SA expanding nuclear

The department of energy will be devoting almost R1-billion to cementing South Africa’s nuclear energy expansion ambitions.

In her budget vote speech on Monday, Energy Minister Tina Joemat-Pettersson said that R850-million had been allocated to the department and its relevant agencies to undertake further research and development into nuclear energy, especially in regard to nuclear safety matters.

“Regulations for the handling of hazardous materials, in terms of international obligations, and the development of nuclear policies and legislation to ensure the peaceful use of nuclear energy will also be pursued,” she said.

How South Africa will finance the expansion of nuclear energy, beyond its single atomic power station Koeberg remains key. The procurement of 9 600MW of nuclear power is expected to cost between R400-billion and R1-trillion.

The state in the meantime has worries of its own, including a large budget deficit and rising government debt levels.

The minister did not reveal the final details of the new Cabinet subcommittee on energy security, which will be integral to plotting the course of nuclear in the country’s energy mix. It will replace the erstwhile Cabinet body responsible for nuclear procurement – the national nuclear energy executive coordinating committee. But she said the “process is being refined and Cabinet will pronounce on this matter shortly”.

Alongside nuclear plans, the department will be turning a renewed eye on the opportunities for gas, including shale gas, in the country’s energy mix.

The lack of infrastructure, including pipelines and storage facilitates had made it difficult for gas to feature as a major energy carrier in South Africa, said Joemat-Pettersson. This was despite the discoveries of extensive reserves in the region, including in neighbouring Mozambique, and off South Africa’s west coast.

The much-anticipated gas utilisation master plan would outline the infrastructure necessary “to open up the gas market for the residential, commercial and industrial sectors”. A draft of the plan was being finalised and would be taken through the Cabinet before being opened for stakeholder consultation, Joemat-Pettersson said.

The plan’s scope includes “investigating the development of a gas- receiving and storage terminal for liquefied natural gas, and to meet the gas to liquids requirements at the Mossel Bay refinery, as well as investigating the conversion of Eskom’s diesel plants,” she said.

This year, the department would also continue to refine the Independent Systems and Market Operators Bill. The Bill, which foundered in the legislature last year, is key to overhauling the electricity sector and improving the access of independent power producers.

Source: M&G

Land affairs minister damaging investor confidence in South Africa – Agri SA

Johannes Möller

Policy uncertainty is affecting investor confidence in the country, farmer union Agri SA president Johannes Möller said on Tuesday.

“It is important to guard against South Africa being seen as a risky, unstable and uncompetitive economy by investors,” he said in a statement.

“A visible lack of consensus on economic and social policy is undermining the feasibility of the National Development Plan and confidence in the country as an investment destination.”

Möller said that in light of the decline of the rand last week, the country’s economy paid a “high price” for uncertainty and its handling of problems in the labour market.

“The negative sentiment extends further than mere concern about wage demands and violent unrest,” he said.

“It is exacerbated by sharp increases in administered prices, such as those of electricity and fuel; unhappiness with and mass action due to poor service delivery; and, alarming statements regarding property-related issues.”

He said parliamentary debates on budget votes served as guidelines that local and foreign investors responded to.

Möller said Agriculture Minister Tina Joemat-Pettersson’s budget speech was “moderate”, and her support for farmworker organisations could contribute to further unrest in the industry.

He said Rural Development and Land Reform Minister Gugile Nkwinti’s budget speech ended on a “low note”.

Nkwinti said on Friday it was an “honour” to have South Africa’s land reform process compared to what had happened in Zimbabwe.

Möller said he hoped Nkwinti’s comments on land reform were made “in the heat of the debate”.

“However, the potential damage that remarks of this nature can cause should not be underestimated.”

Government had developed good policy documents, which would result in a better society if implemented effectively.

“The National Development Plan is a good example of this, which should be used more consistently by all role-players,” he said. – Sapa