The decision by the environment department to refuse environmental authorisations for Karpowership SA’s multibillion-rand energy deal is likely to be appealed.
Browsing: Gwede Mantashe
The debacle surrounding South Africa’s bid to secure emergency power supplies has highlighted a dysfunctional energy policy that’s subjecting the country to intermittent blackouts.
Mineral resources & energy minister Gwede Mantashe and the two most senior officials in his department denied corruption in court papers responding to allegations by a losing bidder in a power tender.
South Africa said a legal challenge to its award of a power supply contract worth an estimated R218-billion by DNG Energy was “without merit” and “self-serving”.
Eskom doesn’t want to buy electricity from the company that won most of a government emergency power tender because it’s concerned about the cost and length of the contract, sources said.
DNG Energy, a South African gas company, has sued to halt the government’s award of emergency power supply contracts, alleging that the process was tainted by corruption.
Officials from the department of mineral resources & energy appeared before a parliamentary portfolio committee on Tuesday to brief it on the Karpowership contract to supply power from vessels to South Africa.
Government’s proposed deal with Karpowership to buy electricity generated on its three floating power stations over a period of 20 years will expose consumers to considerable risk.
The decreasing performance of the existing Eskom plants is evident in the steady decline of the energy availability factor. On average, 35% of Eskom’s power plants are standing idle at any particular time.
South Africa has announced eight preferred bidders to provide emergency power as the state-run electricity monopoly continues to implement rolling blackouts that are weighing on the economy.