×

We've got news for you.

Register on SowetanLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now

Court dismisses appeal against 2,000MW emergency power tender

The high court has dismissed an application against a state emergency power tender that aims to end years of power shortages.
The high court has dismissed an application against a state emergency power tender that aims to end years of power shortages.
Image: 123RF/STOCKSTUDIO44/ File photo

The high court has dismissed an application against a state emergency power tender that aims to end years of debilitating electricity shortages, the government said on Monday.

Alleging interference by senior energy officials that tainted the process to procure 2,000 megawatts (MW), electricity firm DNG Energy sought to overturn a March 2021 decision picking several preferred bidders, including Turkey's Karpowership.

“The court decision enables the government and (power utility) Eskom to finalise its governance and regulatory approval processes to conclude financial close with ... preferred bidders by end-March 2022,” an energy ministry statement said, welcoming the decision.

Besides Karpowership, which operates a fleet of powerships and will provide ship-to-shore electricity when eventually anchored at three coastal sites, Saudi Arabia's ACWA Power and other firms such as Oya Energy and Umoyilanga Energy were also shortlisted.

The ministry said it expected that selected projects will be operational and ready to augment generation capacity a year after financial closure. The government expects the projects to inject about R45 billion into SA's economy.

However, the CEO of DNG Energy said the company had reviewed the high court judgment and considered there to be ample grounds for an appeal.

“We will definitely be appealing it,” Aldworth Mbalati told Reuters.

The tender for 2,000MW, launched three years ago when SA suffered some of the worst power cuts in a decade, aimed to find the cheapest and quickest options to ease a shortage that has cost the continent's most industrialised economy billions of dollars.

Any further delays would prolong SA's energy woes, with economic growth constrained by a lack of electricity as power utility Eskom is forced to cut electricity in rolling blackouts to prevent the national power grid from collapsing.

Would you like to comment on this article or view other readers' comments? Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.