South Africa: Roll-Out of New Emergency Generation Capacity in South Africa Increasingly in Disarray

Karadeniz powership Osman Khan, top left, energy sources, sea life, South African flag, bottom right
analysis

Following the announcement on 18 March 2021 of preferred bidders for 2,000MW of new emergency generation capacity in South Africa, the 'non-negotiable' timelines for both financial closure by end July 2021 and power to the grid by mid to end 2022, are looking increasingly unlikely. In addition, the local content designated by the Department of Trade, Industry and Competition for plant and components procured under this Risk Mitigation Independent Power Producer Procurement programme is proving to be significantly unrealistic.

Chris Yelland is managing director, EE Business Intelligence.

Some 1,220MW or 61% of the 2,000MW of dispatchable generation capacity procured under the Risk Mitigation Independent Power Producer Procurement (RMIPPP) programme is to come from three floating power plants (powerships) and floating storage and regasification units (FSRUs), all leased from Turkish company Karpowership and moored in South African harbours for 20 years.

Already, Karpowership has successfully applied for exemption from the local content designated by the Department of Trade, Industry and Competition (dtic) for ships, in the request for proposals documents of the IPP Office of the Department of Mineral Resources and Energy (DMRE). The powerships, FSRUs and all associated onboard equipment will come fully equipped, with no local content.

Furthermore, the...

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