South Africa invited independent power producers to supplement electricity supplies (source: Eskom)
South Africa’s emergency procurement energy project has dropped to four the potential FSRU-based LNG projects from the list of 11 bidders
In a bid to address energy challenges in South Africa, the Department of Minerals and Energy Resources launched the Risk Mitigation Independent Power Producer Procurement Programme (RMIPPPP) in 2020, with gas-to-power via FSRUs the lead contenders.
However, several gas-to-power projects, aimed at providing additional generation capacity to alleviate load shedding, have suffered delays and are at risk of being cancelled as their budget quotes expired 31 December 2023.
Coega Powership: located in Eastern Cape, the Coega Powership project boasts a capacity of 450 MW. However, the project’s failure to reach commercial close within the approved timeline and budget may result in its cancellation.
Mulilo Coega Gas: another gas-to-power project in Eastern Cape, the Mulilo Coega Gas facility has a capacity of 200 MW. Like Coega Powership, this project is also at risk of cancellation due to the inability to secure commercial close before the 31 December 2023 deadline.
Saldanha Powership: situated in Western Cape, the Saldanha Powership project aims to provide a gas-to-power solution with a capacity of 320 MW. However, delays in the project’s progression may lead to its removal from the RMIPPPP.
Richards Bay Powership: a gas-to-power project located in KwaZulu-Natal, the Richards Bay Powership poses a capacity of 450 MW. Like its counterparts, the project’s failure to meet commercial close requirements may impede its inclusion in the RMIPPPP.
These gas-to-power projects collectively add up to a significant dispatchable capacity of 1,400 MW. However, with the impending cancellation of these projects, the grid connection capacity provisionally reserved for them will be reallocated to other projects that are ready to generate much-needed electricity for South Africa, in line with the Interim Grid Capacity Allocation Rules.
As the deadlines near and the energy landscape hangs in the balance, stakeholders eagerly await possible solutions to rescue these gas-to-power projects and maintain a reliable and sustainable energy supply for South Africa.
