Investment group suggests nuclear could form part of country’s future energy mix

South African specialist investment company Futuregrowth Asset Management has expressed the view that nuclear power “should not be dismissed outright” as a long-term contributor to the country’s electricity generation system. Futuregrowth currently manages assets worth some R193-billion, or about $12-billion (these being the values on December 31 last year). In an ‘Insight’ note published on Thursday, Investment Analyst Bongile James and Portfolio Manager Paul Semple acknowledged concerns in South Africa regarding the construction of new nuclear power plants (NPPs) in the country. “Nuclear power as a long-term solution to our energy woes is a sensitive topic, partly due to the ramifications for our country of the substandard design and poor build quality of [the new and coal-fired] Medupi and Kusile, the last mega-power plants constructed in SA investmentSouth Africa,” they noted. “There are also concerns about Eskom’s ability to procure, build an operate a new nuclear power project.”