South africa’s Nuclear Renaissance: Pioneering a Future of Energy Independence

South Africa,home to Koeberg Power Station—Africa’s only operational nuclear power plant—is on the verge of a nuclear energy revolution. Facing persistent energy challenges, the nation is aggressively pursuing the progress and deployment of small modular reactors (SMRs), aiming for global leadership in this burgeoning sector. This aspiring undertaking involves a renewed focus on the Pebble Bed Modular Reactor (PBMR), a project shelved in 2010, now being revived by the South African Nuclear Energy Corporation (Necsa).

Necsa is taking the reins from Eskom, the national electricity provider, to revitalize the PBMR project. While China and Russia lead in operational SMR prototypes,Necsa is exploring nearly 80 competing designs for small and micro nuclear generators with capacities ranging from 20 to 300 megawatts,resolute to ensure South Africa remains competitive.

These SMRs offer a unique advantage for South Africa’s diverse energy landscape.these are ideal for SA because they can operate outside Eskom’s grid,servicing small areas such as farms,industrial parks or data centres, according to Necsa’s strategic plan. Necsa and Eskom are also investigating repurposing aging coal power stations as potential SMR sites, leveraging existing infrastructure and transmission grids.

Necsa’s ambitions extend beyond smrs. the Safari reactor,once used for uranium enrichment in the now-dismantled South African atomic bomb program of the 1990s,has established Necsa as a global leader in medical isotope production,crucial for cancer treatment. However, with the Safari reactor nearing the end of its lifespan (scheduled for 2030, but possibly extended), Necsa is planning a replacement—a multi-purpose reactor capable of generating energy, heat, and isotopes. This project, along with other initiatives, will require approximately R50 billion in capital expenditure, according to Necsa CEO Loyiso Tyabashe.

the economic rationale for this nuclear expansion is compelling. Tyabashe, speaking at a recent media presentation, highlighted the unsustainable costs of relying on open-cycle gas turbines (OCGTs) to maintain grid stability. Last year, primary energy costs feeding these open-cycle gas turbines (OCGTs) increased 11% while production declined by 2%. That’s an unsustainable model, though eskom expects to use these turbines less in 2025. Nuclear energy, at R1.13/MW,offers a considerably lower cost compared to coal (R5.51/MW),Eskom-owned OCGTs (R65.79/MW), and renewables (around R20/MW), making a strong commercial case for its expansion, while also addressing decarbonization goals.

South Africa’s renewed focus on nuclear energy is part of a broader African trend. Egypt is collaborating with Rosatom on a 4,000-megawatt power plant, and Ghana issued a tender in 2024 for its own nuclear power plant. Other African nations, including Burkina faso, Mali, Burundi, Ethiopia, and Zimbabwe, are also exploring nuclear power options with Russian assistance. Koeberg currently meets about 5% of South Africa’s energy needs and supplies roughly half of the Western Cape’s grid.

While south Africa deliberated on its nuclear energy strategy,other countries,some with less experience,actively sought South African expertise.The Czech Republic, Iran, Mexico, and Romania, along with newer entrants like the UAE and Belarus, have all benefited from South African nuclear professionals. As an example, approximately 150 South African professionals contributed to the construction of the first functioning unit of the UAE’s Barakah Nuclear Power Plant, and many others have joined companies like X-energy in the US.

Necsa’s financial turnaround further strengthens its position. The state-owned company reported revenue of R2.7 billion in the last financial year (about half in foreign currency) and profits of close to R150 million in each of the last two years, a notable enhancement from previous losses. This success,attributed to a “return to basics” revamp,is reflected in improved operational results and a transition from disclaimers to unqualified audits from the Auditor General.

Adding to the momentum, Stratek Global, led by former Necsa chair Kelvin Kemm, announced a strategic partnership with Groupe Albatros of france to promote the development and deployment of South African-developed SMRs across Africa and the Middle East. Kemm emphasized the unique advantages of Stratek’s HTMR-100 reactor: The Stratek Global consortium has spent decades developing an extremely advanced nuclear reactor which crucially does not need a large body of water to operate. Currently, worldwide, a limitation of most nuclear power plants is that they need to use the ocean for cooling or a very large lake. We can put our HTMR-100 reactor absolutely anywhere, water or no water. An additional advantage of these small reactors is that up to 10 can be placed on one site.Yet another advantage is that reactors can be added at any time, as the demand dictates, or the finances allow.

South Africa’s renewed commitment to nuclear energy signals a potential shift toward energy independence and a significant role in shaping the future of clean energy in Africa and beyond.

South Africa’s Nuclear Ambitions: An Expert Outlook

To gain deeper insights into south Africa’s nuclear renaissance, we spoke with Dr. Zanele Mthembu, an expert in renewable energy and African energy markets.

Q&A with Dr. Zanele Mthembu

Editor: Dr. mthembu, what makes South Africa’s approach to nuclear energy, particularly with SMRs, so pivotal for the future?

