Trade & Industry

Western Cape Government Oppose Karpowership Deal

The Western Cape government has decided not to go with the Karpowership investment to solve the country’s energy crisis. The western cape government was set to invest in a Karpowership contract dealership for a period of 20 years which is currently the preferred bidder for three of its projects in the Risk Mitigation Independent Power

Western Cape Government Oppose Karpowership Deal

Western Cape Government Oppose Karpowership Deal

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The Western Cape government has decided not to go with the Karpowership investment to solve the country’s energy crisis.

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The western cape government was set to invest in a Karpowership contract dealership for a period of 20 years which is currently the preferred bidder for three of its projects in the Risk Mitigation Independent Power Producer Procurement programme.

Premier Alan Winde said, “A 20-year contract – we can’t support this kind of intervention although we do know that our energy situation is dire. We’ve got to make sure that it’s open to multiple suppliers for short periods for emergency.”

“I do not believe investing vast resources into one company is appropriate, and allowing Karpowership to operate in South Africa for such a long time should not be allowed.”

“Karpowership should not be given the monopoly. If we are to include power ships in our efforts to resolve the energy crisis, we must also consider other companies and the time period over which they would be utilised must be strictly limited to five years, subject to clear guidelines. This measure should also not negate our investment into green energy,” he said.

The Turkish company is the operator and owner of the world’s largest fleet of power ships. According to TechCentral, the company aims to undertake the floating gas-to-power projects at the ports of Richards Bay, Saldanha Bay and Ngqura, using imported liquified natural gas as a fuel source.

Winde said that the government needs to take into consideration other companies too.

Source: Eyewitnessnews

Reporting for Business Tech Africa on the funding, tools and strategy shaping the continent's founders and SMEs.

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