Powership electricity costs R5 per kWh - Outa launches legal challenge against Karpowership licences

[quovadis]

Foreign companies are willing to park ships offshore for business. Why not just tender out contracts to build and operate coal or other power stations generating a guaranteed 'x' for a compensation of 'y' subject to regulation and eskom exclusivity? No capital outlay, regulatory oversight and Eskom gets to play power provider to the nation?

 

[TPM]

ALL CONTRACTS MUST BE TRANSPARENT and audited by a team chosen by the public.
It's the People's money.
RENEWABLE ENERGY IS THE ANSWER.
Conduct a FORENSIC INVESTIGATION.
Is anyone getting KICKBACKS?

 

[quovadis]

ALL CONTRACTS MUST BE TRANSPARENT and audited by a team chosen by the public.
It's the People's money.
RENEWABLE ENERGY IS THE ANSWER.
Conduct a FORENSIC INVESTIGATION.
Is anyone getting KICKBACKS?

Government, government regulators, government minister, state enterprises, auditor general... all public essentially.

 

[RedViking]

I mean, R5 per kWh is not that far removed from what some people are paying for Eskom nowadays

Is that before or after it reached the consumer going through all the middle men.

 

[RudderVator]

I mean, R5 per kWh is not that far removed from what some people are paying for Eskom nowadays

The Eskom cost is R5 kWh what do you think greedy municipalities are going to do? More like R7 kWh.

 

[PhireSide]

What I was actually implying was that Eskom is already so expensive, that we are probably among the priciest of the developing world.

We will probably end up paying R10 per kWh for the KPS deal if it happens, and they will work that into the base price so we will all probably see an(other) increase if that were to transpire.

 

[Herr der Verboten]

Powerships will cause massive electricity price hike in South Africa — Outa challenges Karpowership licences

The Organisation Undoing Tax Abuse (Outa) has launched a legal challenge to overturn the National Energy Regulator of South Africa's (Nersa's) decision to award power generation licences to Karpowership.

The action comes after Nersa announced it had approved three generating licences for the Turkish power ship company in September 2021.

Will it actually go places this time or will it be another sanral and tollgate ****up?

 

[itareanlnotani]

Well depends how you look at it. If burning diesel is 5-6 times more expensive per kwh than a powership there definitely is a gap to fill.

Burning diesel is in the R2.8-3.7 range unblended from last I looked at Eskom's financials.
This is from 2020, I'd guesstimate we'd be up from there at least another 20-30% circa 2022.

Still under R5/kWhr though.

 

[requiem]

I mean, R5 per kWh is not that far removed from what some people are paying for Eskom nowadays

It will be closer to R9 a kWh once the required markups and VAT are added by the municipalities

 

[Corelli]

So R10 for the middle class to cover because well no one else has to pay

 

[Oldfut]

Foreign companies are willing to park ships offshore for business. Why not just tender out contracts to build and operate coal or other power stations generating a guaranteed 'x' for a compensation of 'y' subject to regulation and eskom exclusivity? No capital outlay, regulatory oversight and Eskom gets to play power provider to the nation?

Even better sell the existing generation units (and let anyone build anything that meets regulations) to private companies; free, fair and open; no ANC BEE thievery. Only rules - comply with all existing regulations regarding the environment etc, no monopoly and the grid is available to all at set wheeling charges. Then let the private entities tender to provide power to companies and cities. Snag for ANC, little room for graft; so rather screw SA.

 

[quovadis]

Even better sell the existing generation units (and let anyone build anything that meets regulations) to private companies; free, fair and open; no ANC BEE thievery. Only rules - comply with all existing regulations regarding the environment etc, no monopoly and the grid is available to all at set wheeling charges. Then let the private entities tender to provide power to companies and cities. Snag for ANC, little room for graft; so rather screw SA.

