Category Archives: NERSA

National Energy Regulator of SA

The South African government hasn’t given up the fight for nuclear

Hartmut Winkler, Professor of Physics, University of Johannesburg, in The Conversation, 17 May, 2017.

Nuclear energy in South Africa is a highly contested issue; so much so that a court recently ruled against the government’s plans to issue a contract for the construction of eight new nuclear power stations.

The ruling appeared to have delivered a significant blow to President Jacob Zuma, and those who support him, who had set their sights on immediate nuclear expansion. The court’s decision was met with jubilation by those opposing the nuclear plan.

The expectation was that the government would appeal the decision. It didn’t, but this shouldn’t be read as a shift in its thinking.

Minister of Energy Nkhensani Kubayi made it clear after the court ruling that, while there would be no appeal, the government remained fully committed to nuclear expansion, and was planning to initiate a new process without delay.

This signals a realisation by government that an appeal would have little chance of success, and that a lengthy court process would tie up the parties in legal cases for months or even years. This would delay a nuclear build even further.

The minister has made it clear that the government is not giving up on its push for the controversial nuclear plan. But it has realised the process must start from scratch. This is the clearest indication yet that Zuma intends launching the nuclear build before his term of office ends in 2019.

Adding to fears that the government isn’t giving up the fight was the surprise reinstatement of Brian Molefe as CEO of the country’s power utility Eskom. Molefe left the job under a cloud six months ago. His reappointment led to immediate and widespread public outrage. Many have interpreted his return as beefing up the quest for nuclear.

Molefe’s return, however, isn’t as critical to the nuclear project as imagined, as Eskom has maintained his pro-nuclear stance in his absence.

What’s more important is that it’s clear that contestation around the future of South Africa’s energy sector will continue unabated. This despite the president having been severely weakened in recent months, and with it the power of the pro-nuclear lobby supported by his faction.

And here is the original in The Conversation

Nersa may probe whether Eskom’s refusal to sign renewables PPAs contravened licence

Engineering NEws, 11 May, 2017

he electricity subcommittee of the National Energy Regulator of South Africa (Nersa) will recommend that the Energy Regulator institute a formal investigation into a complaint that Eskom was flouting the conditions of its licence by refusing to conclude power purchase agreements (PPAs) for 37 renewable-energyprojects procured by the Department of Energy.

Spokesperson Charles Hlebela said the next meeting of the Energy Regulator would take place on May 25, and confirmed that, at its meeting on May 3, Nersa’s electricity subcommittee had endorsed the probe, following a preliminary investigation. Should it proceed, the subcommittee wants Mbulelo Ncetezo, the regulator member responsible for electricity, to chair the probe.

Here is the full article

Warning issued that nuclear ruling may pose risk to legality of IPP programmes

Engineering News, 11 May, 2017

The recent nuclear ruling, which set aside the Ministerial determinations designed to facilitate the procurement of nuclear power stations, may also carry risks for the legality of the various independent power producer (IPP) procurement programmes, which are proceeding on the basis of determinations that were likewise not subjected to public consultations.

This view is expressed in a risk assessment drafted by Craig Morkel for discussion by the South African Independent Power Producer Procurement Association (SAIPPA). Morkel, who is projects director at iKapa Energy, wrote the piece in his personal capacity.

… “The nuclear ruling made it clear that Nersa cannot simply rubberstamp a determination written by the Minister and is required to, independently, apply its mind before offering its concurrence. It also indicated that such consultations need not be exhaustive,” Morkel said in an interview with Engineering News Online.

He also argued that the judgment provided a genuine opportunity for introspection and review so that future processes were not only fully in line with the Constitution, but also far more transparent and accessible to all stakeholders, not only large industry participants.

“We can’t allow the IPP baby to be thrown out with the nuclear bathwater,” Morkel quipped. …

Here is the full article

Structure of the market needs to be revised to ensure least-cost energy

BusinessDay, Anton Eberhard, 9 May, 2017

The battle for SA’s nuclear and energy future is not over. While many South Africans welcomed the decision by the High Court in Cape Town setting aside international nuclear energy treaties and declaring the government’s nuclear procurement programme unlawful and unconstitutional, President Jacob Zuma and his allies have not given up. Ultimately, the structure of SA’s power market will need to change to ensure an optimal and least-cost energy mix.

Reforming the power sector will be the more important struggle.

Unfortunately, the court’s nuclear decisions were essentially around procedural issues and it declined to rule on substantive matters, such as the rationality of procuring nuclear power when the government’s own updated electricity plan says it is not needed.

Here is the full article

 

A Summary of The Nuclear Deal, Why It Failed and What This Means For South Africa.

Global Carbon Exchange, 5 May, 2017

Everyone should know that, for now anyway, the programme has effectively been sent back to the drawing board (hopefully not that same one that “crafted” the last programme).

Perhaps a bit of history is needed to get to grips with all the failings of the Nuclear Programme.

Here is the full article