Western Cape government against proposed 20-year Karpowership deal

Procuring electricity from Karpowership over 20 years as an emergency measure to mitigate the energy crisis is not in the best interests of the Western Cape.

The provincial government adopted this stance on Wednesday in a position statement on the procurement of electricity from the Turkish company via its floating power stations.

The province insists its future electricity generation should be derived from low-carbon, renewable technologies.

The provincial cabinet had requested intensive research be carried out into the possibility of exploring the Karpowership route.

Premier Alan Winde said it was resolved that “investment into Karpowership technology for a 20-year period is not in the best interests of the Western Cape and the country”. 

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

“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’.” 

Karpowership is a preferred bidder under the national government’s risk mitigation independent power producer procurement programme.

“This crisis demands urgent interventions which must be considered in a transparent manner. We must explore all viable and feasible options to end rolling blackouts, but not at the expense of other role players in the energy space who should also be given the opportunity to be a part of the overall solution,” said Winde. 

The province emphasised that renewable energy projects must form an integral part of its future energy mix.

“Not only is [renewable energy] becoming increasingly cost-effective, it will also assist greatly in our transition away from fossil fuels,” said Winde. 

“We need to strike a balance. We have an obligation to meet the country’s climate change commitments while at the same time growing our economy, which requires a stable, resilient, low-carbon energy mix.”

Local government, environmental affairs and development planning MEC Anton Bredell said: “The energy choices we make now will impact the natural environment we hand over to future generations.

“As a government, we should be careful not to take knee-jerk actions.” 

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