South Africa grants Turkey’s Karpowership deal to ease power crisis

CAPE TOWN, May 18 (Reuters) – South Africa has granted Turkey’s Karpowership access to the three ports of Ngqura, Durban and Saldanha Bay for a period of 20 years, the transport ministry said on Thursday, as it tries to find solutions to the country’s power crisis.

Karpowership aims to generate power on its floating gas ships and distribute it through South Africa’s electricity grid. The plan received a boost from President Cyril Ramaphosa last week after he told lawmakers the ships would help ease the prolonged power shortage countrywide.

Karpowership has in the past faced numerous challenges from environmental activists and small-scale fishermen since the South African government in 2021 granted it the biggest share of a 2,000 megawatt emergency power tender to generate electricity.

On Thursday, the transport ministry said it had granted the application which was approved by the minister on Feb. 26, in consultation with Transnet National Ports Authority.

Opposition parties have criticised the 20-year contract, valued at billions of rand, saying it was too long for an emergency power supply and suggesting that none of Karpowership’s other contracts in countries such as Ghana and Brazil were for such a lengthy period.

South Africa’s state power utility Eskom earlier on Thursday warned the country to brace itself for winter when almost daily power cuts were likely to increase due to higher demand.

Africa’s most industrialised economy has seen its GDP suffer as its population copes with supply cuts lasting over 10 hours a day in the country’s worst power crisis.

A lack of investment and aging coal-fired power plants that provide the bulk of South Africa’s electricity needs, but are prone to breakdowns, are the main cause of its chronic energy woes.

Reporting by Wendell Roelf; Editing by James Macharia Chege

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