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  • SAB reiterates calls for revised approach to excessive beer excise tax increases
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    Government is disproportionately reliant on the beer-making industry for excise duties, which accounted for 34.7% of total excise revenues in the 2023/24 financial year, JSE-listed beer maker South African Breweries (SAB) has said.
    Over the past few years, the company has made repeated appeals to government to reconsider its approach to beer taxation policies.
    In a report on the burden of unpredictable excise taxes and high inflation on beer producers and consumers in South Africa, of which the key findings were published on September 16, it was pointed out that the trajectory in excise duties on beer had evolved significantly, often increasing above projected inflation, consumer price index (CPI) inflation outcomes and retail prices, which had led to higher prices for consumers, elevated production expenses and unpredictability for producers.
    The full report, compiled for SAB by Oxford Economics Africa, will be published later this month.
    The key findings indicate that a 1% increase in beer prices above inflation consistently results in a 0.9% decline in demand for the beverage.
    "Sharp increases in excise duties during periods of high inflation and weak economic growth can dampen consumption, productive potential and fiscal receipts," Oxford Economics Africa lead economist: Africa consulting Deon Fourie said at the release of the key findings at the JSE, in Sandton.
    The key findings showed that for every 1% increase in economic growth, excise tax receipts on beer rose by an average of 1.8%.
    Higher production costs, excise duties and inflation in South Africa have increased beer prices substantially, with a 500 ml bottle having more than doubled in both price and taxes over the past decade.
    "What [government is] effectively doing is taxing low-income people disproportionately. Beer is being hit more, and maybe because the volumes are large and a larger portion of the population consumes the product.
    "However, [government is] hitting the masses and not the rich, so it doesn't really make a lot of sense," South African Institute of Taxation CEO Keith Engel said at the event.
    Fourie criticised government's approach, saying that the over-taxation was beginning to show diminishing returns, noting that, while nominal excise receipts increased by an average of 9% a year from 2012/13 to 2023/24, real excise revenues have grown more slowly by 3.5% a year, with rate-adjusted collections rising by only 1.7% a year.
    He said nominal excise revenues from beer managed to increase by only 2.4% year-on-year in 2023/24, implying that expectations for higher tax receipts from beer may not materialise.
    "This indicates that persistent above-inflation duty hikes have become less effective over time, leading to reduced responsiveness in fiscal income.
    "Ongoing sharp escalations in duties can adversely affect revenue collections and consumer behaviour driving some people towards other excisable products or the illicit alcohol market," Fourie explained.
    The key findings show that South Africa's overall tax burden on beer, made up of excise duties plus value-added tax (VAT), has risen acutely since 2012/13 by 161.3% to R33.4-billion in 2023/24.
    Although beer excise revenues accounted for only 1.1% of South Africa's aggregate fiscal income between 2012/13 and 2023/24 on average, elevated duties on the beverage had an outsized adverse influence on the sustainability of the beer value chain, the people employed therein, and the economic activity it supported, Fourie pointed out.
    The country's excise regime and overall tax burden target for beer have been altered four times since 1994/95. The previous overall tax burden target for beer was 35% in excise plus Vat, which was last changed in 2015/16 to 23% of the beverage's weighted average retail selling price (Warsp) in excise duties only.
    However, ...
    8 min
  • Transparent solar glass for generating power from building facades launched in South Africa
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    Through a collaboration between Australian glass solar technology developer ClearVue and local technology distributor Concept Business Solutions, a novel transparent glass solar panel technology for use in building facades has been launched in South Africa.
    Concept Business Solutions will be the licensed distributor of the ClearVue technology in South Africa, which will be branded as ClearPV locally.
    ClearPV is an insulated glass unit (IGU) window that can generate up to 30 W of electricity per square metre, while maintaining the window's transparency and the building's aesthetics.
    Incorporating building-integrated photovoltaic (BIPV) technologies, ClearPV technology can be used as a building envelope solution that supports buildings in achieving sustainability objectives with near net-zero performance.
    The range incorporates not only transparent solar glass panels but also opaque solar facades in various styles, as well as solar spandrels, skylights and balustrades. These various components of the building envelope are capable of providing a combined energy output of up to 200 W/m2, resulting in between 50% and 100% of a building's energy requirements being met.
    "Our mission is to support the decarbonisation of the built environment by designing products that improve the energy efficiency of buildings through thermal performance and the production of clean energy on site.
