Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Ending the coal addiction

Dec 08 2011 07:31 Reuters

Related Articles

Gigaba: Cash injection for Richard's Bay

SA misses coal boom

SA coal exports surge

Banks slated for funding coal plants

Eskom unveils pilot solar plant

Glencore takes stake in SA coal firm

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

 
Share Share line Print

Durban - South Africa, the host of UN global climate talks, is faced with a conundrum - it wants to wean itself off coal-powered plants seen as prime culprits of greenhouse gas emissions and find a cleaner energy source.

It is turning to nuclear power, despite the catastrophic environmental degradation the world witnessed after Japan's Fukushima plant disaster this year.

The global climate talks that opened earlier this week in Durban are seeing a widening division on nuclear power, with many advanced economies moving away from it after Fukushima and emerging states heavily reliant on fossil fuels embracing it as a cleaner way to power their development.

"If you want to be part of the climate change race and mitigation you basically have renewables and nuclear. Renewables are intermittent and you need a firm and reliable baseload technology.

"Renewables are not in a position to provide this yet," said H Holger Rogner, section head of the International Atomic Energy Agency's (IAEA's) planning and economic studies section.

South Africa, among the world's top 20 emitters per capita of carbon dioxide, and many other emerging countries see nuclear power as a way to ensure energy security for the coming years and as a bridge to a time when they are rich enough to afford adding more renewables to their power mix.

The Fukushima disaster changed the economics of the nuclear industry by drying up markets in developed countries such as Japan and increasing competition among the few global conglomerates who can build nuclear power plants.

"It has become close to a buyers' market and not a sellers' market, which it was before Fukushima," said Rogner.

On paper nuclear power is an ideal energy source, producing next to no greenhouse gas emissions while churning out stable supplies of electricity. But, as Fukushima and Chernobyl have shown, an accident can quickly turn vast areas into nuclear wastelands, raises risks of radiation poisoning and leaves a massive bill for clean up.

The electric mix

China, the world's biggest greenhouse gas emitter due to its heavy reliance on coal, is looking to scale down its nuclear plant ambitions due to Fukushima but could still bring dozens of reactors on line in the next decade.

Chinese officials have suggested no new "second-generation" reactors - seen as more risky than newer versions on the global market - will be approved, leaving the way clear for third-generation models designed by France's Areva and US-based Westinghouse, owned by Toshiba.

The head of fast-growing India's atomic energy commission, Srikumar Banerjee, told the IAEA's annual member state gathering in September of the emerging powerhouse's plans for a "major expansion" of nuclear capacity.

The IAEA says it still sees "significant" growth ahead - forecasting at least 90 new reactors by 2030 to add to the world's existing 432 - even though Fukushima has prompted it to cut its forecast.

The increasing number of plants has worried many environmental groups who said Fukushima served as a powerful reminder that not even the most technologically advanced states can properly manage nuclear power - let alone safely manage the growing amounts of highly radioactive waste they produce.

South Africa has enough coal to power the country for decades, Energy Minister Dipuo Peters told reporters on Thursday at the UN climate conference, but wants to see it become a smaller part of the energy mix.

It now relies on coal to generate about 90% of its electricity but plans to spend scores of billions of dollars for nuclear power to reduce that number.

Ferrial Adam, a climate and energy campaigner at Greenpeace Africa, said money would be better spent on smaller-scale projects aimed at bringing electricity to the 20% of the country without power, instead of expanding a grid where a bulk of the power goes to a few electricity-hungry industries.

She is also worried the country may go for a dangerous option, keeping coal, building nuclear plants and not making a serious commitment to renewables.

"The South African government is so convinced that renewable won't be able to deal with this growing economy they are talking about," she said. 

 
 
Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
Facebook's intrinsic value
May 23 2012 11:32

When it comes to judging a company’s worth, value investors like Warren Buffett look at intrinsic value. By that measure, Facebook’s shares are worth less than $10. A Reuters analyst breaks down the math. (Reuters)

Perfin

I arranged two workshops in Cape Town at the Cape Chamber of Commerce offices as well as two computer based workshops, one on Google Adwords and another on Joomla Administrator at the training centre in Somerset West. Emarketing Workshops - http://emarketingworkshops.co.za/next-workshops 1. Interne... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...