Dr. Zanele Mthembu: South Africa’s approach is truly game-changing, primarily because of its unique strategy to blend innovation with existing infrastructure. SMRs offer versatility and decentralized energy solutions, making them ideal for diverse applications such as industrial parks and remote areas.Unlike conventional large-scale plants, which require significant water resources, SMRs like the HTMR-100 can be sited in locations with water scarcity. This adaptability extends to financial and environmental metrics as well. With nuclear energy costs substantially lower at R1.13/MW compared to R65.79/MW for open-cycle gas turbines and even R20/MW for renewables, SMRs present a compelling financial case. Furthermore, they align with decarbonization goals, offering a cleaner choice to coal-dependent grids. By focusing on SMR advancement, South Africa not only addresses its challenges but also sets a precedent for other African countries exploring nuclear options, such as Egypt and Ghana.

Editor: How does South Africa’s renewed nuclear focus fit within the larger context of African energy trends, and what role might it play in shaping the continent’s energy future?

Dr. Zanele Mthembu: Africa is experiencing a significant energy transition, with several countries recognizing nuclear power’s potential as part of their energy portfolios. South Africa’s leadership in nuclear technology, especially with SMRs, could serve as a beacon for other nations. Countries like Egypt, collaborating with Rosatom for a 4,000-megawatt plant, and Ghana, which issued a tender in 2024 for a nuclear plant, are pursuing similar paths. South Africa’s expertise,honed through historical projects like Koeberg and its contributions to the UAE’s Barakah Nuclear Power plant,is invaluable. This seasoned experience positions it not only as a market leader but also as a mentor for nations embarking on their nuclear journeys, such as Nigeria and Ethiopia. By demonstrating successful deployment and operation of SMRs, South Africa can set a blueprint, fostering a collaborative habitat that accelerates nuclear adoption across the continent.

Editor: Beyond SMRs, what are the future prospects and challenges for South Africa’s nuclear energy strategy, particularly concerning the Safari reactor and other upcoming projects?

Dr.Zanele mthembu: The Safari reactor, once integral to uranium enrichment, now leads in medical isotope production—a critical component in cancer treatment. However, with its lifespan nearing an end, planning for a multi-purpose reactor capable of generating energy, heat, and isotopes is underway. The anticipated capital expenditure of approximately R50 billion highlights the ambitious scale of this project. Yet, this investment promises to fortify South Africa’s dual capacities in energy production and medical isotope supply, maintaining its global leadership in this field. Challenges lie in securing investments, managing technological developments, and integrating these advancements with existing infrastructure. However, if navigated successfully, these ventures will solidify South Africa’s stature as a key player in nuclear technology and healthcare.

Editor: Financial sustainability is key to any large-scale energy project. How has Necsa fared in this regard, and what does its financial turnaround signify for South Africa’s nuclear ambitions?

Dr. Zanele Mthembu: Necsa’s financial turnaround is a testament to strategic foresight and operational efficiency. Reporting a revenue of R2.7 billion last financial year—about half in foreign currency—and profits nearing R150 million highlights a robust recovery from previous losses. This turnaround, attributed to streamlined operations and strategic initiatives, demonstrates Necsa’s sustainable growth and investment readiness.such financial health is critical for funding expansive projects, enticing both domestic and international investors. Moreover, this fiscal stability reinforces South Africa’s credibility in the global nuclear market, showcasing it as a viable partner for nuclear development and collaboration.

Editor: How do you foresee South Africa’s nuclear energy strategy impacting global trends in nuclear technology,especially with the participation of international collaborations like the partnership between Stratek Global and Groupe Albatros?

Dr. zanele Mthembu: South Africa’s refined approach to nuclear technology is indeed making waves globally. Partnerships like Stratek Global’s with Groupe Albatros highlight the international interest in the HTMR-100 reactor, which boasts versatility without the need for large water bodies. such collaborations not only enhance technology transfer but also open avenues for South Africa to influence global nuclear standards and practices. As it leads in developing advanced nuclear reactors, South Africa can shape international policies, ensuring safer, more efficient nuclear energy solutions worldwide. The ripple effect of these partnerships extends beyond Africa and the Middle East, fostering cross-border technological innovation and economic growth.South Africa’s proactive stance could well accelerate the global shift toward cleaner, more sustainable energy solutions.

Editor: Dr. Mthembu, thank you for sharing your profound insights on South Africa’s bold nuclear renaissance. Woudl you care to leave our readers with a final takeaway on South Africa’s journey towards energy independence?

Dr. Zanele Mthembu: As South Africa embarks on this transformative journey, its pivotal role in nuclear energy is redefining energy paradigms both locally and continentally. The nation is not just responding to its energy challenges creatively but leading a legacy of innovation in the energy sector. The promise of nuclear technology extends beyond energy independence; it’s about sustainable development, economic resilience, and global leadership in clean energy. South Africa’s nuclear strategy is poised to inspire and reshape energy frameworks globally, marking a new dawn for Africa and beyond.