South Africa’s state-owned electricity company, Eskom, is in early talks with the World Bank over funding for a proposed 5.2GW (5,200MW) nuclear power expansion aimed at strengthening the country’s long-term electricity supply and reducing its dependence on coal-fired generation.
The proposed expansion, which could become one of South Africa’s largest energy infrastructure projects in decades, would include 4.8GW from conventional nuclear reactors and an additional 400MW from small modular reactors (SMRs). Eskom said at least half of the SMR capacity would support its coal-to-nuclear transition strategy.
The development was disclosed by Bheki Nxumalo, Eskom’s Group Executive for Generation, during the sidelines of an energy conference in Cape Town.
“We are in exploratory discussions with most of the potential funders … over different ways of funding this,” Nxumalo said.
He added that the cash-strapped utility is unable to finance the project independently and is therefore seeking support from institutions including commercial banks, the African Development Bank, and the World Bank.
“As a matter of policy, we do not comment on potential or exploratory discussions with member countries or utilities,” a World Bank spokesperson said, although the institution had signalled last year that it was open to supporting countries that choose nuclear energy as part of their electricity mix.
According to Nxumalo, Eskom, which accounts for 90 percent of South Africa’s electricity and generates more or less 30 percent of the electricity used in Africa, intends to approach the market for both conventional nuclear technologies and SMRs within the next 12 months.
Funding structures under consideration include public-private partnerships and vendor financing models similar to the arrangement being used by Russia’s Rosatom for Egypt’s El Dabaa nuclear project.
South Africa’s electricity sector
South Africa remains the continent’s most industrialised economy, but its electricity sector has struggled for years with ageing infrastructure, supply shortages, and heavy dependence on coal-fired generation.
- Although there is no recent official figure for nationwide electricity access, the most recent World Bank data from 2023 showed that about 89.8 percent of South African households were connected to the national electricity grid. However, more than 776,000 households still lacked access to mains electricity.
- The country’s power system is dominated by coal. According to Eskom’s August 2024 power generation fact sheet, South Africa operates 15 active coal-fired power stations with a combined generation capacity of about 45,310MW. This means coal contributes more than 85 percent of the country’s over 53,000MW electricity generation capacity.
Gas-fired stations contribute about 2,426MW through four quick-reaction turbine plants, while nuclear energy currently contributes 1,934MW from the Koeberg Nuclear Power Station — the only operational nuclear facility in Africa.
Now, South Africa is seeking to significantly expand that nuclear capacity by adding another 5,200MW in an effort to secure more stable baseload electricity supply as it gradually transitions away from coal.
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Nuclear energy gains momentum globally
Globally, countries are increasingly turning to nuclear power as concerns over climate change and fossil fuel emissions continue to reshape energy policies. Nuclear energy is widely viewed as a low-carbon source capable of providing large-scale, steady electricity generation.
The International Atomic Energy Agency projects that global nuclear power capacity could potentially double by 2050, reaching between 561 GW(e) (low estimate) and 992 GW(e) (high estimate), reflecting growing interest in nuclear energy as part of the global clean energy transition.
- The United States remains the world’s largest producer of nuclear energy, operating 94 reactors that generated nearly 782 terawatt-hours of electricity in 2024. Meanwhile, China is rapidly expanding its nuclear sector, with 57 operational reactors and dozens more under construction as it seeks to meet rising electricity demand while cutting emissions.
- In Europe, nuclear power continues to play a major role in electricity generation. France leads globally in nuclear dependence, generating more than two-thirds of its electricity from nuclear reactors. Countries including Slovakia, Hungary, and Finland also rely heavily on nuclear energy for their national power supply.
In Africa, South Africa remains the continent’s only operational nuclear power producer, with its two Koeberg reactors supplying roughly 3.9 percent of national electricity generation. However, Egypt is currently constructing four nuclear reactors at its El Dabaa Nuclear Power Plant with a combined capacity of 4.4GW, marking a major step toward diversifying its energy mix and building domestic nuclear expertise.
While South Africa is still likely to remain heavily dependent on coal for years due to the scale of its existing infrastructure, a successful nuclear expansion could provide several long-term advantages for the country.
Beyond reducing carbon emissions, expanded nuclear generation could help stabilise electricity supply, reduce the frequency of power shortages, strengthen industrial productivity, and support South Africa’s broader energy transition goals. Nuclear plants also provide consistent baseload electricity, unlike some renewable sources that depend on weather conditions, making them attractive for economies seeking reliable round-the-clock power generation.
