‘Businesses will benefit from increased economic activity’: Karpowership deal backed to create jobs

South Africa requires a swift, dependable remedy that can promptly alleviate the impact of load shedding and restore stability to the energy transmission network.

This is according to experts who noted that the Karpowership deal would bring in much-needed additional electricity supply.

Karpowership SA has received environmental authorisation from the Department of Forestry, Fisheries and Environment to proceed with plans to implement the floating gas power ships in the port of Richards Bay following delays in the past three years.

Variable renewable energy

Energy analyst Lungile Mashele said SA had a growing demand for electricity, but struggled with intermittent power supply and an ageing infrastructure, and while fossil fuel exploration was met with strong opposition due to environmental concerns, government was determined to find a solution to bridge the energy gap.

“Speaking of gas broadly, it plays a very important balancing, ramping and system flexibility role,” she added.

“Especially with the increase in variable renewable energy and the increasing duck curve – gas plays a pivotal role.”

According to Karpowership, the decision to grant environmental authorisation for its Richards Bay environmental impact assessment application represented “a meaningful turning point in this extensive process.

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“Karpowership SA is proud to be able to play a significant role with its state-of-the-art liquid natural gas-to-power technology in Richards Bay, assisting South Africa in achieving its net-zero targets,” the company said.

“It also recognises the importance of this decision in enabling us to power beyond the grid in our efforts to play a role in South Africa’s energy transition.

“We have previously stated our commitment to the local communities through various job opportunities and socio-economic initiatives. For our Richards Bay project, about R6 billion is dedicated to economic development for the life of the project.

“Our next focus is on meeting financial close, which will require us to finalise our agreements with Transnet National Ports Authority. Karpowership SA remains committed to South Africa and the process set out and led by the department of mineral resources and energy and the Independent Power Producers office.”

Increased economic activity

Another energy analyst Linda Alexander said the floating power stations weren’t just about providing energy.

“They also offer job opportunities for local communities, skilled technicians will be trained to operate and maintain the sophisticated machinery, and local businesses will also benefit from the increased economic activity,” she said.

“As the Karpowerships multiply along South Africa’s coastlines, the nation will witness a remarkable change.”

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