African leaders.
In addition, it also provides the start-up capital for nuclear power stations in vendor financing deals. Rosatom was close to signing an estimated R1-trillion deal which was strongly punted by former president Jacob Zuma who fired two finance ministers for slow-footing his nuclear ambitions. The company is still hoping South Africa will see the light on energy.
Zuma almost achieved the deal with Russia, but it was stopped in court when Judge Lee Bozalek in April 2017 ruled in favour of the case brought by Earthlife Africa Johannesburg and the Southern African Faith Communities’ Environment Institute (Safcei) against government’s plans to build a fleet of nuclear power stations.
In 2016, Malema set his stall against the nuclear deal. …..
SA’s IRP downgrades nuclear
The pro-nuclear lobby has lost governing party political influence in South Africa – the integrated resource plan launched by Mineral Resources and Energy minister Gwede Mantashe in late 2019 suggested a limited role for nuclear in the future.
It now appears to have powerful new friends in the EFF which has switched its opposition to nuclear power to active support.
While the pro-nuclear, anti-renewables energy lobby says the costs of nuclear are more competitive, the cost of water, solar and other power is steadily coming down. Coal-fired power stations are also quickly losing investor interest as financiers turn away from fossil fuels.
Daily Maverick approached two EFF spokespersons for comment, but did not get a response. DM https://www.dailymaverick.co.za/article/2020-03-01-malena-goes-nuclear-on-eskoms-future/
Hazards of Russia’s nuclear colonialism- example South Africa
SUMMARY
Amid the widespread attention the Kremlin’s recent inroads in Africa have attracted, there has been surprisingly little discussion of South Africa, a country which, for nearly a decade, unquestionably represented Russia’s biggest foreign policy success story on the continent. As relations soared during the ill-starred presidency of Jacob Zuma (2009–2018), the Kremlin sought to wrest a geopolitically significant state out of the West’s orbit and to create a partnership that could serve as a springboard for expanded influence elsewhere in Africa. Continue reading South Africa to create extra space for nuclear waste
Business Times, WED, NOV 27, 2019 [JOHANNESBURG] Radioactive waste storage facilities at South Africa’s nuclear power station Koeberg will fill up next year, the power utility Eskom said Tuesday, adding it has begun creating extra space.
South Africa is the only country on the continent with a civilian nuclear industry, and its two reactors have been in service for more than 30 years.
The Koeberg nuclear power plant, located outside Cape Town, produces 1,860 megawatts contributing about four percent of the national power output.
Eskom in a statement that its “spent fuel pools are essentially full in 2020 and for this reason a project was initiated to create additional space”…….
Koeberg was originally set to be mothballed in 2024, four decades after its inception, but it is being upgraded and it is now expected to operate until 2044.
Environmental campaigners have warned against the nuclear project.
“It is incredibly short-sighted for the government to pursue extending Koeberg’s lifespan, potentially at the expense of our safety,” Melita Steele, Greenpeace Africa’s Climate and Energy Campaign Manager said Tuesday.
“Not only are South Africans going to have to fork out more money for more storage for high-level radioactive waste, but there is also no long-term solution for this waste, which can remain radioactive for hundreds of thousands of years,” Ms Steele said.
Currently, 90 per cent of the country’s electricity is generated from coal-fired stations.
The government last year dropped controversial plans to build new nuclear power stations, deals that had been initiated by former leader Jacob Zuma and that could have bankrupted the country to enrich his allies. https://www.businesstimes.com.sg/energy-commodities/south-africa-to-create-extra-space-for-nuclear-waste
South Africa’s nuclear waste storage almost completely full; a dangerous situation
Waste storage at Africa’s only nuclear plant brimming, Channel News Asia, 25 Nov 19, CAPE TOWN: Spent fuel storage at South Africa’s Koeberg nuclear plant will reach full capacity by April as state power utility Eskom awaits regulatory approval for new dry storage casks, the company said on Monday (Nov 25).
Storage of high-level radioactive waste is a major environmental concern in the region, as South Africa looks to extend Koeberg’s life for another two decades and mulls extra nuclear power plants.
Koeberg, Africa’s only nuclear facility, is situated about 35km from Cape Town and was connected to the grid in the 1980s under apartheid.
“The Koeberg spent fuel pool storage capacity is currently over 90 per cent full. (These) pools will reach (their) capacity by April 2020,” Eskom told Reuters in a statement.
Koeberg produces about 32 tonnes of spent fuel a year. Fuel assemblies, which contain radioactive materials including uranium and plutonium that can remain dangerous for thousands of years, are cooled for a decade under water in spent fuel pools….
