KEY POINTS
- Eskom is in early talks with the World Bank and other partners to fund a 5,200MW nuclear expansion programme.
- The project includes conventional reactors and small modular reactors as part of South Africa’s energy transition strategy.
- Funding options under consideration include PPPs and vendor financing, as Eskom lacks capacity to fund the project alone.
South Africa’s state-owned power utility Eskom has begun exploratory discussions with the World Bank Group over potential funding support for a major nuclear energy expansion programme.
The proposed project could deliver up to 5,200 megawatts of new nuclear generation capacity and may be launched within the next 12 months, according to senior company officials.
The discussions are part of broader efforts to secure long-term financing for large-scale energy infrastructure as the country seeks to strengthen electricity supply stability.
Eskom, which operates under significant financial pressure, has acknowledged that it cannot independently fund new nuclear projects and is therefore exploring partnerships with international financial institutions and commercial lenders.
Officials say engagement with the World Bank Group and other potential financiers is still at an early stage, with no final funding structure agreed.
The utility is also reportedly engaging the African Development Bank and other multilateral institutions as it searches for viable financing options for its long-term energy strategy.
Project includes conventional reactors and small modular units
The planned nuclear expansion includes two major components: 4,800 megawatts from conventional pressurised water reactors and 400 megawatts from small modular reactors (SMRs).
A significant portion of the SMR capacity is expected to support Eskom’s coal-to-nuclear transition strategy, which aims to gradually reduce reliance on coal-fired power generation.
The inclusion of both large-scale reactors and modular systems reflects a diversified approach to nuclear energy development, allowing flexibility in deployment and financing structures.
South Africa continues to face persistent electricity supply challenges, prompting a shift toward more stable baseload energy sources as the country transitions away from coal, which still dominates national power generation.
Eskom currently operates the continent’s only active nuclear power station near Cape Town and is seeking to expand its nuclear footprint to enhance long-term energy security.
The move toward nuclear energy is seen as part of broader efforts to stabilise the national grid, reduce load shedding, and support economic growth through reliable electricity supply.
However, the proposal has also attracted scrutiny from environmental groups and communities concerned about nuclear safety and long-term environmental impact.
According to Eskom executives, several funding structures are being considered, including public-private partnerships (PPPs) and vendor financing arrangements, where developers finance and construct the plants.
The utility has stated that it is open to different financing ideas and models, as long as they support the successful delivery of the nuclear programme.
Officials also indicated plans to engage the market within the next 12 months for both conventional and SMR technologies as part of its procurement and development strategy.
The World Bank Group has previously indicated openness to supporting nuclear energy projects where countries include them in their long-term energy mix, although it maintains a policy of case-by-case engagement.
