Localisation strategy for the South African nuclear power programme

Abstract

Through this study, a strategy for the localisation and development of the South African nuclear industry was developed. As background, the Korean localisation experience was investigated, along with international recommendations regarding nuclear localisation, and South African governmental policies. This research was used as foundation for the formulation of a localisation strategy. The possibility of using localisation and nuclear industry development as a means to address governmental socio-economic development goals was investigated. From the literature investigation localisation principles were identified. The focus areas of the localisation strategy were subsequently based on these principles. The principles are:  Aggressive human resource development  Governmental leadership and support  International co-operation The localisation strategy addresses general localisation recommendations, needed human resource development, structure of the Nuclear Energy Project Implementation Organization (NEPIO), roles of the participants of the NEPIO, and finally the supply-chain development and technology transfer guidelines. It was assumed that three nuclear power plants, consisting of two reactors each would be constructed. For localisation to be successful, a fleet approach must be followed to ensure economy of scale, and local participation must be incrementally increased with each power plant. The localisation strategy was circulated to industry for validation, and changes were made, based on industry feedback. The needed human resource development amounts to the training of 4 012 labourers per year (see Table 1). The local participation for each consecutive power plant is 30%, 50%-55% and 75%-80%, respectively. It was found that 100% localisation is not feasible. The planned nuclear power programme is too small to justify the development of globally leading components such as ultra-heavy forgings. The structure of the NEPIO is shown in Figure 1. It was found that the localisation and nuclear industry development would serve as a vehicle to help achieve governmental socio-economic development programmes. It was finally concluded that South Africa has the potential for localisation, but obstacles such as a lack of governmental commitment, negative public perception, and lack of industry confidence will be detrimental to the localisation efforts. If these, and other obstacles are not urgently addressed, South Africa will miss out on a much needed development opportunity.