Contracts of bidders to assist with SA’s electricity challenges to run for over 20 years

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Minerals and Energy Department has provided more details on the eight preferred bidders, earmarked to assist South Africa with its electricity supply challenges. The department briefed Parliament’s Portfolio Committee on Tuesday morning.

Government is looking at a new energy mix sourced mainly from renewable energy and Independent Power Producers.

Government efforts to improve the energy sector:

Of the 28 bid responses received, eight were selected as preferred bidders.

The contracts will run for a period of over 20 years.

Minister Mantashe briefs media on the Independent Power Producers:

Turkish owned Karpowership is one of the preferred bidders. Its model offers ship-to-shore electricity delivery, with its floating power plants.

Karpowership currently supplies electricity to Gambia, Ghana, Mozambique and Lebanon.

This deal is believed to be worth R218 billion.

The department says that without long-term power purchase agreements, the price of Independent Power Producers would be higher.

The office of IPPs addressed concerns about government involvement. Head of the Independent Power Producers, Bernard Magoro, says the process of selecting bidders was fair.

On concerns about government’s influence in the bidding process, Magoro says the state’s role only comes in where the IPP office has to ensure that the supply chain management process is above board.