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Energy regulator approves new generation licenses, including three for Karpowership SA

Karpowership


The National Energy Regulator of South Africa has approved generation licenses for seven new energy producers.

NERSA said the approval of the licenses on Tuesday was based “on the available information and analysis conducted on the applications for generation licences” by the seven preferred bidders in terms of government’s Risk Mitigation Independent Power Producer Procurement Programme.

Among the seven power producers is Karpowership SA, which was granted licenses to operate floating power plants at Coega in the Eastern Cape, Richards Bay in KZN, and Saldanha Bay in the Western Cape.

The other companies to receive licensees are Oya Energy (Pty) Ltd, Umoyilanga (Pty) Ltd, ACWA Power Project DAO (Pty) Ltd, and Mulilo Total Hydra Storage (Pty) Ltd.

Reacting to the Nersa decision, the lobby group, Green Connection, said it was “totally unacceptable” that the regulator had approved the licenses for Karpowership SA.

It said the company has “been mired in controversy since it was touted as a so-called energy solution, more than a year ago.”

A losing bidder has launched a legal challenge against the decision by the Minister of Energy, Gwede Mantashe in March to name eight preferred bidders under the 20-year RMIPPPP, to secure a collective 1 220 MW of the 2000 MW on offer

In June, the Department of Forestry, Fisheries and the Environment turned down the company’s environmental authorisation for its three gas-to-power projects.

Karpowership SA is contesting the Department’s decision and is being supported by the Eastern Cape Maritime Business Chamber and the National African Federated Chamber of Commerce and Industry Nelson Mandela Bay.

In response to the environmental decision, Karpowership SA said it conducted a robust public participation process, met all environmental requirements, and was “confident that it will win the appeal” against the environmental decision.