    "And we do both. We produce it on site, and of course, it's clean energy," ClearVue founder and chairperson Victor Rosenberg said at the ClearPV South African launch, in Sandton, on September 12.
    He emphasised that the built environment must be included in any meaningful solution to meet global net-zero emission aspirations, as it represented about 40% of yearly global CO2 emissions.
    "The built environment requires innovative solutions where energy can be generated to lessen the need to draw power from carbon-producing energy sources. ClearVue is building a bridge between the construction and renewable-energy industries," he said.
    Concept Business Solutions MD Craig Boyd told Engineering News that while opaque solar facade technologies exist on the market, ClearPV is unique because it allows up to 70% of light through, thereby barely affecting visibility at all, while simultaneously providing a thermal benefit to reduce heating/cooling energy requirements through a reduction of the solar heat gain coefficient.
    The ClearPV panels are made using polyvinyl butyral (PVB) glass, which is a laminated glass made with a layer of PVB resin sandwiched between two layers of glass. This design enhances the safety and durability of the glass.
    The ClearPV technology, which is made up of nano and micro materials, is embedded into the PVB layer.
    "We can convert ultraviolet to infrared rays, and then the light is pushed to the edges where it is converted into electricity. We also form a heat shield, because we do not allow a lot of infrared to get through. So it has both thermal and optical properties that can reduce the cooling load by about 22%," Rosenberg explained.
    Presenting the technology, which has been implemented in several successful case studies in Australia, Rosenberg said the average rate of return on the investment is estimated to range between about two to eight years, depending on the size of the investment, applicable jurisdictional benefits and incentives for carbon-reduction investments, advantageous weather conditions, and the building's energy consumption requirements.
    Boyd said that a major South African glass manufacturer was in discussions to assemble the product locally, combining ClearVue's patented solar technology, manufactured in Australia, with locally made glass panels.
    However, he said the aim is to have the full product manufactured in South Africa as soon as possible.
    4 min
  • Ramokgopa to seek advice from team of experts before taking next nuclear steps
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    Electricity and Energy Minister Dr Kgosientsho Ramokgopa is assembling a committee of experts to advise him on the role that nuclear could play in South Africa's future supply before issuing a new Ministerial determination for the possible procurement of 2 500 MW of new nuclear capacity.
    He has also reiterated that any possible future procurement would arise only if it was deemed to be affordable and after a "credible" public consultation process, acknowledging that the two previous procurement attempts had been "soiled" by a lack of transparency and allegations of malfeasance.
    In August, Ramokgopa withdrew a Section 34 determination Gazetted in January for the procurement of 2 500 MW of new nuclear capacity after legal challenges by the Southern African Faith Communities' Environment Institute and Earthlife Africa Johannesburg, as well as the Democratic Alliance highlighting irregularities with the notice, including a lack of public consultation relating to the regulator's concurrence with the determination.
    An indication was then given by the Department of Mineral Resources and Energy (DMRE) that a new determination would be prepared for consideration by the National Energy Regulator of South Africa (Nersa), with any concurrence arising to be subject to a proper public consultation process.
    Speaking at a briefing on the sidelines of a DMRE nuclear summit held in Gauteng on September 12, Ramokgopa reported that he would also first be seeking the advice of an expert advisory group, which was currently still being assembled and the identities of the individuals were, thus, not provided.
    "We're putting together that expert team that will advise me in answering the question on the pace and scale that we can afford," he explained, referring to Decision 8 in the Integrated Resource Plan of 2019 (IRP 2019), which requires that any nuclear build programme should be pursued at an affordable pace and modular scale.
    Although the IRP 2019 is in the process of being updated, Ramokgopa made no commitment to delaying the nuclear determination and procurement process until the update was Gazetted.
    "The panel will advise on how we will unfold the process," he added, while providing and assurance that the process would be "subjected to public participation".
    In parallel, work was also continuing on the possible procurement framework, with the DMRE having indicated that three options could be proposed to Cabinet: once where Eskom was the shareholder and operator; a second where Eskom was the operator and a majority owner, but with private ownership making up the balance, and the last where the private partner was the majority owner but Eskom remained the operator.
    Speaking at the nuclear summit itself, Ramokgopa expressed strong support for additional nuclear capacity, in addition to extending the operating life of the two reactors at Koeberg, with Unit 1 having already secured a licence to operate for a further 20 years and Unit 2 having applied for a similar life extension.
