- Environmental groups reject expensive electricity from Karpowership
- Hosts protests against Karpowership projects in the greater Durban area
- Says electricity from renewable energy is cheaper
Environmental groups in South Africa, including the South Durban Community Environmental Alliance (SDCEA), hosted protests against Karpowership projects in the greater Durban area. Karpowership was recently awarded the contract for three power ships to address the capacity gap in the electricity sector. The projects were awarded under the Department of Mineral Resources and Energy (DMRE)’s Risk Mitigation Independent Power Producer Procurement Programme (RMIPPP).
The R218 billion contract, which will run for 20 years according to the SDCEA, is of great concern due to its impact on the environment. ”The pollution and greenhouse gas emissions from these ships are also of great concern. It, therefore, comes as no surprise that Karpowership’s application for environmental authorisation has been rejected by the Department of Forestry, Fisheries and the Environment (DFFE),” SDCEA said.
SDCEA also noted that despite the impact on the environment, the electricity from the Karpowership projects would be costlier than electricity from renewable sources of energy. The SDCEA noted that electricity from renewable energy costs 75c/kWh for wind and 91c/kW for solar. In comparison, electricity from the Karpowership projects will cost R1,36/kWh (SA Coega), R1,39/kWh (SA Richards Bay) and R1,62/kWh (SA Saldanha).
The Karpowership project hit a stumbling block when the DFFE rejected its application for an environmental permit. The Ministry of Mineral Resources and Energy, Gwedebe Mantashe, also extended the deadline to meet financial closure for all projects under the RMIPPP.
”Whilst the rejection has since been appealed by Karpowership, there is no indication as yet on when the final decision made by DFFE will be announced. The Minister of Mineral Resources and Energy, Gwede Mantashe, has also extended the preferred bidders’ deadline to reach financial close to the end of September 2021,” SDCEA added.