South Africa's Energy Policy

Energy must be traded in a free market. How the nuclear lobby has
undermined South Africas energy policy.

The to-and-fro on the letter pages of the Cape Times by the proponents of nuclear energy in South Africa has illustrated two issues - their inflexibility and obstructionism.

Now that we officially have an energy crisis, it may be useful for
promoters of nuclear energy to examine their role in the dilemma that
faces us all.

This vociferous band has claimed centre stage by promoting their
projects above all others. The poster child PBMR remains a distant
dream despite the fact that there were supposed to be three of the
damned things operating by now. Clearly a lot of faith was placed in
this experimental, unproven, yet ephemeral and illusory 'solution'
lobbied by people in powerful positions.

Our Minister of Nuclear Promotion, Erwin, who fairly recently
unilaterally informed the public that we are expanding our nuclear
capacity, has long been a captive audience to these technophiles with
no solutions except blackouts.

Why? Primarily because of the virtual monopoly of Eskom on both the
power policy and generation capacity. What Eskom says, goes and it
too, is seriously entranced by the nuclear babbling. Eskom assumes
completely unrealistic power prices that totally externalise the true
cost of, for instance, coal generation where the astronomical
environmental and human health costs are excluded.

And just try to sell power to Eskom. They will offer you the same
ludicrously underpriced externalised rate. Boast all you like that our
power is the cheapest in the world - it is filthy and unreliable. Even
Koeberg, bolts and all.

In a true free market, power could be freely sold at the price people
are prepared to pay. Given the astronomical price of power produced by
small liquid fuel generators, prices appear to be flexible to demand.
I have heard of a wealthy homeowner installing a half-million Rand
generator. Renewables can beat these hands down.

Many individuals and companies would happily produce electricity if
they could sell their excess. Anyone wanting to invest in experimental
solar, wave, wind or biomass power generation projects is severely
constrained from doing so by Eskoms whip hand.

South Africa is lagging in carbon neutral, sustainable generation
capacity. Each and every such project should receive tax breaks,
offset against the global carbon-trading scheme. Legislation must be
passed (not discussed endlessly) to force Eskom to accept power into
their grid at open market prices, set on a free exchange basis,
possibly providing a small offset for 'rent' of transmission
infrastructure.

South Africa's energy capacity backlog would soon diminish if this were done.

The alternative is to remain entranced by the nuclear fringe and their
whingers in chief, Irwin, Kenny, Plimmer, et al, while watching
bugger-all happen for the next decade. If we allow them to maintain
the ascendant they will simply stall us further.

Article on South Africa's Nuclear Energy Policy written 25 January 2008

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