The nuclear build
programme will end up costing the South African economy over R3trn in
debt, according to civil society group Organisation Undoing Tax Abuse
(Outa).
The organisation
released a video this week unpacking the economic impact of the deal.
South Africa's current debt level is at R1.89trn and a nuclear deal can
escalate this to above R3trn.
It is estimated
South Africa will have to borrow R1.2trn for the deal. "R1trn will be
enough to build 100 million RDP houses. Two houses for every man, woman
and child in the country," stated the organisation.
The repayments on a
R1.2trn loan come to R100bn a year. This will put a dent in
government's budget to supply basic needs such as education, healthcare,
social welfare and public transport.
The Council for
Scientific and Industrial Research found that nuclear energy is 25% more
expensive than new coal and solar power, and 67% more expensive than
wind.
Energy analyst
Chris Yelland found that new wind, solar power and gas cost R1 per kW
and new coal costs between R1.05 and R1.19 per kW. However, a nuclear
will cost between R1.30 and R1.52 per kW.
Fin24 previously
reported that the 9.6 GW nuclear energy programme is expected to cost
around R650bn over its 10-year lifespan. Earlier this month Energy
Minister Tina Joemat-Pettersson announced that requests for proposals
(RFPs) would be released on September 30 2016.
Eight nuclear
reactors have already been ordered for the nuclear site in Thyspunt, in
the Eastern Cape, according to Outa. Fin24 reported that the country
currently has one nuclear power station at Koeberg, in Cape Town. Three
or four more stations could be built at Koeberg or Jeffrey's Bay in the
Eastern Cape.
Organisations
Southern African Faith Communities' Environment Institute (Safcei),
EarthLife Africa (ELA) Johanesburg and Outa are working together to stop
the deal.
On Thursday, ELA
and Safcei said they are a step closer in their drawn-out court action
to have the nuclear deal set aside with the submission of its replying
affidavit.
"The next step is to set a court date," said Safcei spokesperson Liziwe McDaid.
The two
organisations are engaged in legal proceedings against the Department of
Energy over agreements signed with Russia's nuclear firm Rosatom ahead
of the official procurement process.
On March 30, the
organisations alleged that legal documents in their possession indicate
that South Africa did sign a binding nuclear deal with Russia.
They said "the
Russian agreement was entered into unlawfully, but makes (an)
internationally binding commitment to buy a fleet of nuclear reactors
from Russia".
Source: Fin24
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