    He also labelled some of the current opposition to the technology as uninformed and frivolous and urged nuclear scientists to defend their discipline and "articulate a coherent and compelling story of nuclear".
    In a virtual address, International Atomic Energy Agency director-general Rafael Grossi argued that there was a growing acceptance of the technology's role in meeting the net-zero objectives, following the scepticism that had arisen in the wake of the Fukushima disaster of 2011.
    "Some people say there's a nuclear renaissance. No, I don't think so. I think there is a return to realism," Grossi asserted.
    He said that was reflected in the COP28 declaration, which included a commitment to advance a global aspirational goal of tripling the nuclear energy capacity of 2020 by 2050.
    "This indicates that there is a c...
    4 min
  • EIB, DBSA increase funding for private renewables projects to R11.9bn
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    The European Investment Bank (EIB) has approved another €100-million (R1.98-billion) loan in support of the Development Bank of Southern Africa's (DBSA's) Embedded Generation Investment Programme, which is supporting the development of private solar PV and wind projects in South Africa.
    The funding will be matched by the DBSA and is additional to the first €400-million (R7.9-billion) matching loan approved by both development finance institutions in 2022, increasing overall funding for the upscaling of small and medium-sized renewable-energy projects to €600-million (R11.9-billion).
    The independent power producer projects supported by the scheme are expected to have a combined capacity of 384 MW.
    The financing is described as concessional, although no details were provided. It forms part of the EU's Global Gateway strategy for clean and sustainable infrastructure, and is additional to the bloc's €1-billion (R19.7-billion) Just Energy Transition Partnership commitment to support South Africa's decarbonisation efforts.
    EIB VP Ambroise Fayolle confirmed the new loan at a signing ceremony held at the DBSA, having earlier presided over the opening of the bank's Regional Hub for Southern Africa and the Indian Ocean, located at new premises in the Menlyn Maine precinct of Pretoria.
    Fayolle, who announced new loans worth €300-million (R5.9-billion) during his visit, said the regional hub would strengthen the EIB's presence in the region, where he said the need and opportunity for green-transition funding was great.
    The hub's team comprises investment and policy specialists - backed by economists, engineers and other experts at the EIB's headquarters in Luxembourg - who will support investments in South Africa and across 13 more countries in Southern Africa and the Indian Ocean.
    To date, the EIB has invested €8.3-billion (R164-billion) in the region.
    The Pretoria office joins three other regional hubs on the continent, with the others located in Nairobi, Abidjan and Cairo.
    EU Ambassador to South Africa Sandra Kramer said she was delighted by the expansion and consolidation of the EIB's footprint in South Africa, arguing that it showed the strength of the close partnership between the EU and the Southern Africa region.
    Meanwhile, DBSA CEO Boitumelo Mosako described the new EIB loan as an exciting step forward as the bank moved to increase its financial support for renewable energy.
    "With funded projects now coming online and contributing to the energy grid, we are proud to play a role in driving sustainable growth and energy resilience for South Africa," Mosako said.
    3 min
  • East London port gets two new tugs, TNPA wraps up fleet renewal programme
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.

    The Port of East London has taken ownership of two new tugboats, marking the end of the Transnet National Ports Authority's (TNPA's) R1-billion marine fleet renewal programme, aimed at boosting tugboat availability and, thus, enhancing shipping operations at its facilities.
    This renewal programme is a key element in Transnet's ports recovery plan, with the tugs to provide marine services such as the safe navigation of vessels, as well as pilotage and towage, while they should also assist in combatting waterside pollution.
    The two tugs were delivered by Damen Shipyards Cape Town (DSCT). They replace the existing tug fleet that has reached its operational lifespan at the East London port.
    The vessels were built with an azimuth stern drive, and have an improved pollard pull of 60 t compared with 43 t on the existing tugs.
    The procurement of the tugs forms part of the expansion programme at the Port of East London, says the TNPA.
    This includes the long-awaited deepening and strengthening of the port's automotive berth in order to address berthing challenges.
    The concrete works on this project started in November last year.
    Once completed, the port will be able to simultaneously berth two larger vessels, which should ensure increased volumes at the port.
    Mercedes-Benz South Africa exports the C-Class passenger car through the Port of East London.
