Race for SA power deal
The race to secure the contract for the full 9600MW of new nuclear power in South Africa is gathering pace‚ with French nuclear operators Électricité de France (EDF)/Areva saying it would not be feasible for a small country such as SA to opt for more than one technology.
Russia‚ China and France are the forerunners for the multibillion-rand contract.
It has been speculated that SA’s Department of Energy might award smaller contracts to more than one operator‚ rather than a single large contract. EDF’s project director in SA‚ Olivier Bard‚ said on Wednesday that the success of France’s nuclear programme was underpinned by its decision to standardise its fleet around the EPR water-pressure reactor.
China opted for several different nuclear technologies‚ which was possible for its size‚ but China’s own CP1000 reactor was based on the EDF/Areva 900MW reactor design.
For a country such as SA‚ it would not make sense for investment in skills‚ codes and standards to opt for different technologies‚ Bard said.
Special envoy for the French-SA nuclear partnership‚ Pascal Colombani‚ said on Wednesday that the government’s Request for Proposals (RFP) for nuclear power‚ which was expected earlier this year‚ was now expected at any time before spring.
EDF is merging its reactor business with that of nuclear technology company Areva‚ which has suffered huge losses on weak market conditions and cost overruns on the delayed Olkiluoto nuclear plant in Finland.
Colombani said EDF’s financial position was sound‚ and its planned investments were well within its capacity. It was now effectively one company with Areva‚ and would make its bid in SA as EDF/Areva.
Recently‚ France’s independent Nuclear Safety Authority said it had found 400 irregularities in components in France’s nuclear power stations after instituting a full investigation prompted by the discovery of a “serious anomaly” at the Flamanville nuclear plant.
Colombani said the disclosures of engineering deficiencies showed the full transparency of France’s nuclear industry “and we wish our competitors will do the same”.
The investigation was into the processes and the quality of the components‚ but it had not identified any major problems.
The EDF/Areva bid in SA would consist of several chapters including on technology‚ training‚ localisation and financing‚ Colombani said.
Financing will be a mix of debt and equity‚ but will be determined after the RFP requirements are known.
EDF/Areva is working on a financing package that would be acceptable to Eskom and the SA government. Colombani declined to put a figure on the cost for SA’s nuclear programme‚ as conditions varied from one country to another.
Bard said on the equity component‚ Eskom had indicated it wanted to be operator and owner‚ and had proven itself to be a good nuclear operator.
“Nuclear power is a sovereign decision and‚ in terms of equity‚ our offer will be designed so SA maintains full control over the life of the project‚” Colombani said.
EDF/Areva would like to include investments from both South African and French entities in the project‚ he added.