MEDIA STATEMENT: WITHDRAWAL OF DETERMINATION UNDER SECTION 34(1) OF THE ELECTRICITY REGULATION ACT, 2006 (ACT NO. 4 OF 2006) DETERMINATION FOR THE PROCUREMENT OF NEW NUCLEAR ENERGY GENERATION CAPACITY

By Thabisho Kgaditsi on 8/16/2024

In January 2024, with the adherence to applicable legislation and following concurrence from the National Energy Regulator of South Africa (NERSA) the Minister in the Presidency for Electricity, published a determination by way of notice in the government gazette, announcing the Government’s plan to proceed with the process to procure and undertake a nuclear-build programme. This initiative aims to augment South Africa’s baseload capacity and strengthen our energy security, by leveraging clean, affordable and reliable energy sources.

Following this publication, an application was launched to interdict the process. In reviewing options in response to this litigation, the Minister reaffirms government’s commitment to a nuclear-build programme and is equally committed to ensuring that the process is completely underpinned by the principle of openness, and transparency.

Based on a thorough review of the facts placed before the Minister, the balance of probabilities, and notwithstanding the process and decision of the regulator, the Minister has taken a view that the integrity of the process should be unquestionably held in the highest consideration. In light of these circumstances, the Minister has elected to withdraw the Determination published on 26 January 2024.

In so doing, the Minister will direct a process that affirms and asserts procedural fairness, and draws from the rich body of knowledge of industry experts and communities in shaping a submission to the Regulator.

Nuclear energy is, and will remain, a critical component of South Africa’s energy mix, offering a low-carbon, reliable source of electricity that can contribute significantly to the country’s energy security and climate goals.

Government’s rational for the new nuclear build programme remains underpinned by following critical factors:

1. Nuclear is critical for Just Energy Transition
There is a renewed international drive, well developed and supported global strategies and plans, to implement climate change resolutions which were adopted at several climate change and related conferences. Nuclear energy, because of its marked advantages in comparison to other energy sources, stands to play a critical and central role in meeting the Just Energy Transition objectives to net zero carbon emissions in future. The International Energy Agency Net-Zero Roadmap document propose that about 17GW of nuclear will be required per annum to achieve the global climate change target.

The European Union has taken a positive stance on the inclusion of nuclear and gas in their green taxonomy. The United Kingdom and United States of America includes nuclear in their green hydrogen strategies. This enables investors and financial sectors in those regions to participate and invest in green activities.

The 28th United Nations Climate Change Conference (COP28) agreement recognizes accelerating nuclear energy as part of the solution. Accelerating nuclear energy has been recognize as a means to achieve deep, rapid and sustained reductions in greenhouse gas emissions in the Global Stocktake

In addition, the leaders, and representatives from 32 countries at the Nuclear Energy Summit this year backed measures in areas such as financing, technological innovation, regulatory cooperation and workforce training to enable the expansion of nuclear capacity to tackle climate change and boost energy security.

2. Nuclear provides baseload energy
Nuclear Energy provides baseload energy, which is critical for a developing State, which intends to transition from high to low carbon energy generation capacity sources. Nuclear energy will be used to support and complement other energy sources as the country prepares to transition away from high to low-carbon energy sources.

South Africa is a Member State of the International Atomic Energy Agency (IAEA) and a Permanent member of the IAEA Board of Governors. It has an advanced nuclear programme and is an acknowledged pioneer and leader in nuclear technology. The Ministry intends to continue implementing nuclear capacity to ensure the country's energy supply security.

ISSUED BY THE MINISTRY OF ELECTRICITY AND ENERGY