Page 13 - AfrElec Week 38 2021

AfrElec NEWS IN BRIEF AfrElec

COAL GRID POLICY

SA coal plans face legal Egypt to sign contracts South Africa grants Turkey’s
action for Saudi-linked power Karpowership licences for

South Africa’s energy regulator and energy network floating power generation
department are facing a demand from some
of the country’s leading environmental groups Egypt is expected to sign contracts for a 2 GW South African energy regulator Nersa has
to halt plans to allow the construction of new electricity transmission network that will link granted Turkey’s Karpowership three licences
coal-fired power plants or face legal action. Egypt’s electricity grid to Saudi Arabia very to generate power on floating gas plant ships
Plans for the construction of 1,500 soon, Electricity Minister Mohamed Shaker at ports as part of the country’s emergency
megawatts of coal generation capacity are said. power programme, Reuters has reported,
included in the 2019 Integrated Resource Shaker added that Egypt will fund about citing a company spokesperson.
Plan for Electricity and a so-called ministerial 40% of the project, while Saudi Arabia will The National Energy Regulator of South
determination passed on Sept. 25 last year. pay for the remaining 60%. Africa (Nersa) confirmed in a statement
Bloomberg reported. The $1.6bn project is looking to connect that it had approved a total of seven power
“Our clients’ instructions are to oppose both countries’ grids with 900 kilometers of generation licences for preferred bidders,
the 1,500 megawatts of new coal in the overhead transmission cables. The cable routes including three for Karpowership.
determination and the IRP 2019 in the event it extend 25 kilometers across the sea bed. Karpowership has faced numerous
is to proceed,” the Centre For Environmental The project is expected to be completed challenges since the South African
Rights, a legal organisation, said in a by 2023, after being delayed from an original government in March granted it the biggest
statement on behalf of its clients on Tuesday. 2021 launch date due to Saudi Arabia’s Neom share of a 2,000 MW emergency power tender
The CER is representing groundWork, Vukani project. to provide the cheapest and quickest option
Environmental Justice Movement in Action As yet, eight companies have made bids for for electricity.
and the African Climate Alliance. the construction of the project in a tender that Its plan to generate power on its floating
The groups argue that the recent decision went live earlier in September. gas plant ships and plug it into the South
by the government to allow private companies Saudi Arabi’s Alfanar has so far African grid has been stridently opposed
to build power plants of up to 100 megawatts submitted the highest bid at $24.8mn, while by environment activists and local fishing
to be built without a generation license South Korea’s Hyundai Engineering and communities.
negates the need for more coal. Construction presented the lowest bid at Besides the power generation licence,
If China puts the same financial heft $446.8mn. the firm needs to clear several regulatory
behind green energy in emerging nations as it Additionally, two consortiums have hurdles, including environmental approval,
has in developing fossil fuels projects overseas, submitted proposals in early May to design and litigation challenging the tender outcome,
it’ll be a step change for global investment in and build four $1bn substations across both which is to apply for 20 years, needs to be
renewables. countries as part of the project. resolved.
President Xi Jinping told the United A Chinese-led consortium, as well as a “We have confirmation from Nersa on
Nations General Assembly this week that team comprising Hitachi, Orascom and Saudi generation licences and are very happy to
China will accelerate support to developing Services for Electromechanic Works (SSEM) be moving forward,” said a Karpowership
nations to install low-carbon energy sources have so far bid for the substations contract. spokesperson, adding that the licences were
as the nation also halts the building of new for three ports—Coega, Richards Bay and
coal power overseas. Saldanha Bay—that would collectively supply
around 1,200 MW of capacity.
Nersa said generation licences were also
approved for two battery energy storage
projects selected during the bidding round,
one involving Saudi Arabian utility developer
ACWA Power and another separate battery
project, Mulilo Total Hydra Storage, in
which a unit of TotalEnergies held a 33%
shareholding.
In June, the Department of Forestry,
Fisheries and the Environment refused
environmental approvals for the three gas-to-
power projects for reasons including non-
compliance with public participation rules.
Earlier in September, the South African
high court agreed to postpone an appeal
against an emergency tender brought by
DNG Energy, a local company, which was not
chosen from 11 preferred bidders.
Any delays in finalising the emergency

Week 38 23•September•2022 www. NEWSBASE .com P13