allAfrica.comCape Town — According to Rudi Dicks, head of the project management office in the Presidency and member of the National Energy Crisis Committee, government is discussing the possibility of reducing the term for Karpowership contracts as an"emergency' measure", . Dicks called for contracts of potentially five to ten years would be preferable to the initial term of 20 years.
Despite being named as a preferred bidder in government's Risk Mitigation Independent Power Producer Procurement Programme in 2021 to provide over 1 200MW of power at at three of South African ports, Karpowership - which utilises off-shore ships as floating gas power plants - has drawn criticism over the cost of its 20-year contract along with its refusal of environmental authorisation for its three vessels at the selected docking sites of Richards Bay, Ngqura and Saldanha Bay.
Dicks said:"Of course, the initial term has been 20 years, we have taken the view as Necom [the National Energy Crisis Committee] that a shorter-term period would have to be looked at, potentially between five and ten years. "It's really because this is an emergency intervention . . . [and] this, of course, goes to the heart of whether one has to sign a 20-year power purchase agreement. This is the conversation we are having, and Minister Ramokgopa is already having engagements with Karpowership with regard to these sorts of interventions."
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Australia Australia Latest News, Australia Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Govt in talks over shorter contracts for Karpowership | BusinessGovernment is in discussions about reducing the term for Karpowership contracts, according to Rudi Dicks, who heads the project management office in the Presidency. | News24_Business
Source: News24 - 🏆 4. / 80 Read more »
Shortening of Karpowership Contracts on the Cards in South AfricaSince 2010, Karpowership, a Turkish power producing firm, has been utilising off-shore ships as floating gas power plants. The company contracts to provide countries with power extends up to 20 years. With South Africa looking to Kapowership to assist with its load shedding crisis, concerns have been raised at the cost and the length of time of the contracts, as well as its impact on the environment. According to Rudi Dicks, head of the project management office in the Presidency and member of the National Energy Crisis Committee, the government is discussing the possibility of reducing the term for Karpowership contracts as an "emergency' measure". Dicks called for contracts of potentially five to ten years would be preferable to the initial term of 20 years. This follows a comment by Electricity Minister Kgosientsho Ramokgopa who recently said that contracts with emergency power producers should not last longer than three to five years. Despite being named as a preferred bidder in government's Risk Mitigation Independent Power Producer Procurement Programme in 2021 to provide over 1,200MW of power at at three of South African ports, Karpowership has also drawn criticism over its refusal of environmental authorisation for its three vessels at the selected docking sites of Richards Bay in KwaZulu-Natal province, Ngqura in the Eastern Cape province and Saldanha Bay in the Western Cape province. The Karpowership deal is aimed to lessen the impact of load shedding on the country which as affected the economy, most notably small businesses, with up to 64% of township small businesses stopping operations during scheduled power cuts.
Source: allafrica - 🏆 1. / 99 Read more »
Block exemptions open way for emergency energy project collaborationCompetition law exemptions allow companies to collaborate on emergency energy projects
Source: BDliveSA - 🏆 12. / 63 Read more »