Government is planning to launch a procurement process for 3 000MW of gas-fired energy generation, with the most likely options being the deployment of power ships or a floating LNG terminal.
The new gas generation facilities will be located in Richards Bay and or Mossel Bay.
Ironically, a 3 000MW gas-to-power proposal to the National Energy Regulator of SA (Nersa) more than a year ago was turned down in December.
The National Energy Crisis Committee (Necom), which met for two full days last week, has recommended that government procure 9 500MW of new capacity by 2024.
This also includes new pumped storage plants and additional publicly procured renewable energy, batteries and gas generation. Some of the new capacity — about 775MW — will be procured on an emergency basis. While the presentation by the committee which was circulating unofficially on Friday does not make specific reference to power ships, there is strong support in the government for a power ship contract with a three- to five-year limit.
An earlier emergency procurement launched by Mineral Resources and Energy Minister Gwede Mantashe in July 2020 ended mostly in disaster with only three projects reaching financial close.
The specifications were for a 20-year contract of dispatchable energy.
It is suspected that the tender was designed to enable an easy win by Turkish company Karpowership.
However, the award of the contract has been under litigation by losing bidders for over a year. Karpowership has also not yet obtained all its approvals including environmental clearance and port approvals. — News 24