    Also included in the river port's expansion plan is the delivery in this financial year of two jib cranes for the port's dry dock facility, which will increase capacity at this ship repair facility.
    "The journey towards the full recovery of Transnet lies in our commitment to grow and invest in fit-for-purpose equipment," says Transnet chairperson Andile Sangqu.
    "The [tug boat] acquisition is a crucial investment towards creating a sustainable port system and will enable the execution of strategic projects currently underway at the Port of East London."
    At a christening ceremony for the new acquisitions, tug Lentswe - meaning the voice of sailors - was unveiled by TNPA board member Valda Gossmann in her role as the tug's sponsor, while tug Kganya - light, symbolising guidance in safe navigation of vessels - was christened by Transnet board member Boitumelo Sedupane.
    The tugs' names were selected through a competition among TNPA employees.
    The two tugs are in addition to five tugs which were delivered at the Port of Durban in August.
    "The vessels represent a substantial investment in our maritime infrastructure and will contribute to local job creation and skills development, as DSCT will provide all operational support, including spares, repairs, and services," notes DSCT director Sefale Montsi.
    3 min
  • R628m in EU grants to support South Africa’s goal of building green-hydrogen ecosystem
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    The European Union (EU) has announced R628-million (€32-million) in grant funding to support the development of South Africa's nascent green-hydrogen industry, as well as to facilitate net-zero-related investments across Transnet's rail, port and pipeline operations, including to prepare them for the production and storage of green hydrogen.
    The grants are additional to the EU's Just Energy Transition Partnership funding with South Africa and were confirmed by European Commissioner for Energy Kadri Simson at a briefing in Pretoria on Monday, where she also met South Africa's Electricity and Energy Minister Dr Kgosientsho Ramokgopa and Trade, Industry and Competition Minister Parks Tau.
    The financing is being made available by EU development finance institutions in line with a 2013 infrastructure programme agreement with South Africa and would be disbursed in partnership with South Africa's Industrial Development Corporation.
    The precise mechanism for distribution had not yet been finalised but Simson confirmed that the funding was immediately available to support both initiatives.
    Simson said the R490-million grant to support the development of a green-hydrogen industry was "highly additional" and was expected to leverage R10-billion in private and public funding across value chain, including production, transportation, storage and downstream industries.
    The R138-million grant to Transnet, meanwhile, would be channelled through AFD, of France, and would be used for feasibility studies and pilot projects focused on the production and storage of low-carbon hydrogen.
    Confirmation of the new grant funding came ahead of the launch of an EU matchmaking platform to link European offtakers of green hydrogen with non-European producers, including those that could emerge in South Africa and Namibia. The platform is scheduled to be launched in 2025.
    Simson indicated that Europe's current yearly demand for hydrogen stood at about 10-million tons of mostly grey hydrogen, which would need to be progressively replaced with green hydrogen in line with EU policy and, thus, created a ready-made market. This, even before any rise in demand associated using hydrogen to displace fossil fuels in hard-to-abate sectors.
    Tau welcomed the funding and indicated that South Africa saw potential to become a leading producer of green hydrogen and derivative products, as well as for associated green industrialisation by way of South Africa becoming a producer of renewable-energy and electrolyser components.
    Green hydrogen is produced by using renewable electricity in an electrolyser to split water, including desalinated water, into hydrogen and oxygen.
    Ramokgopa, meanwhile, highlighted South Africa's ambition to become a global green-hydrogen production hub while cooperating with countries such as Namibia, which housed similar ambitions.
    Ramokgopa argued that through infrastructure- and knowledge-sharing South Africa and Namibia could improve their overall competitiveness as green-hydrogen investment destinations.
    Prior to her visit to South Africa, Simson addressed the Global African Hydrogen Summit in Windhoek, Namibia, and announced three Global Gateway funding initiatives, including a dedicated green-hydrogen investment facility.
    4 min
  • Business calls for soul searching on Nedlac’s future amid big socio-economic shifts
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    While reaffirming its commitment to the National Economic Development and Labour Council (Nedlac), organised business has again questioned whether the structure's current composition and functioning are "fit for purpose".
    Delivering the business constituency's report at this year's summit, which also marked Nedlac's thirtieth anniversary, outgoing Business Unity South Africa CEO Cas Coovadia highlighted key areas of priority for business, including rethinking the economic growth strategy, accelerating infrastructure development and reconfiguring government to enhance delivery.
