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Stalled power projects for 1 850 MW risk losing grid access by month end | Business

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Companies yet to complete financing arrangements to build 1 850 megawatts of power-generation capacity in South Africa in terms of a government tender in 2021 may lose the right to connect to the national grid at the end of this month.

The access for projects by Karpowership, Acwa Power Co. and others relating to contracts for 2 000 megawatts awarded more than two years ago expires on 31 July.

The emergency-power programme has been beset by delays. Karpowership, the provider of gas-fired plants mounted on ships that won about 60% of the tender, has seen its plans thwarted by lawsuits and environmental challenges. A surge in construction costs globally has also complicated attempts by the bid winners to make financial arrangements.

Eskom is in talks with the Independent Power Producer Office, which ran the tender, to decide on whether to extend the access, the company said.

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