Power and Industry
The mandate of Power and Industry (P&I) is to bolster Necsa’s corporate business through two primary avenues:
- Organic growth involves marketing and selling both existing and new products and services to both existing and new customers, with a focus on Necsa’s nuclear capabilities and the local and international Nuclear Industry as key customers.
- Structural growth entails pursuing new initiatives or engaging in acquisitions, mergers, or takeovers of existing companies within the Power Sector, positioning Necsa to actively participate in the local Energy Market
The objective of organic growth primarily falls within the Industry Segment, while the pursuit of structural growth is mainly championed by the Power Segment within Power and Industry.
The operational plan for FY 2023/24 for P&I was formulated and approved in July 2023. This plan also served as a basis for developing divisional performance compacts and individual compacts for the same fiscal year. Currently, P&I, is in the process of crafting a business model that aligns with Necsa’s future objectives and interests.
Over the previous year, Power and Industry significantly contributed to achieving the following milestones in expanding Necsa's business both domestically and internationally:
- International Collaboration
NECSA obtained approval from DMRE to sign an MoU with TVEL, a Russian company within the Rosatom Group, regarding potential cooperation on nuclear fuel and components supply for Koeberg Plant, with the MoU being virtually signed on July 5, 2023. Additionally, Necsa provided a UF6 Transport Test Cylinder to Tenex for testing in Russia, aiming to qualify as a future supplier pending further tests. Necsa, in partnership with Eskom and Dti, secured an order from Holtec, a US company, for eleven Dry Storage Casks to store spent nuclear fuel at Eskom Koeberg Nuclear Power Station's interim storage facility.
PBMR Company Transfer
The transfer of the PBMR Company from Eskom to Necsa is progressing slowly, with funding requirements being a key issue until the asset generates its own income. Regular joint coordination meetings between Necsa, DMRE, and Eskom were held, and both DMRE and DPE have acknowledged receipt of the Section 54 Pre-notification application. Necsa has conducted its own internal due diligence study using historic documents provided by Eskom. Funding for the external review of the due diligence has been budgeted for the new financial year, with progress tracked according to a project schedule. The DMRE has established a PBMR Transfer Committee to align activities among involved parties. Necsa has updated the PBMR Sales Agreement and conducted a business assessment study documented in the PBMR Business Case report.
- Small Modular Reactor (SMR)
Power and Industry undertook the task of developing an SMR Strategy for Necsa, which encompassed defining SMRs, industry perspectives on SMR technology developments, strategic options for Necsa, and the preferred strategy. The strategy was presented at the Necsa Board Workshop on March 25, 2024, focusing specifically on Small Modular Reactors.
Stakeholder engagements, including with Eskom, commenced with the initial meeting held on February 1, 2024, and a follow-up meetings scheduled for later in year. These meetings aim to align Necsa and Eskom regarding the planned deployment and initiation of the SMR demonstration plant, along with associated technical and commercial activities.
