Electricity Minister, Kgosientsho Ramokgopa has announced that South Africa will initiate a procurement process for an additional 2,500 megawatts (MW) of nuclear power to tackle blackouts that have crippled the nation.
The first of the new units will likely be operational in 2032 or 2033, Department of Energy Deputy Director-General for Nuclear Zizamele Mbambo told reporters Tuesday in the capital, Pretoria.
According to data provided by Eskom, South Africa is facing a severe electricity crisis in 2023, surpassing the levels of power cuts experienced last year.
The crises is primarily attributed to the frequent breakdowns of Eskom’s ageing coal-fired plants
With elections looming next year and public outrage mounting about the energy deficit, President Cyril Ramaphosa appointed Electricity Minister Kgosientsho Ramokgopa to his post in March to oversee the government’s response to the crisis, Bloomberg reported.
One of the two units at South Africa’s only nuclear power facility, the 1,860-megawatt Koeberg plant near Cape Town, underwent maintenance for nearly a year until November.
Eskom is gradually restoring it to full service. The second unit is currently offline for similar upgrades.
In 2021, Eskom submitted an application to the National Nuclear Regulator seeking an extension for the operation of Koeberg Unit 1 until July 2044 and Unit 2 until November of the following year.
South Africa’s persistent power problem has had a severe impact on its economy, taking a huge chunk out of its GDP.
The central bank estimated that $51 million is lost every day due to load shedding. Last month, Multichoice, Africa’s biggest pay-TV company posted a net loss of 1.32 billion rands ($72.4 million) for the six months, partly attributed to the persistent power outages in the country.
The regulator is expected to provide a recommendation on the license in March, with a final decision anticipated in July.
Funding to tackle power crises in South Africa
The country has faced rolling blackouts after years of mismanagement of the state-owned utility, Eskom, prompting the authorities to ease the registration process and licensing requirements for energy production to encourage private sector investment.
In November 2022, the World Bank approved $497 million in financing to decommission and repurpose one of Eskom’s coal-fired power plants.
This October, the World Bank engaged in discussions regarding a possible $1 billion loan to support South Africa’s efforts to revamp its energy sector.
The same month, the country secured $676 million in grants from wealthy nations to support its transition to green energy.
