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AfrElec GENERATION AfrElec
Legal action over SA’s emergency
supplies could delay start-up
SOUTH AFRICA DNG Energy’s legal action in the South African This could potentially delay the whole pro-
courts over corruption in the award of emer- cess beyond the launch of power supplied in
gency power contracts could delay the start of August 2022.
supply beyond the planned date of August 2022. At stake is South Africa’s ability to maintain
The High Court case, which was filed its level of power supplies to industrial and
by DNG Energy, has been postponed until domestic customers.
November 30. However, the government had Eskom has continued to carry out load-shed-
set a deadline of September 30 for the winning ding, or power cuts, at various times over the
bidders to achieve financial closure with their last two years.
backers, again delayed from July. This has held back the economic growth in
The winning bidders include Karpowership the country and had damaged global confidence
from Turkey, which provides power from off- in investing in South Africa’s economy.
shore, ship-based generators using dirty fuel For example, Eskom said in mid-August that
oil or natural gas, and won 60% of the 2 GW of power plant breakdowns had reached 13,557
contracts on offer, as well as TotalEnergies, Elec- MW, while planned maintenance was at 4,074
tricite de France, Scatec and ACWA Power. In MW of capacity.
its legal action, DNG wants Karpowership to be The emergency supply tenders have also
replaced as a preferred bidder, citing corruption been controversial, as they still relay on dirty
allegations. fossil fuels to a great extent, for example with
Investors who have been reportedly inter- Karpowership, rather than renewables.
ested in backing Karpowership include ABSA Eskom has plans to close down 8,000 MW
Group, Investec and the Development Bank to 12,000 MW of coal-fired plants over the next
of Southern Africa, while Nedbank is also decade – a cut that amounts to up to 30% of its
committed to funding several of the projects, current capacity.
Bloomberg reported. Eskom CEO André de Ruyter said in August
However, Nedbank and others are unsure that South Africa could not ignore its carbon
how the legal action will affect Eskom and the footprint, and that the company must pivot
government with signing financing contracts towards green energy.
with the bank.
P10 www. NEWSBASE .com Week 38 23•September•2022