    Business also wanted the social partners to acknowledge crises and act immediately, and expressed frustration that problems at the Unemployment Insurance Fund and Compensation Fund had been allowed to fester.
    "We, with social partners, have consistently raised concerns about the chaotic situation with the Unemployment Insurance Fund, including poor administration, weak governance and corruption.
    "This falls squarely with the Department of Employment and Labour, and we expect substantive progress towards resolving this," he said.
    However, Coovadia also posed five questions that business felt should be answered for Nedlac's future relevance to be ensured, including:
    How Nedlac's fit-for-purpose role should be crystallised in the evolving socioeconomic environment;
    Whether Nedlac was most effective when it sought to reach consensus on policy details, or rather when bringing social partners closer together on broad strategy and direction;
    Whether different options for social compacts should be encouraged, including bilateral, multilateral and issue-based compacts, while highlighting the success of the collaboration under way between government and business on electricity, freight logistics and crime as opposed to the prolonged and unsuccessful effort to agree on a "broad national social compact";
    Whether Nedlac should be an implementing body, or whether it should enable implementation of broad agreements through government and bilateral processes; and
    whether Nedlac was representative enough.
    He highlighted that the economic environment and the world of work had changed significantly since the formation of Nedlac as the official platform where labour, government, community and business met to consider labour-market and socio-economic policy and legislation and that it, thus, needed to adapt to remain "relevant and respected".
    Congress of South African Trade Unions general-secretary Solly Phetoe, by contrast, highlighted the role that Nedlac had played in recent years in facilitating consensus on how to tackle serious problems such as loadshedding.
    "Many critics have questioned the relevance of Nedlac, yet it is here that the Eskom social compact was finalised, giving momentum to the debt-relief package that today is helping Eskom to shift its focus to maintenance and ending loadshedding," Phetoe said.
    Nedlac executive director Lisa Seftel, meanwhile, urged both "continuity and change", arguing that Nedlac should continue to provide an inclusive platform for dialogue on socio-economic policies and Bills and labour-market reform.
    It also needed, however, to find a way for proactive collaboration on priority areas, as well as areas of threat, such as climate change.
    "The Government of National Unity provides for a narrow path of change, balancing reform for inclusive growth with cushioning workers, businesses and communities.
    "Lessons from 30 years of democracy show us that where social partners share similar concerns on critical areas, there is a solid basis for partnerships," Seftel said.
    4 min
  • Financial savings displacing loadshedding as main driver of residential solar market
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    The South African market drivers for residential, commercial and industrial solar PV and battery installations have started shifting towards cost savings from security of supply as loadshedding wanes, GoSolar CEO Andrew Middleton asserts.
    Although installations in 2024 are likely to be well below the 2.6 GW installed during the height of the country's loadshedding crisis last year, the subscription home solar and battery company still expects about 1 GW of small-scale PV to be installed this year.
    Speaking during an EE Business Intelligence webinar, Middleton said 350.5 MW of rooftop solar capacity were added during the second quarter of 2024; a period that coincided with the tapering of loadshedding, which has not been declared by Eskom since April.
    Installations were higher than those of the first quarter when an estimated 236 MW was installed, pointing to a market that was "still showing some resilience".
    In this more normalised context, new installations are being pursued primarily for the prospect of financial savings, particularly given indications that Eskom and municipal tariffs will continue to rise at rates well above inflation.
    While Eskom's tariff submission has not yet been published by the regulator, it is understood that it could result in tariff increases of close to 40% if fully approved by the regulator.
    "We are moving from a back-up market to a financial-return market," Middleton said, noting that the shift was more in keeping with global residential solar trends.
    GoSolar also estimates that its subscription prices are at a price parity "tipping point" in most cities across South Africa and are poised to fall below those being paid by direct Eskom customers, especially should the State-owned company secure the hikes for which it is expected to apply.
    These savings could be amplified further if home batteries were used to take advantage of the arbitrage opportunity that was likely to arise from the implementation of time-of-use tariffs.
    Given that South Africa's rooftop deployment has been underpinned hitherto by loadshedding, most households have coupled their rooftop PV systems with batteries. This is not the case in many other markets globally and could offer future system benefits, from peak shaving to "breaking the duck curve", a phenomenon associated with the daytime dip in demand as solar production rises.
    Middleton is concerned, however, about Eskom's proposals for tariff restructuring, describing suggestions that fixed charges comprise 70% of the tariff and variable charges only 30% as being out of step with global norms.