Anti-nuclear lobby group Earthlife Africa said South Africa could not afford the social, environmental and economic costs associated with nuclear waste.
“We have a ticking bomb with high-level waste and fuel rods at Koeberg,” said Makoma Lekalakala, Earthlife Africa’s director. https://www.channelnewsasia.com/news/world/waste-storage-at-africa-s-only-nuclear-plant-brimming-12123664 brimming-12123664
No nuclear in South Africa’s future energy mix
The plan – which builds on a relatively well-received draft announced last year – makes some significant advances in changing South Africa’s energy mix. For example, it significantly ups the contribution of wind as well as solar power to South Africa’s overall energy allocation. The production of power from wind is expected to grow by 900% by 2030, and power from solar photovoltaic by 560%……
Ultimately economic realities dictate that coal and nuclear cannot compete with renewable technologies. These are already much cheaper, and their cost continues to drop by the year.
Even with maximum political will, a nuclear build cannot be realised without convincing investors and the public that it makes economic sense. It doesn’t……..https://theconversation.com/south-africas-future-energy-mix-wind-solar-and-coal-but-no-nuclear-111106
Misuse of funds in South Africa”s nuclear reactor project
Is this outfit similar to Australia’s ANSTO and its Lucas Heights reactor? They both seem like mavericks running their own show without accountability
The letter reveals that Necsa has been making massive operating losses since 2014, which have deteriorated over the years, and has resulted in various ring-fenced funds being irregularly used to meet operating expenses, including salaries.
For example, the letter says that in financial year (FY) 2018/19, Necsa raided R268-million from the Safari low-enriched uranium (LEU) spent Fuel Waste Disposal Fund, which was meant for future disposal of spent nuclear fuel waste, in order to meet operating costs.
The Safari-1 reactor became one of Necsa’s cornerstone facilities, especially during the mid 1990’s, where it’s main application was to be a cost-sustainable facility operating as a commercial production facility of radioisotopes and the rendering of irradiation services.
Furthermore, in FY 2017/18, the letter indicates that Necsa borrowed R58,5-million from its subsidiary, NTP Radioisotopes, which was to be repaid in 2019, but was subsequently unilaterally extended to 2021 when it became clear that Necsa could not afford to repay NTP Radioisotopes.
In FY 2016/17, Necsa is said to have used R100-million of investments of the Safari LEU Spent Fuel Waste Disposal Fund as security for a R100-million overdraft facility from Nedbank, which the bank later withdrew due to the absence of a turnaround strategy to address Necsa’s strained financial position.
This, according to the letter, then forced Necsa to raid R100-million from the Safari LEU Spent Fuel Waste Disposal Fund to meet operating costs, and this R100-million was later repaid to the Fund from government grant funding.
The effect of the unconventional funding interventions in previous years, says the letter, was that about R445-million of ring-fenced funds were used for operations, despite being meant for other purposes, thus negatively affecting Necsa’s liquidity and solvency.
The letter further says that Necsa has been technically bankrupt since about 2016, and has survived using ring-fenced funds, which has cumulatively had an impact on the going concern status on the entity – a challenge which the current board is now faced with.
This letter from the new Necsa board to Parliament follows a damning audit report by the Auditor General of South Africa detailing the maladministration and irregular expenditure under the former Necsa board. The qualified audit report was attached Necsa’s financial statements for FY 2017/18, which were tabled about six months late by the former board.
Necsa’s financial statements for FY 2018/19 are also late, as the new board grapples with the political turmoil and disruptive actions by labour union NEHAWU. It is expected that there will be further explosive revelations by the Auditor General.
The entire former board of Necsa was removed by the former minister of energy, Jeff Radebe, in December 2018, and there is ongoing litigation in this regard.
South Africa scraps Russian nuclear plant plans
Energy Minister Gwede Mantashe said this week that South Africa is still in the market for nuclear energy, provided it can be purchased economically.
The financially hamstrung Electricity Supply Commission is becoming a millstone around the exchequer’s neck, by failing to meet its crippling debt burden…… http://en.rfi.fr/africa/20190824-south-africa-cancel-russia-nuclear-plant-order-economy-ramaphosa
The sorry history and sorry future of nuclear power in South Africa
Shutting down SA’s nuclear future https://www.news.uct.ac.za/article/-2019-07-16-shutting-down-sas-nuclear-future16 JULY 2019 | STORY DAVID FIG. Located 33 km west of South Africa’s capital city Pretoria, the Pelindaba precinct has been home to South Africa’s official nuclear research corporation since the 1960s. The Nuclear Energy Corporation of South Africa (NECSA) hosts the country’s earliest nuclear reactor, originally designed to take weapons-grade uranium. It was also the original site for the development of nuclear weapons under the apartheid government between 1978 and 1990.Over the years the corporation has experimented with reactor development, uranium enrichment, fuel fabrication, and the production of isotopes used in nuclear medicine.
