Karpowership, a unit of Turkey’s Karadeniz Energy Group, recently signed a 20-year contract to provide electricity to South Africa’s national grid. The R218-billion contract, anticipated to cost South Africa R10.9-billion annually, will ensure the provision of reliable and consistent electricity, vital for curbing electricity deficits and enabling an energy transition.
The agreement is considered Karpowership’s longest contract to date and comprises the supply of generated electricity from ship-to-shore, fueled by liquified natural gas. The three powerships will anchor at three coastal towns in South Africa and use a power line that links the ship and a transmission tower and is integrated with the national grid.
Karpowership is currently the only built, owned and operated powership fleet in the world, in which three of the company’s projects have been identified as preferred bidders in South Africa’s Risk Mitigation Independent Power Producer Procurement Program. By utilizing ship-to-shore electricity transmission, South Africa is not only facilitating a transition towards cleaner and more sustainable energy sources, but also addressing critical electricity supply shortages throughout the country.