$50bn Nuclear Energy Deal Marks Russia’s First Foray Into Africa

 Busayo Energy, Strategies & Solutions

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VENTURES AFRICA – Africa’s second largest but most developed economy, South Africa has signed a $50 billion deal with Russia’s atomic energy agency for the development and deployment of eight nuclear power units, which are expected to go live in 2023.
Each reactor costs about $5 billion, meaning the deal could reach about $40 billion to $50 billion. Experts have gone further to suggest that the deal could rise to as much as $100 billion.
The partnership was signed on the sidelines of the International Atomic Energy Agency (IAEA) conference and will see the birth of the first Russian-based technology nuclear power plant in Africa.
“The Agreement lays the foundation for the large-scale nuclear power plant (NPP) procurement and development program of
South Africa based on the construction in RSA of new nuclear power plants with Russian VVER reactors with total installed capacity of up to 9,6 GW (up to 8 NPP units),” a statement on the Russian Federation national nuclear corporation (Rosatom) reads.
Although South Africa currently has only one nuclear power plant – the 1,800MW Koeberg nuclear power plant – the country hopes to launch additional power plants that will enable it produce 9.6 GigaWatts (GW) of new nuclear capacities via modern and safe technologies by the year 2030.
The use of nuclear energy will help to drive economic growth, South Africa’s Energy Minister Tina Joemat-Pettersson said.
Russia is particularly keen on ensuring its first energy deal proves successful after saying it is ready to provide a low-interest loan for the project as well as train specialists from Africa at Russian universities. The skills gained could create thousands of job opportunities and contracts for South Africans valued at about $10 million.