Thabo Molekoa, Siemens Energy Southern and Eastern Africa chairman and managing director, and Necsa Group CEO Loyiso Tyabashe at the signing of the Memorandum of Understanding (MoU) aimed at strengthening collaboration in energy generation and emerging nuclear technologies, including Small Modular Reactors (SMRs).
Image: Supplied
The South African Nuclear Energy Corporation (Necsa) and Siemens Energy have signed a strategic Memorandum of Understanding (MoU) aimed at strengthening collaboration in energy generation, advanced manufacturing, skills development and emerging nuclear technologies, including Small Modular Reactors (SMRs).
The agreement, announced on Wednesday, marks a significant step in South Africa’s efforts to bolster energy security while promoting industrial development and innovation.
As the country continues to grapple with energy challenges and seeks new sources of reliable power, the collaboration between Necsa and Siemens Energy signals growing interest in advanced nuclear technologies and their potential role in South Africa’s evolving energy landscape.
Under the framework of the MoU, the two organisations will explore opportunities to work together on power generation projects, the development of skills needed to support the energy sector, advanced manufacturing for both the nuclear and broader industrial sectors, and the implementation of National Industrial Participation Programmes linked to infrastructure projects undertaken by the two entities.
The partnership brings together Necsa’s expertise in nuclear research and development with Siemens Energy’s global experience in engineering, digitalisation and energy technologies.
Necsa Group CEO Loyiso Tyabashe said the agreement would help strengthen partnerships that support the successful delivery of energy projects while building local capabilities.
“This MoU presents Necsa with a lever to strengthen partnerships that drive successful implementation of energy projects, innovation whilst also building local capability,” said Tyabashe.
“Delivery against the MoU will be closely monitored through joint working teams from identification of projects to implementation to ensure timely and effective coordination between the two organisations.”
The collaboration comes at a time when South Africa is seeking to diversify its energy mix and improve the reliability of electricity supply.
Small Modular Reactors have increasingly attracted international attention as a potential low-carbon energy source that can be deployed more quickly and at a smaller scale than conventional nuclear power stations.
While South Africa already operates the Koeberg Nuclear Power Station, the country has been exploring options to expand its nuclear energy capabilities as part of a broader strategy to ensure long-term energy security and support economic growth.
Thabo Molekoa, Siemens Energy Southern and Eastern Africa chairman and managing director, said the agreement demonstrates the company’s commitment to supporting South Africa’s energy transition and future energy needs.
“This Memorandum of Understanding reflects Siemens Energy’s commitment to collaborating with partners like Necsa to support the development of South Africa’s energy system,” said Molekoa.
“By combining our expertise in engineering and technology with Necsa’s nuclear capabilities, we see strong potential to advance collaboration in areas such as Small Modular Reactors for power generation.”
He added that the company was particularly encouraged by opportunities to support skills development and industrial growth.
“We are particularly encouraged by the opportunities this creates for skills development and industrial growth, which are important for strengthening energy security and economic resilience,” Molekoa said.
The agreement also seeks to create opportunities for local manufacturing and industrial participation, potentially supporting the development of domestic supply chains and technical capabilities linked to future energy infrastructure projects.
According to the two organisations, the partnership aligns with South Africa’s broader objectives of achieving greater energy security while driving sustainable economic development.
Necsa, which is responsible for developing and managing nuclear technology for national and regional socio-economic development, has long played a central role in South Africa’s nuclear research, innovation and skills development efforts.
Siemens Energy, meanwhile, is a global energy technology company that provides products and services across the energy value chain, including power generation, transmission and energy storage solutions.
Although the MoU is non-binding and does not commit either party to specific projects at this stage, it establishes a framework for future cooperation and paves the way for more detailed partnership and commercial agreements.
The organisations said the agreement lays the foundation for exploring innovative technologies and strategic initiatives that could contribute to a more resilient and sustainable energy future for South Africa while supporting industrialisation and job creation.
BUSINESS REPORT