Energy procurement deals on the spotlight

South Africa has struck a R218 billion energy deal with Turkish company Karpowership to provide South Africa with power from Ships. The three floating power stations - which use Liquefied Natural Gas to produce electricity - are expected to dock at Saldanha, Richards Bay and Gqeberha towards the second half of next year. The Dept. of Mineral Resources and Energy has however acknowledged that Karpowership, which will supply 450 megawatts of electricity from gas, does not meet the local content requirement for the ships it will use. Deputy Director General Jacob Mbele told parliament that the final agreements are yet to be signed . Meanwhile, Energy Analyst Clyde Mallinson says the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) is expensive and should be replaced by a materially larger, cost-effective, procurement programme based primarily on renewables and storage, rather than power ships. Mallinson has written to the Department of Public Works and Infrastructure (DPWI) and the Independent Power Producer (IPP) Office to highlight these expensive shortcomings of the RMIPPPP.