The department of forestry, fisheries and environment failed to consider that the powership fleet is “vital” for alleviating South Africa’s energy crisis and is “therefore a national priority”, said Karpowership SA in its internal appeal to the department.
In June, the department refused to grant environmental authorisation for the powerships for, among other reasons, failing to meet the minimum public participation requirements under the country’s environmental legislation.
The site assessment of marine noise is an “impossibility”… “since there is no established precedent in South Africa and no powership is yet permitted to moor”. under the department of mineral resources and energy’s emergency procurement programme to provide 1 220MW of electricity. It missed financial close at the end of July and the deadline has now been extended to 30 September for preferred bidders.
Socioeconomic and procurement considerations under the Risk Mitigation Independent Power Producer Procurement Programme “do not, and cannot override the considerations on need and desirability as prescribed under the environmental impact assessment [EIA] regulations”, said groundWork.
The institute’s report indicates that as renewable energy prices continue to decrease, gas capacity will become increasingly costly in comparison. The report found that Karpowerships do not best serve South Africa’s needs because of the financial risk presented by the high costs of gas plants designed for short-term emergency use being locked in for a 20-year period under the power purchase agreement, where excessive costs may be passed on to ratepayers and become a financial burden for Eskom.
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