Gwede Mantashe says powerships will supply SA with 1 220MW of power

By Siyabonga Mkhwanazi Time of article published May 15, 2021

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Cape Town - Minerals and Energy Minister Gwede Mantashe has revealed that the Turkish company that is supplying the country with floating power plants to address power shortages is supplying 1 220MW.

The three powerships are located in three coastal areas stretching from the Eastern Cape to the town of Richards Bay in KwaZulu-Natal.

Karpowership has been a subject of controversy in recent weeks with allegations of impropriety.

But Mantashe has denied any political interference in the awarding of the contracts.

Senior officials from the department also told MPs a few weeks ago that the bidding process was fair, competitive and above board.

The officials said the emergency power procurement was to deal with the problem of load-shedding.

In his written reply in Parliament from DA MP Kevin Mileham Mantashe said the Turkish company will supply 1 220MW.

“The total combined power output/capacity of the three floating Liquefied Natural Gas Turbine, or Powership, projects appointed as Preferred Bidders under the Risk Mitigation Power Producer Procurement Programme (RMIPPP) is 1 220 MW, broken down between the three; Karpowership SA Coega 450 MW, Karpowership SA Richards Bay 450 MW and Karpowership SA Saldanha 320 MW,” said Mantashe.

On the cost for each ship to produce Mantashe said: “The power procured under the RMIPPP will be dispatchable and the seller (the IPP) will be compensated for availability (capacity) for energy output generated following a dispatch instruction from the buyer.

The cost of the bid by the bidder is inclusive of grid connection costs.

The cost per KWh in April 2021 terms and assuming a 75% load factor is as follows: “Karpowership SA Coega, R1 359/KWh, Karpowership SA Richards Bay, R1.389/KWh, Karpowership SA Saldanah, R1,616/KWh,” said Mantashe.

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