    While acknowledging that the value of the grid needed to be fully reflected in the tariff, he argued that a more balanced ratio would be required not only to be fair to residential customers with solar but also to prevent more well-off residents and businesses from defecting from the grid entirely.
    Financial savings were also emerging as the key consideration for those mines, factories and farms pursuing utility-scale opportunities, mostly through power purchase agreements with independent power producers.
    However, Energy Group director Tim Hill cautioned that there were new risks associated with calculating those savings in light of changes that could affect the way electricity markets functioned in future.
    Hill pointed to the prospect, for instance, of a move from monthly to hourly billing, the impact that the duck curve could have on prices at different times of the day, and likely changes to the structure of tariffs to include time-of-use charges and to reflect fixed-cost components.
    "A simplistic savings calculation based on your Eskom avoided cost, minus the tariff, and multiplied by the term of the commitment that you're making, is probably going to become quite a risky way to analyse the attractiveness of a project.
    ...
    4 min
  • DMRE moving with pace on new nuclear determination as technoeconomic questions mount
    This audio is brought to you by Endress and Hauser, a leading supplier of products, solutions and services for industrial process measurement and automation.
    South Africa's Department of Mineral Resources and Energy (DMRE) expects to finalise nuclear-procurement consultations in the coming two to three months before approaching the regulator for its concurrence with a new Ministerial determination for the procurement of 2 500 MW of new nuclear capacity.
    Electricity and Energy Minister Dr Kgosientsho Ramokgopa withdrew the Section 34 Ministerial determination he Gazetted in January ahead of a court hearing into whether the correct procedures had been followed prior to the National Energy Regulator of South Africa's (Nersa's) concurrence with the determination.
    Legal action opposing Nersa's concurrence on the basis of procedural irregularities was initiated by the Southern African Faith Communities' Environment Institute and Earthlife Africa Johannesburg, and on August 16 Ramokgopa withdrew the determination after he concluded that there had indeed been insufficient consultation.
    DMRE director-general Jacob Mbele told the Portfolio Committee on Electricity and Energy on September 4 that a new determination was being prepared and that public consultations would begin on September 12, when Ramokgopa was scheduled to host a 'nuclear summit'.
    Thereafter, various other stakeholder discussions would be held by the DMRE, which remained in place ahead of its separation into the Department of Electricity and Energy and the Department of Mineral Resources and Petroleum in line with the Government of National Unity's new ministerial demarcations.
    It is anticipated that Nersa will also be required to consult before providing any concurrence with the new determination, the publication of which is required before any public procurement programme can be undertaken.
    Questions about the rationality of proceeding with a new nuclear build are likely to be raised during both consultation processes, particularly given that government and Eskom's previous nuclear procurement attempts have been shrouded in controversy, geopolitical intrigue, allegations of corruption and unanswered questions about funding and affordability.
    Technoeconomic opposition is also likely to be strong, given uncertainties around South Africa's future electricity demand trajectory and the role that inflexible nuclear generators will play in the country's evolving mix, which is beginning to shift from its current over-reliance on coal to higher levels of variable renewable energy.
    The timing of the consultations ahead of the publication of an updated Integrated Resource Plan (IRP) for electricity is also certain to raise concern, particularly given that the 2 500 MW is included in an IRP 2019 that includes outdated demand and technology costs assumptions, including highly favourable cost assumptions for new nuclear when compared with costs emerging elsewhere in the world; a point highlighted by the Democratic Alliance's Kevin Mileham during the meeting.
    PARLIAMENTARY QUESTIONING
    Several other technoeconomic issues were aired by members of the portfolio committee, with Mileham also questioning whether the department had conducted a cost analysis for nuclear under the likely scenario where the new power stations might load-follow far cheaper renewables generation and, thus, operate at lower-than-designed availability factors. He also cautioned about the threat of South Africa becoming a "guinea pig" for small modular reactor (SMR) designs that remained unproved commercially.
    Economic Freedom Fighters' Nazier Paulsen, meanwhile, questioned whether a nuclear new build was still feasible given the strain on the national fiscus. He also highlighted the risk associated with concluding a deal with a "a single vendor country, a single vendor company and a single vendor reactor design" to secure the economies of scale needed to reduce costs and stimulate localisation.
    However, the uMk...
    6 min

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