The world is changing fast and to keep up you need local knowledge with global context.
Karpowership, the Turkish energy company, has achieved a significant milestone in its efforts to alleviate South Africa’s energy crisis. After overcoming legal challenges from environmental activists, the company has obtained environmental authorisation for a 450-megawatt gas-fired power plant in Richards Bay, a crucial step toward fulfilling its contract to supply 2,000 MW of power. This development marks a turning point in a lengthy process, and Karpowership’s projects are poised to contribute significantly to addressing South Africa’s persistent energy challenges.
Sign up for your early morning brew of the BizNews Insider to keep you up to speed with the content that matters. The newsletter will land in your inbox at 5:30am weekdays. Register here.
Karpowership Wins Environment Permit for South African Power Plant
By Antony Sguazzin
Karpowership won environmental authorization for one of three ship-mounted power plants it wants to connect to the South African grid, a key step in fulfilling a contract it won more than two years ago.
The Turkish company said the Department of Forestry, Fisheries and the Environment gave it permission to go ahead with the installation of a 450-megawatt gas-fired plant in the northeastern port of Richards Bay.
While the company must still complete its agreements with the national ports company before it can proceed, its environmental authorization applications have been the subject of a number of legal challenges from environmental activists. It has also applied to install a 450 MW plant in the southern port of Ngqura and a 320 MW plant in the western port of Saldanha.
The “outcome represents a meaningful turning point in this extensive process,” the company said in a statement Friday. The “projects will make an important contribution to combating South Africa’s energy crisis,” it said.
Karpowership won about 60% of a government tender in March 2021 to supply 2,000 MW to ease chronic power shortages in the country. While the initial target date for power production for Karpowership and other winners in the tender was August 2022, none of them are up and running yet.
Activists have objected to the company’s planned use of gas, a fossil fuel, and the potential impact of its so-called powerships and associated gas storage vessels on sea life and small-scale fishing. A unsuccessful court case by a rival bidder that failed to win a contract also delayed Karpowership from implementing its plans.
South Africa has, since about September last year, suffered almost daily power outages, sometimes for a long as 10 hours or more a day, because state power utility, Eskom Holdings SOC Ltd., can’t meet demand. Those outages have eased in recent weeks.
- Kusile power station return raises health concerns: What Eskom is not telling South Africans
- South Africa’s botched coal power plant transition
- Karpowership deal could cost South Africa R200 billion and do little to solve loadshedding – Kevin Mileham
© 2023 Bloomberg L.P.
Cyril Ramaphosa: The Audio Biography
Listen to the story of Cyril Ramaphosa's rise to presidential power, narrated by our very own Alec Hogg.