Independent Democrats Calls on the Government to Scrap the Pebble Bed Modular Reactor project as a dangerous White Elephant
2004-10-05. The Independent Democrats is deeply concerned that the Pebble Bed Modular Reactor is rapidly becoming another dangerous white elephant. “The allocation of an additional R500 million to the Pebble Bed Modular Reactor Company announced by the government on Tuesday 26 October 2004 for unforeseeable and unavoidable extra expenses is yet another indication that this project is proving to be an expensive white elephant for the country,” stated Lance Greyling environmental spokesperson for the Independent Democrats.
“Over R1 billion has already been spent on this project and it is
estimated that a further R10 billion will be needed before a
demonstration reactor is actually built. These reactors will only
generate 110 megawatts of energy, which makes it extremely
uncompetitive in economic terms with all other forms of energy
including that of wind power,” stated Greyling.
“It is also a recognized trend in the nuclear industry to initially understate its costs to convince investors and governments to invest substantial financial resources. These costs then escalate through the life-cycle of the project. An independent review of the economic feasibility study of the project was commissioned by the government in the late 1990s and it found the economic case to be tenuous at best. It also stated that the project was overly dependent on the assumption that there would be international interest in these reactors. The failure of the PBMR Company to secure a foreign equity investment partner simply proves the suspect nature of this assumption.”
The Independent Democrats would therefore call on the government and Eskom to redirect these Research and Development resources into positioning South Africa as a leading producer of renewable energy components.
“South Africa is perfectly positioned to become the global leader in the development of renewable energy technology. As hosts of the World Summit on Sustainable Development, it is also a fitting role for South Africa to be playing in the world.” At a recent briefing to the parliamentary committee on environmental affairs and tourism an official from the Department of Minerals and Energy admitted that nuclear energy is currently receiving an inappropriate amount of funding to the detriment of research into other energy sources. The Independent Democrats also question the positioning of South Africa as a nuclear exporting country, given that nuclear proliferation is currently identified as one of the most serious global security threats.
“It is also a recognized trend in the nuclear industry to initially understate its costs to convince investors and governments to invest substantial financial resources. These costs then escalate through the life-cycle of the project. An independent review of the economic feasibility study of the project was commissioned by the government in the late 1990s and it found the economic case to be tenuous at best. It also stated that the project was overly dependent on the assumption that there would be international interest in these reactors. The failure of the PBMR Company to secure a foreign equity investment partner simply proves the suspect nature of this assumption.”
The Independent Democrats would therefore call on the government and Eskom to redirect these Research and Development resources into positioning South Africa as a leading producer of renewable energy components.
“South Africa is perfectly positioned to become the global leader in the development of renewable energy technology. As hosts of the World Summit on Sustainable Development, it is also a fitting role for South Africa to be playing in the world.” At a recent briefing to the parliamentary committee on environmental affairs and tourism an official from the Department of Minerals and Energy admitted that nuclear energy is currently receiving an inappropriate amount of funding to the detriment of research into other energy sources. The Independent Democrats also question the positioning of South Africa as a nuclear exporting country, given that nuclear proliferation is currently identified as one of the most serious global security threats.
