Page 7 - AfrElec Week 19 2021
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AfrElec GENERATION AfrElec
The IFC considers funding costly
power ships in South Africa
SOUTH AFRICA THE International Finance Corp.’s interest in “Supporting gas subjects countries to the risks
supporting potential suppliers of emergency of increasingly volatile pricing, lock-in of obso-
power to South Africa has provoked criticism lete infrastructure and stranded assets.”
from climate activists. The Turkish company won its first African
The IFC is considering providing funds to contract in Ghana in 2014, starting with a barge
support Turkey’s Karpowership, which won a equipped with a 200-MW power plant and
tender in March to supply 1,200 MW of emer- anchored in the coastal city of Tema. To date,
gency power for 20 years, Bloomberg reported. Karpowership has nearly 850 MW in operation
The Turkish company, which converts oil or offshore Africa.
gas tankers into floating power plants that burn The Istanbul-based company currently sup-
heavy fuel oil (HFO), has until the end of July plies 26% of the electricity produced in Ghana,
to secure the funding and necessary approvals to 10% in Mozambique, 80% in the Gambia and
sign a power purchase agreement (PPA). Sierra Leone, and 10% in Sudan.
The potential involvement of the IFC comes The company is also looking to supply its
as environmental groups put pressure on inves- Powership solution to Morocco.
tors, including development finance institutions, The IFC said that it has only given an expres-
to halt investment in fossil fuels such coal, oil and sion of interest (EoI), and would still need to
natural gas. carry out due diligence.
Activists and the main opposition party in South Africa depends on coal for almost all
South Africa unsuccessfully pressed for a par- its electricity generation and has sought to pro-
liamentary inquiry into the award of preferred cure 2,000 MW of emergency power because
bidder status to Karpowership. state-owned utility Eskom cannot meet demand
Karpowership has said it won the auction and has subjected the country to intermittent
fairly, as its bids were more competitive than outages.
others. The IFC told Bloomberg it “considers financ-
“The IFC is not going to help advance eco- ing in natural gas projects that can expand access
nomic development by supporting the harmful to energy for the poor and provide reliable power
fuels and technologies of the past,” Friends of the for industry, displace carbon-intensive coal and
Earth United States, an environmental group, oil, and enable integration of a higher share of
said. renewables into a country’s economy.”
Week 19 13•May•2021 www. NEWSBASE .com P7
