Why South Africa failed to secure international deal to resolve power crisis

President Cyril Ramaphosa announced updates to legislation which encouraged local private developers to supply electricity to alleviate the country’s power shortage. Picture: Bongiwe Mchunu/ANA Archives

President Cyril Ramaphosa announced updates to legislation which encouraged local private developers to supply electricity to alleviate the country’s power shortage. Picture: Bongiwe Mchunu/ANA Archives

Published Aug 9, 2022

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Cape Town – Hopes of alleviating South Africa’s power crisis received another blow when Turkish company Karpowership’s plan to supply more than 1 200 megawatts of power to South Africa fell through because of environmental issues.

According to BusinessTech, Karpowership which supplies ship-mounted gas-fired power plants had “perceived gaps” in its application after it had initially won more than 60% of an emergency power tender to ease South Africa’s shortage.

The company was meant to begin supplying power this month, however, South African Environment Minister Barbara Creecy dismissed the initial application after a protest and complaint was lodged by environmental activists about the impact it would have on the local ecosystems, fishing and greenhouse gas emissions.

“We respect Minister Creecy’s exercise of her powers, but we are very disappointed with the outlook especially given the time it took to make a decision,” Karpowership said.

“The company will refile its submission and hopes that the process will be much timelier than it has been to date,” it said.

Last month, President Cyril Ramaphosa announced updates to legislation which encouraged local private developers to supply electricity.

The measures include procuring power from companies such as shopping malls, mines and paper mills as well as excess power from neighbouring countries in the SADC.

“One of the challenges that Eskom has faced has been the shortage of skilled personnel and engineers. The utility is now recruiting skilled personnel, including former senior Eskom plant managers and engineers from the private sector,” said Ramaphosa.

This would “help to ensure that world-class operating and maintenance procedures are reinstated”, he said.

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