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Powerships: How the multibillion-rand tender was (legally) rigged

It treated leased powerships as new greenfields investments while permitting minimal local content. Rival bidders for the power tender were eliminated by shifting goalposts. Karpowership SA, the Turkish-led consortium tipped as a preferred bidder for an estimated R225-billion energy deal, was dealt an extraordinary series of aces during the tender process.These trump cards allowed it to emerge as the single largest beneficiary of the government s Risk Mitigation Independent Power Producer Procurement Programme (RMI4P) - and lie at the heart of industry disquiet and the court challenge being mounted by losing bidder DNG Energy. When Mineral Resources and Energy Minister Gwede Mantashe announced preferred bidders in March, three of the eight preferred projects belonged to Karpowership, supplying 1 220 of the 2 000MW on offer. The projects involve five powerships being moored in Coega, Richards Bay and Saldanha.

Powerships: How the tender kneecapped renewables and favoured gas

Karpowership Hundreds of pages of briefing notes reveal bidders in the emergency power programme warned the government rules would favour fossil fuels and leave renewables out in the cold.  Nonsensical rules, they charged, would also result in higher electricity prices for consumers. As they predicted, the cheapest price was R1.46/kWh, more than double the 62c/kWh that Eskom secured in 2018 for solar- and wind-powered IPPs. When the Department of Mineral Resources and Energy launched its urgent tender last August to mitigate loadshedding, it had one claimed goal: get cost-effective power to Eskom as quickly as possible. But when hopeful bidders looked at the rules of the Risk Mitigation Independent Power Producer Procurement Programme (RMI4P), it seemed to many there was another agenda at play: channel the lion s share of the multibillion-rand, 20-year contracts to the budding gas industry.

Powerships: How the tender kneecapped renewables and fa

When the Department of Mineral Resources and Energy launched its urgent tender last August to mitigate load shedding, it had one claimed goal: to get cost-effective power to Eskom as quickly as possible. But when hopeful bidders looked at the rules of the Risk Mitigation Independent Power Producer Procurement Programme (RMI4P), it seemed to many that there was another agenda at play: channel the lion’s share of the multibillion-rand, 20-year contracts to the budding gas industry. “Is it really the department’s intention to ensure that renewables [and] batteries… are excluded from participating in this tender?” one exasperated bidder would ask officials in the months that followed.

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