MELISSA FOURIE: Desperate times call for sober thoughts

Karpowership projects could have serious implications for the funding of SA’s Just Energy Transition PartnershipIn desperate situations it is tempting to accept any proposal that offers to relieve the pain. But short-term solutions can be costly and may take years and even decades to undo. And so it may well be with allowing floating gas powerships from Turkey into our ports.a long-term contract with KarpowershipSA would be a financial and climate albatross around the country’s neck .

It is worth noting that the total power the state would purchase from KarpowershipSA under the RMIPPP is only 1220MW. While every MW counts, a Karpowership contract alone will not bring an end to load-shedding; nor will any contract with KarpowershipSA result in power being delivered overnight. Given that the KarpowershipSA bid was already far more expensive than renewable energy projects, this increase would have significant implications for the fiscus and raises questions about value for money, as required by the Public Finance Management Act.

What of the developers that lost out to KarpowershipSA in the RMIPPP on the basis of price? Surely, under the PFMA the IPP office would have to run a new open procurement process? At the very least the bids that would then be cheaper than the Karpowership revised price for a five- or 10-year contract should be reconsidered — in the interest of fairness, but also in the public interest of getting value for money.

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Karpowership deal won’t stop load shedding, says OutaOuta is taking the energy regulator Nersa to court over licences granted to the Turkish company, which wants to use a power ship to add 1,200 megawatts of electricity to the grid. That's one stage of loadshedding right there. At one financial cost, I don't know. But how can SA media celebrate 155MW of wind power being added in the future to the grid, and then focus on the fact that 1.2GW won't solve loadshedding? That's obvious, OUTA must just accept that Kapowerships are part of the new generation of energy mix this country sorely need. Okay OUTASA , to adopt this attitude during a disastrous situation is wrong. You must have solar panels and lots of generators. The karpowerships are only used in emergencies. What do you suggest instead?
Source: ewnupdates - 🏆 30. / 53 Read more »