In the years to 1994, it was given relatively free range with budgets and personnel to conduct these experiments. The whims of nuclear scientists were indulged as they were seen to be essential to apartheid’s semi-clandestine weapons, energy and sanctions-busting plans. However, many of these projects – except for the isotopes, which remain lucrative – have been abandoned. In recent years, governance has become dysfunctional. The corporation no longer sustains itself financially, there have been tensions between ministers and the board and the production of medial isotopes ceased for over a year. Long-standing problems Problems in the running of the corporation have been evident for some time. Earlier this year the former energy minister Jeff Radebe dealt with the growing internal problems by suspending and later firing the CEO, Phumzile Tshelane. He also took steps to fire the organisation’s entire board. Radebe acted because he claimed the board had failed in its fiduciary duties. This included oversight of the shut down of the production of isotopes for over a year, rendering NECSA in grave debt. Another reason was the signing of a deal with Russia’s Rosatom to build two “solution reactors” in South Africa. Radebe regarded the co-operation agreement irregular. In December 2018, Radebe appointed former NECSA CEO Rob Adam as the new non-executive chair of the board. In July this year Adam confirmed he had resigned. In seven months the task of restoring NECSA to functionality had become too onerous and time-consuming. Adam’s resignation signals grave difficulties faced by NECSA in its attempts to restructure and improve its balance sheet. Most worrying is that NECSA has spun off its former waste management responsibilities to a recent formation, the National Radioactive Waste Disposal Institute, which has also experienced severe governance problems. The future NECSA was the heir of an earlier Atomic Energy Board, which entered its life at the outset of the apartheid regime on 1 January 1949. At the time there was much debate about where to locate atomic research. Some sections of the scientific establishment argued that it should become part of the government-sponsored Council for Scientific and Industrial Research (CSIR). However, security and military issues prevailed and atomic research was hived off into its own enterprise. South Africa, in deciding on NECSA’s future, should consider that for the present the country has decided to give up its nuclear ambitions, specifically in the area of energy generation. In 2010 the government wound up South Africa’s attempts at designing a high-temperature small-scale reactor, the Pebble Bed Modular reactor. The project failed to attract foreign investors and customers, and Eskom was reluctant to become a guinea pig. Cost and time overruns became too burdensome. Expensive enrichment technologies had also failed to become cost effective, and when unhooked from bomb production, were terminated. Isotope production is still viable. But the question is whether it requires an entire Pelindaba-sized research establishment to proceed. The reactor is now too elderly to have a bright future, and there’s no money to replace it. South Africa’s plans to build a series of nuclear power stations, championed by former president Jacob Zuma, were halted in 2017. This followed litigation by two environmental NGOs – Earthlife Africa and the Southern African Faith Communities’ Environmental Institute. This decision, as well as the draft contents of the Integrated Resource Plan 2018 underscore that, for the time being, extra nuclear capacity is unviable. What to do with the facility Now that South Africa no longer ascribes to a nuclear energy future, it is legitimate to consider what to do with the Pelindaba facility. The suitably pared-down nuclear research establishment needs to be reconceptualised and relocated. NECSA should be dismantled and its legacy projects, where viable, should be housed inside institutions like the CSIR and the universities. Nuclear scientists could be retired or retrained, while the rest of the workforce could be subjected to a “just transition” along the lines proposed in the carbon-intensive industries. Pelindaba as a precinct could be repurposed. First the nuclear waste from previous activities which is housed in numerous buildings and trenches at Pelindaba would need to be decontaminated and removed, so that future users can avoid any exposure to radioactivity. The site could become a new campus dedicated to innovation in the field of sustainable energy and related sciences. Subsidies once dedicated to nuclear research could be redirected to repositioning South Africa as a leading energy innovator in the global South. The new Pelindaba could also be dedicated to finding Africa-wide solutions to the climate crisis. Part of the site could also be dedicated to promoting nuclear disarmament. After all, the Treaty of Pelindaba declared the African continent a nuclear weapons-free zone. South Africa, the first country to give up its nuclear weapons, has a duty to the rest of the continent to champion nuclear disarmament. Repurposing of Pelindaba would be a just, cost-effective and practical solution to the problem of taxpayers continuing to support an increasingly dysfunctional NECSA, especially since nuclear energy is no longer seen as a viable way forward. David Fig, Honorary Research Associate, University of Cape Town. |
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