Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      MultiChoice may unbundle SuperSport from DStv

      12 June 2025

      MVNO boom is reshaping South Africa’s mobile market

      12 June 2025

      South African law is failing gig-economy workers

      12 June 2025

      MultiChoice’s TV empire shrinks – but its ‘side hustles’ are holding strong

      12 June 2025

      MultiChoice is bleeding subscribers

      11 June 2025
    • World

      Qualcomm shows off new chip for AI smart glasses

      11 June 2025

      Trump tariffs to dim 2025 smartphone shipments

      4 June 2025

      Shrimp Jesus and the AI ad invasion

      4 June 2025

      Apple slams EU rules as ‘flawed and costly’ in major legal pushback

      2 June 2025

      Mark Zuckerberg has finally found a use for his metaverse

      30 May 2025
    • In-depth

      Grok promised bias-free chat. Then came the edits

      2 June 2025

      Digital fortress: We go inside JB5, Teraco’s giant new AI-ready data centre

      30 May 2025

      Sam Altman and Jony Ive’s big bet to out-Apple Apple

      22 May 2025

      South Africa unveils big state digital reform programme

      12 May 2025

      Is this the end of Google Search as we know it?

      12 May 2025
    • TCS

      TechCentral Nexus S0E1: Starlink, BEE and a new leader at Vodacom

      8 June 2025

      TCS+ | The future of mobile money, with MTN’s Kagiso Mothibi

      6 June 2025

      TCS+ | AI is more than hype: Workday execs unpack real human impact

      4 June 2025

      TCS | Sentiv, and the story behind the buyout of Altron Nexus

      3 June 2025

      TCS | Signal restored: Unpacking the Blue Label and Cell C turnaround

      28 May 2025
    • Opinion

      Beyond the box: why IT distribution depends on real partnerships

      2 June 2025

      South Africa’s next crisis? Being offline in an AI-driven world

      2 June 2025

      Digital giants boost South African news media – and get blamed for it

      29 May 2025

      Solar panic? The truth about SSEG, fines and municipal rules

      14 April 2025

      Data protection must be crypto industry’s top priority

      9 April 2025
    • Company Hubs
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • AvertITD
      • Braintree
      • CallMiner
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • Incredible Business
      • iONLINE
      • Iris Network Systems
      • LSD Open
      • NEC XON
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Tenable
      • Vertiv
      • Videri Digital
      • Wipro
      • Workday
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Public sector
      • Retail and e-commerce
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Energy and sustainability » Karpowership angry at government over project delays

    Karpowership angry at government over project delays

    By Antony Sguazzin2 June 2022
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    Karpowership, the world’s biggest supplier of floating gas-fired power plants, said some South African government agencies have stalled its projects and their conduct isn’t conducive to creating an attractive investment environment.

    The Turkish company in March last year won the right to supply South Africa with 1 220MW of electricity, or more than 60% of a so-called emergency tender designed to ease intermittent power outages. The 20-year deal was valued at R218-billion at the time.

    It’s yet to get environmental approvals or permission to use port space, faces an indemnity demand from Eskom, and is embroiled in court cases with environmental activists and a rival. While some other bidders are due to conclude power-purchase agreements with Eskom and the energy department on Thursday, Karpowership has been told it won’t be signing at this stage.

    We expect the government to work together cohesively to unblock the few remaining bottlenecks

    There are “notable examples of authorities whose conduct isn’t aligned with the purpose” of the power programme, Karpowership said, citing a lack of transparency and urgency. “We expect the government to work together cohesively to unblock the few remaining bottlenecks preventing the delivery of our projects,” it said in a statement.

    Its projects will entail R20-billion of investment and create several hundred jobs, the company said, adding it has already spent R400-million on applications and established an office in Johannesburg.

    Karpowership listed the obstacles as follows:

    • The failure by the department of environmental Affairs to rule on a 13 July appeal filed against its 23 June refusal to grant Karpowership environmental clearance. Karpowership said the appeal process should have legally been completed within 120 days but it has been told a decision can’t be expected before 1 July.
    • The departments of transport and public enterprises have yet to make a decision on whether the company’s ships will be allowed to moor at the nation’s ports. An application was made on 12 May 2021.
    • Eskom on 23 March demanded that Karpowership sign a “wide-reaching, open-ended indemnity agreement” that “potentially renders the projects unbankable”. Karpowership hasn’t received a response to a proposal it submitted to Eskom. The other bidders weren’t asked to do the same.
    • A high court decision allowing DNG Power Holdings to appeal a ruling dismissing its allegations that Karpowership’s contract was tainted by corruption.
    • Separate court cases filed by the Organisation Undoing Tax Abuse (Outa) and The Green Connection against the National Energy Regulator of South Africa, or Nersa, for granting Karpowership generation permits on the last day they were legally permitted to oppose the award.

    Eskom and the departments of environmental affairs, transport and public enterprises didn’t immediately respond to requests for comment. Stefanie Fick, head of legal affairs at Outa, and Liziwe McDaid, a board member at The Green Connection, denied coordinating their lawsuits, saying they had weighed whether it was worth the expense of filing cases.

    Karpowership said it worked well with the department of mineral resources & energy, Nersa and Transnet National Ports Authority.

    Environmental concerns

    Activists say Karpowership’s plants will damage the environment and affect fishing. They also allege that the use of natural gas, especially over 20 years, will undermine South Africa’s aim of cutting greenhouse-gas emissions.

    Other companies that won emergency power supply contracts include TotalEnergies, Électricité de France, Scatec and Acwa Power. The project TotalEnergies is backing also uses liquefied natural gas.

    Karpowership said it received no reply from the government to its offer to have senior management make presentations explaining its projects, which were initially supposed to begin producing power in August. It said it had won all necessary approvals and will start delivering 563MW of power in Brazil in July, 10 months after winning a similar bid in that country.  — (c) 2022 Bloomberg LP



    Karpowership Nersa
    Subscribe to TechCentral Subscribe to TechCentral
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSolana blockchain hit by massive outage
    Next Article Sheryl Sandberg quits Meta after 14 years

    Related Posts

    Eskom winter forecast: stable grid, soaring electricity tariffs

    13 May 2025

    Nersa approves Eskom tariffs – here’s how much more you’ll pay

    17 March 2025

    South African electricity prices have doubled since Covid

    31 January 2025
    Company News

    Building a cyber-resilient culture from the boardroom to the front lines

    12 June 2025

    How South Africa’s municipalities are finally getting smart

    12 June 2025

    Ransomware roulette: pay up or power through?

    11 June 2025
    Opinion

    Beyond the box: why IT distribution depends on real partnerships

    2 June 2025

    South Africa’s next crisis? Being offline in an AI-driven world

    2 June 2025

    Digital giants boost South African news media – and get blamed for it

    29 May 2025

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2025 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.