Nuclear deal not the best option for SA's electricity woes: Economist
The much-debated nuclear power deal, which government hopes will put an end to South Africa's electricity shortages, might not be the best option, considering the country's economic woes.
According to KPMG Chief Economist, Lullu Krugel, the country cannot afford the 96 Gigawatt nuclear build which government has planned.
She hopes Finance Minister Pravin Gordhan will elaborate on government's plans regarding this project during Wednesday's midterm budget speech.
Krugel says she doesn't believe the trade-off for stable, improved power supply is worth the estimated R1-trillion to R3-trillion of the nuclear build.
She adds the country would be better off leveraging our geographically fortunate location in terms of solar and other renewable sources.
"Given that we have sufficient coal resources, and there's a massive scope on the renewable energy side, I really don't think this should be our first option. If we were in a position where we really couldn't explore anything else, then maybe yes. But given where we are economically and given the fact that we actually have some other alternatives to consider, I don't think that this is the best option," Krugel adds.