Koeberg's long-term operation to cost R21bn - but it's a good investment, says Eskom

Eskom's nuclear power station Koeberg officially marked 40 years of operation on Sunday, 21 July. The programme to extend its operating life for another 20 years is set to cost R21 billion, group executive for generation Bheki Nxumalo said, but he reckons it is money well spent given the benefits of continued power supply for South Africa.

Nxumalo and other executives on Monday briefed the media at Koeberg, near Melkbosstrand on the West Coast.

Last week, the National Nuclear Regular (NNR) granted Eskom a licence to continue operating Unit 1 for 20 years. This after the power utility met a number of requirements.

Koeberg has two units, which generate 920 megawatts (MW) each, and contributes 5% of all power generated by Eskom.

Unit 2's licence is valid until 9 November 2025, and the NNR will announce its decision on its long-term operation before it expires next year.

Huge investment

Currently, Eskom is finalising the steam generator replacement programme at Unit 2. Nxumalo expressed confidence that the unit would return to service by the end of October. Eskom has previously said it would take lessons from Unit 1's steam generator replacement programme, which had been hit by delays.

On the costs involved, Nxumalo said it was a huge investment, but a good one. "For the benefit of the country, it's been a good investment," he said.

Given that nuclear is a low-carbon energy source, Eskom is also looking into issuing carbon credits, explained Koeberg general manager Velaphi Ntuli.

A carbon credit system would allow Eskom to raise income by selling a credit, based on one tonne of carbon that is avoided or removed from the atmosphere.

Conditions for Koeberg 2.0

Among the conditions is for Eskom to monitor equipment and replace components as they age. The South African energy company's intention is to run the plant for as long as it is economically viable.

Asked about why Eskom only applied for a 20-year licence, and not longer, chief nuclear officer Keith Featherstone said that as plants get older, it is not always easy to develop longer-term forecasts and analyses on how the plant design can withstand certain events, like reactor trips.

For this reason, the company is working with a shorter period, like 20 years, as it is far easier to justify the plant's continued operation than for a longer period.

Eskom noted that it is possible that there could be a legal challenge to the licence being granted, but that this would be directed to the NNR.

Nxumalo said Eskom would be ready to support the NNR with what it needed if a challenge should arise.

As for future skills to continue running Koeberg for longer, Ntuli noted that Eskom has been working on developing skills locally. "We did lose some colleagues, highly competent colleagues we trained, to the United Arab Emirates," Ntuli said.

But bearing that in mind, Eskom had to ensure that it has a pipeline of talent - given upcoming retirement for some employees and future needs. He explained there is a 20-year workforce plan in place to ensure continued training, to raise new leaders and develop skills.

Technical capability

Electricity and energy minister Kgosientsho Ramokgopa said the granting of the licence augers well for government's plan to continue to have nuclear as part of the country's energy mix - specifically new nuclear build programmes.

"Koeberg is an illustration of the technical capability of South Africans from an engineering point of view, in relation to nuclear. It is a living testimony of what can be achieved."

So far, two sites have been identified for a utility-scale nuclear plant, like Koeberg - either in Duynefontein in the Western Cape or Thyspunt in the Eastern Cape. Eskom has received environmental authorisation for a nuclear plant in Duynefontein. A decision for the Thyspunt site has not yet been finalised, Nxumalo said.

Out of the 2 500MW allocated to nuclear, in terms of the integrated resources plan, 2 400MW is for a utility-scale plant, while 100MW would be for a small reactor, he said.

Nxumalo previously said Eskom is looking into installing small nuclear reactors at old coal power stations, which already have grid access.

Staving off load shedding

Eskom is slowly approaching 120 days without load shedding, and chairperson Mteto Nyati attributed this to the success of its generation recovery plan.

Outages last year around this time were between 17 000MW to 18 000MW. They are currently at around 12 000MW. Occasionally unplanned outages have dipped below 10 000MW. The board wants this to become a more consistent occurrence, he said.

Eskom has also reached a point where capacity far exceeds demand. Last week, the available capacity was 33 000MW, with demand at 29 000MW. This is a feat, especially in winter - and considering that demand is being met without needing to run peaking plants such as open-cycle gas turbines, he remarked.

"It talks to the health of the generation business," Nyati said.