The 9 600 MW nuclear energy new build programme will only proceed after a \u201cthorough and transparent tender process\u201d, according to Treasury\u2019s budget review.<\/p>\n
Following on from President Jacob Zuma\u2019 State of the Nation address this month, Finance Minister Pravin Gordhan\u2019s budget review said \u201cgovernment will only expand such capacity at a scale and pace that is affordable\u201d.<\/p>\n
It added that nuclear power \u201cinvolves substantial upfront costs\u201d.<\/p>\n
However, it said that over the longer term, \u201cgovernment has identified the need to expand production of nuclear power within South Africa\u2019s overall energy mix\u201d.<\/p>\n
In his budget address, Gordhan said Department of Energy (DoE) Minister Tina Joemat-Pettersson will oversee the preparatory work for investment in nuclear power.<\/p>\n
\u201cFunds were reprioritised to appoint a transactional advisor to assist the DoE with the call for proposals for the nuclear build programme,\u201d Treasury said.<\/p>\n
\u201cAn amount of R200m has been set aside to support preparatory work for nuclear procurement.\u201d<\/p>\n
This amount was allocated by former Finance Minister Nhlanhla Nene in his mini budget in 2015.<\/p>\n
The statements over nuclear come after cabinet authorised the DoE to push ahead for request for proposals in December 2015, after which a government gazette was published.<\/p>\n
On Tuesday, Joemat-Pettersson\u00a0 told parliament that the nuclear programme should be run by the Independent Power Producer (IPP) office.<\/p>\n
The renewable energy IPP procurement programme has been praised internationally for government\u2019s successful partnership with the private sector, Joemat-Pettersson told the Portfolio Committee on Energy.<\/p>\n
The IPP office is a partnership between the DoE, Treasury and the Development Bank of South Africa and Joemat-Pettersson also wants the auditor general to form part of office.<\/p>\n
\u201cIf the IPP programme has delivered such good results, then we believe we are on the right track,\u201d she said.\u00a0 \u201cWe now have an IPP for gas and coal and hence our request to do nuclear along the IPP base.\u201d<\/p>\n
\u201cWe have a credible and sound unit that has worked with private sector of government,\u201d she said.<\/p>\n
While the Democratic Alliance approved of the proposal, she faced stiff resistance from her own party, the African National Congress.<\/p>\n
Fin24<\/em><\/a><\/p>\n Minister wants SA nuclear programme under IPP office<\/a><\/strong><\/p>\nMore energy news<\/h3>\n