A senior policy researcher suggested that South Africa should consider India's approach to addressing its energy crisis, especially in relation to electricity, while focusing on nuclear energy and the involvement of the private sector in this field. Redge Nkosi, executive director and head of research for energy, banking, and macroeconomic policy at the Centre for Alternative Political and Economic Thought, shared these views in the daily Business Report and highlighted India's plans.
Nkosi noted that India, as a BRICS member and the most populous nation in the world, having surpassed China, is expected to build over 18 nuclear reactors with a capacity of 13.8 GW by 2032 to enhance its energy mix. This initiative was announced by Indian Prime Minister Narendra Modi. He explained that the financing for this expansion would come from state public banks and domestic commercial banks, with the Indian Reserve Bank playing a significant role in the national effort.
Nkosi also pointed out that while some foreign elements are involved, India maintains yield control to keep debt reasonably priced. He highlighted that this approach serves as a model for a developing country with national interests guiding its policies. Nkosi referenced India's Finance Minister Nirmala Sitharaman's recent announcement in the 2024-25 budget about involving the private sector in atomic energy for the first time in the country's history. He noted that India is not inexperienced with private sector involvement in such areas and cited detailed information from the Indian budget document on nuclear development.
Nkosi suggested that South Africa's Minister of Electricity, Kgosientso Ramokgopa, and the South African Treasury could study India's public-private partnership model as a potential solution. He emphasised that understanding how India uses its macroeconomic tools to reduce energy costs could provide valuable insights, particularly as South Africa faces significant public backlash over substantial electricity price hikes by municipalities served by the state-owned Eskom.
Nkosi advised that South Africa should urgently examine how its BRICS counterparts manage their energy diplomacy in a way that protects national interests and engages the private sector effectively.