The problem is the amount of opposition to privatisation. There is middle ground here which meets the interest of both those in power and the public at least for the short term. The entire fleet of Eskom is aging to the extent that it's probably cheaper to build new, more environmentally conscious and more efficient power stations than retrofitting old, soon-to-be-decommissioned stations with a multitude of incumbent and competing interests creating friction. Once there are a multitude of different energy producers there could be an introduction of distribution companies who could then compete with Eskom and various city's own distribution companies similar to how the telecommunications industry has evolved with Fibre connectivity.

 

[ronvickers]

Powerships will cause massive electricity price hike in South Africa — Outa challenges Karpowership licences

The Organisation Undoing Tax Abuse (Outa) has launched a legal challenge to overturn the National Energy Regulator of South Africa's (Nersa's) decision to award power generation licences to Karpowership.

The action comes after Nersa announced it had approved three generating licences for the Turkish power ship company in September 2021.

Ask Greed Mantashe what benefit he and others will get from this expensive suspicious system>

 

[grok]

Cool, the higher the Eskom/muni price the more it'll start making sense for suburbs/estates/villiages etc to come together & generate their own 'lectricity..

Also makes running a gennie super cheap in comparison all of a sudden.

Does Eskom think they're the only entity that can burn diesel? LOL!

 

[SeRpEnT]

Cool, the higher the Eskom/muni price the more it'll start making sense for suburbs/estates/villiages etc to come together & generate their own 'lectricity..

Also makes running a gennie super cheap in comparison all of a sudden.

Does Eskom think they're the only entity that can burn diesel? LOL!

You wish... they will find a way to get their $$$.
Incoming tax on diesel generators.... no... Even more money up for grabs for them: A monthly levy for every household with a generator. Call it the green bill ...blahblahblah about diesel burning being bad for environment....

 

[RoryTalmage]

All SOE & Muncipality used Buildings - including Police Stations; Correctional Services; Schools; Hospitals etc should have Solar/Wind Power installed for their Electricity use with battery backup for night users & backup systems!!
Relief to Eskom would be enormous.
This option would cost far less than Power Ships!!

 

[neoprema]

i was looking forward to those ships, such an interesting idea. guess we won't see em now.

 

[Iwojima]

Powerships will cause massive electricity price hike in South Africa — Outa challenges Karpowership licences

The Organisation Undoing Tax Abuse (Outa) has launched a legal challenge to overturn the National Energy Regulator of South Africa's (Nersa's) decision to award power generation licences to Karpowership.

The action comes after Nersa announced it had approved three generating licences for the Turkish power ship company in September 2021.

How are they going to cause MASSIVE price hikes when they will only be generating, last I checked, less than 5% of the total demand?

Don't get me wrong. The entire deal is rooted in absolutely indefensible corruption. However let us say it does have a negligible impact on pricing, but allows us to escape load shedding more frequently. Is that perhaps not a desirable outcome?

 

[Gordon_R]

How are they going to cause MASSIVE price hikes when they will only be generating, last I checked, less than 5% of the total demand?

Don't get me wrong. The entire deal is rooted in absolutely indefensible corruption. However let us say it does have a negligible impact on pricing, but allows us to escape load shedding more frequently, is that perhaps not a desirable outcome?

You are missing the fact that the contract guarantees that powership production is not optional, a mandatory minimum cost is stated, which would be multiple times the existing coal-fired plants. It's almost as if we were to burn OCGT diesel 18 hours a day, 365 days a year.

Look at it another way: Currently we buy 19 bananas at 5c each. The 20th banana would be 95c. Effectively the cost of bananas doubles, even though only 5% of them are imported

 

[Iwojima]

You are missing the fact that the contract guarantees that powership production is not optional, a mandatory minimum cost is stated, which would be multiple times the existing coal-fired plants. It's almost as if we were to burn OCGT diesel 18 hours a day, 365 days a year.

Look at it another way: Currently we buy 19 bananas at 5c each. The 20th banana would be 95c. Effectively the cost of bananas doubles, even though only 5% of them are imported

We aren't talking about a 19x fold increase for our last banana though. 3x seems more likely. Making the effective cost of bananas +10%.