Treasury will ensure it protects South Africa\u2019s fiscal integrity with regard to South Africa\u2019s nuclear procurement plan.<\/p>\n
Finance Deputy Minister Mcebisi Jonas told media on Wednesday that Treasury will continue to play a role in the planning of the nuclear procurement programme.<\/p>\n
\u201cWe take a view that whatever happens with the nuclear project, it \u2026 won\u2019t undermine the interests of the country as a whole,\u201d he said. \u201cAs custodians of fiscal integrity, we will continue to play a critical role.\u201d<\/p>\n
The big question around nuclear is whether it is even required, with the rise of cheap renewable energy.<\/p>\n
Treasury director general Lungisa Fuzile told media on Wednesday that the \u201cenergy space is for now guided by the 2010 IRP (Integrated Resource Plan)\u201d.<\/p>\n
\u201cWe all know that is what the policy is now,\u201d he said. \u201cWhat we also know is that there is a process underway to review and possibly revise that plan.<\/p>\n
\u201cThat process is quite advanced,\u201d he said. \u201cIt is only when that gets revised policy that resets the targets on different technologies that a new policy can take effect.\u201d<\/p>\n
The IRP, which was first released by cabinet in 2010, said new nuclear energy was required before 2030. The plan was supposed to be updated every two years. It has been claimed that because the requirement for nuclear energy dropped in the 2012 version and beyond, cabinet ignored its adoption.<\/p>\n
Six years have passed and the Department of Energy recently promised its release by the end of September. Then it stalled once again. The new IRP could indicate that nuclear energy will only be required after 2030, which would make the 9.6 GW nuclear procurement plan unnecessary.<\/p>\n
Fuzile said it was not ideal that the IRP had not been updated. \u201cTechnology changes and a whole host of things change,\u201d he said in a response to a question by Fin24. \u201cRelative cost of different technologies change.<\/p>\n
\u201cThe best thing is to have updates as regularly as possible,\u201d he said, but said it is not \u201cwritten in law\u201d.<\/p>\n
He said Treasury has a chance like all other departments to \u201cinfluence and shape the process of revising the IRP\u201d.<\/p>\n
Once it is implemented, it makes sense for everyone to play by this plan, he said.<\/p>\n
Jonas reminded media that policy \u2013 like the IRP \u2013 is the responsibility of government and not state owned entities.<\/p>\n
\u201cTreasury has agreed to have a conversation with (Public Enterprise) Minister (Lynne) Brown and (Energy) Minister (Tina) Joemat-Petterrson to have conversations about the issues raised to ensure we have cohesion.\u201d<\/p>\n
Matshela Koko, Eskom\u2019s head of generation, often uses media platforms to advocate for nuclear energy, while criticising renewable energy.<\/p>\n
Last week, he wrote that the \u201cexorbitant\u201d renewable energy independent power producer programme tariffs from bid windows 1 to 3.5 \u201ccontinue to be unaffordable and require a revised funding model that does not prejudice the consumer\u201d.<\/p>\n
In its mini budget statement on Wednesday, Treasury warned that further expansion of electricity generation capacity should be guided by the IRP.<\/p>\n
\u201cFurther expansion of electricity generation capacity will be guided by the Integrated Resource Plan and the Integrated Energy Plan, which should be alert to the risk of over-investment,\u201d it said.<\/p>\n
\u201cIdle electricity capacity will require higher electricity prices, with negative consequences for economic growth,\u201d it said.<\/p>\n
Fin24<\/a><\/p>\n Eskom will finance South Africa\u2019s R1 trillion nuclear plans: minister<\/a><\/strong><\/p>\nMore on Nuclear<\/h3>\n