Power company among private producers bidding to help Eskom solve electricity shortage

South Africa’s program to reduce shortages of up to 3,000 megawatts of electricity generation has attracted the interest of solar, gas and ship developers.

Richards Bay Gas Power 2, Scatec Solar SA and Karpowership SA are among the companies list as bidders for the Risk Mitigation Independent Energy Producers Procurement Program on the website of the Independent Energy Producers office.

The electric power company in the continent’s most industrialized nation, Eskom Holdings SOC Ltd., has a poorly maintained generation fleet struggling to keep up with demand, resulting in electricity rationing that has hit the economy .

The emergency program, designed to get projects online in the shortest time possible, is part of a government effort to strengthen the network.

The list of 28 bidders on December 22 includes the project number, name and company.

South Africa earlier this year revoked an environmental exemption granted to Karpowership because the company that generates electricity from vessels moored offshore did not fully disclose the reasons for the request.

While the program seeks 2,000 megawatts of capacity from a variety of power sources, a shortfall indicated by South Africa’s national energy plan, Eskom said the gap had grown to at least 3,000 megawatts, the Department of Mineral Resources and Energy said in a request for information last year.

The program expects to announce the preferred bidders by February 2021 and the financial closing of the projects by June. He anticipates that the projects will be operational in June 2022.

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