Nuclear powerships offer clean baseload electricity at predictable prices – Rosatom

Floating nuclear reactors can provide countries with a supply shortage like South Africa with baseload electricity at a stable price without the construction risk – but the regulatory environment is complex and underdeveloped.

This is clear from a presentation by Russian state nuclear company Rosatom at a recent National Press Club event.

Ryan Collier, CEO of Rosatom Central and Southern Africa, emphasised the need for baseload electricity to supplement intermittent renewables.

He said with 50% of Eskom’s coal-powered power stations due for decommissioning by 2030 and 75-80% by 2050, the country needs to embark on a massive roll-out of gas generation in the medium term to balance the increased share of wind and solar power in the electricity mix. Open-cycle gas turbines must also be converted to use gas instead of diesel.

In the longer term, nuclear will however be the best technology for reliable baseload electricity at an affordable price, he said. Nuclear power stations have proven that they can be run at a high availability factor, and nuclear is considered clean energy.

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Three floating nuclear power plants

While he believes South Africa needs more “big machines” like the 1 800MW Koeberg nuclear plant near Cape Town, Russia’s land-based and floating small modular reactors (SMRs) can be well-suited for municipalities and large private electricity users, he says.

Rosatom’s 70MW Akademik Lomonosov is the only floating SMR currently in use globally. It has been providing electricity to the Russian arctic port town of Pevek since 2020.

The company is working to have three more floating nuclear power plants ready for the market in the next few years.

As is the case with the gas-fired Turkish Karpowership barges, Rosatom will build the reactors at home and only sell the electricity to the client in terms of a power purchase agreement.

The big difference according to Collier, is that the risk of rising gas prices in the Karpowership offering lies with the end-user as a pass-through in the tariff. That is not the case with the Rosatom offering and the price to the end-user will therefore be much more predictable.

As with Karpowership, the land-based infrastructure will be the responsibility of the client.

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International waters

Since floating SMRs will require transport in international waters, a whole new set of regulatory issues, including marine environmental risks will however have to be considered before export can take place.

In September the global nuclear industry will get together under the guidance of the International Nuclear Agency to deliberate on these issues.

Land-based SMRs must be licensed by the country they will operate in, and in this regard South Africa has an advantage due to its well-developed nuclear industry and established nuclear regulator.

While nuclear deals are currently done between countries and no private vendor is allowed to buy nuclear technology, this may change in future, depending on the position of the local nuclear regulator.

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Practical for SA?

For Rosatom to deliver a land-based SMR, it can take seven years from the day the deal is signed, including licensing, feasibility studies and construction, according to Collier.

A 110MW (two x 55MW) plant needs a footprint of only 0.06km2 and more units can be added later.

They don’t need huge amounts of water and can be placed on the same sites as Eskom’s decommissioned coal-fired power stations to utilise the existing grid connections.

Collier said it is a myth that nuclear technology, even in its conventional form, is unaffordable. The upfront cost is high, but the fuel cost is only 5% of the cost over the lifetime of the plant. That means electricity tariffs can be stable and highly predictable.

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Growth of nuclear energy

“Developed countries now understand the limitations of renewable energy and are restarting their nuclear power plants,” he says.

Rosatom is currently contracted to deliver 34 nuclear power plants in different countries, he adds. In the last 15 years it commissioned 17 units.

Collier says there are different funding models, including a grace period before payment commences.

He adds that Rosatom also has thermal capability and is ready and willing to assist Eskom with the repair of its coal fleet and mitigate against the environmental impact of emissions.

This article originally appeared on Moneyweb and was republished with permission.
Read the original article here.

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