Karpowership says S.Africa grants licences for floating power generation

Alma Metals

21/09/2021 17:51

CAPE TOWN, Sept 21 (Reuters) - South African energy
regulator Nersa has granted Turkey's Karpowership three licences
to generate power on floating gas ships at ports, a company
spokesperson said on Tuesday.
    A spokesperson for the National Energy Regulator of South
Africa (Nersa) did not respond immediately to a request for
comment.
    Karpowership has faced numerous challenges since the
government in March granted it the biggest share of a 2,000
megawatt emergency power tender to provide the cheapest and
quickest option for electricity. 
    Its plan to generate power on its floating gas ships and
plug it into the South African grid has been stridently opposed
by environment activists and local fishing communities.
    Besides the power generation licence, the firm needs to
clear several regulatory hurdles, including environmental
approval, and litigation challenging the tender outcome that
runs for 20 years needs to be resolved.  urn:newsml:reuters.com:*:nL8N2QB3N3
    "We have confirmation from Nersa on generation licences and
are very happy to be moving forward," said a Karpowership
spokesperson, adding the licences were for three ports that
would collectively supply around 1,200 MW of capacity.
    In June, the Department of Forestry, Fisheries and the
Environment refused enviromental approvals for the three
gas-to-power projects for reasons including that it did not
comply with public participation rules.  urn:newsml:reuters.com:*:nL5N2O61Y3
    Earlier in September, a South Africa high court agreed to
postpone an appeal against the emergency tender brought by DNG
Energy, a local company, which was not chosen from 11 preferred
bidders and wants the decision overturned.
    Any delays in finalising the emergency power tender could
prolong an energy crisis that has cost Africa's largest
industrial nation billions of dollars in lost revenue due to
regular electricity blackouts.

 (Reporting by Wendell Roelf; editing by Barbara Lewis)
 ((wendell.roelf@thomsonreuters.com; +27 21 461 3523;))