Energy Department says 20-year contracts for floating powers

Energy Department says 20-year contracts for floating powerships will keep prices down


Picture: KARPOWERSHIP
The Department of Mineral Resources and Energy has defended using 20-year power purchase agreements in a programme aimed at quickly easing the country's electricity supply constraints, saying they will keep costs down. 
Energy analysts have questioned the length of the agreements, in particular with regards to Turkish company Karpowership, which has bid to moor five powerships and three gas ships at three SA harbours for two decades. 
A top departmental official likened the 20-year agreements to paying off a bond, saying the projects would be unaffordable if the contact lengths were shorter.  
Top officials from the Department of Mineral Resources and Energy have sought to defend the 20-year power purchase agreements SA is offering companies to quickly ease electricity supply constraints – including a group that supplies floating powerships.

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