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Energy minister to face questions over nuclear bid

Cape Town – The Democratic Alliance (DA) will on Tuesday ask Energy Minister Tina Joemat-Pettersson why Russia’s nuclear energy framework agreement looks like a signed deal.

Joemat-Pettersson will be briefing the Portfolio Committee on Energy in the National Assembly on the five international nuclear agreements.

The country is in the process of procuring a nuclear fleet to generate 9 600 megawatts of power, which could cost about R1trn.

Gordon Mackay, the DA’s energy shadow minister, told Fin24 on Monday he would ask Joemat-Pettersson “why the Russian framework agreement is fundamentally, materially and substantially different from any other framework agreements that will be tabled”.

“The other framework agreements signed... are all very boring, generalised documents,” he said. “The Russian document looks actually like a signed deal.

“We are going to want to understand from the minister why it is that the Russians are talking specifically about locations and sites for nuclear build plants and why, for example, the Russians have indicated that any risk that results from the procurement of nuclear from Russia will be for the South African state to manage and deal with.”

AUDIO: Interview with Gordon Mackay

SA says ‘no deal’ struck with any country on nuclear expansion

South Africa has not struck a deal so far with any country on nuclear expansion, but the immediate focus is to build more renewable power projects, Joemat-Pettersson said on Monday.

"There is no deal that has been struck with any country," Joemat-Pettersson told journalists at a media briefing near Pretoria.

She dismissed the projected cost of the nuclear build, saying National Treasury and the Department of Energy are still working on a funding model, without giving details.

"Once that model is complete, we will decide on timeframes," she said.

The government was due to release its bid requirements by the end of July, but this has been delayed.

Concern is mounting that agreements to build the nuclear power plants that could be the most expensive procurement in the country's history will be made behind closed doors, without the necessary public scrutiny.

"Once we have taken a decision as a government and cabinet, we will communicate. There is no secrecy," Joemat-Pettersson said.

Seven countries still in the running

President Jacob Zuma's government has signed agreements with France, Russia, China and South Korea. Energy officials said they were speaking to Japan, Canada and the United States about possible cooperation.

The process appears to be delayed following concerns that Treasury is not included in the procurement discussions, despite the budgetary implications.

Joemat-Pettersson said there is "no rush" for nuclear power, and that South Africa is focusing on renewable and gas power generation projects to address the immediate energy shortages.

"That is why we went ahead in announcing the additional acquisition of renewable energy, that’s why the renewable energy programme is so important, that is why gas is so important. It's our immediate solution to our current challenges," she said.

However, new renewable energy projects will find it hard to connect to the grid, an official said, saying that the department is working with power utility Eskom to improve access for new projects.

"We need to upgrade the grid so the new projects can feed," head of Independent Power Producers unit Karen Breytenbach told Reuters.

Zuma opened South Africa's first new power plant in 20 years on Sunday, with a warning that the perennial energy shortages are hampering economic growth.

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