Environment Minister also declares Karpowership deal ‘dead’

Minister of Electricity and Energy Dr Kgosientsho Ramokgopa. (Photo: Gallo Images / Rapport / Deon Raath)

15 Oct 2024

A second cabinet minister has driven another nail into the coffin of the controversial Karpowership electricity deal, declaring that: ‘For all intents and purposes, Karpowership is dead’.

Responding to questions from Daily Maverick at a media briefing in Cape Town on 15 October 2024, national Forestry, Fisheries and Environment Minister Dion George echoed comments made a day earlier by Electricity Minister Kgosientsho Ramokgopa, who stated: “The Karpowership projects are dead in the water. The projects did not meet the deadline dates. The projects are buried and behind us.”

Nevertheless, George issued a 187-page environmental appeal ruling in favour of Karpowership on 17 July, a decision that seemingly re-opened the door for the Turkish company to proceed with the Richards Bay harbour “emergency” power plan, from an environmental perspective.

environment minister dion george karpowership Minister of Forestry, Fisheries and Environment Dion George. (Photo: Gallo Images / Misha Jordaan)

In his opening remarks at the media briefing this week, George said that as part of his efforts to ensure regulatory efficiency in his department, he had prioritised the finalisation of all pending appeals.

“In my first 100 days, I have considered 65 appeals, ensuring that outstanding matters are addressed promptly and fairly.”

We asked George to clarify his reasons for ruling in favour of Karpowership on appeal, when Ramokgopa had indicated twice this year that the Turkish power deal was off the table.

Read more: New Environment Minister Dion George throws potential lifeline to sinking Karpowership deal

Responding, George said: “On the Karpowership matter I think I have already explained, to a degree. But let me do that again. My job as the appeals authority is to consider the appeals that are brought to me.

“The (appeal) process may not be final yet, so I won’t go into too much detail. But, what I did was to have a look at the (Karpowership Richards Bay) appeal and then I made a decision. And what is very clear, as Minister Ramokgopa said yesterday, is that the Karpowership deal is dead … It is not going to go anywhere. The timelines have run out etc, so Minister Ramokgopa has been crystal clear on that.”

However, George noted that a second appeal by Karpowership regarding the Saldanha Bay environmental authorisation had also come before him for decision.

“I have made a decision on it but it is not yet public because it is not yet final. That is a process that is currently happening. But as I have said before, the Karpowership deal is for all intents and purposes dead.”

Environmental groups still vigilant

Despite these assurances from both ministers, however, the social and environmental justice group Green Connection has called for further clarity from the government on whether the floating powerships plan is “truly off the table”.

karpowership Ramokgopa Minister of Electricity and Energy Dr Kgosientsho Ramokgopa. (Photo: Gallo Images / Rapport / Deon Raath)

Green Connection executive Liziwe McDaid welcomed Ramokgopa’s assurances, noting that signing the proposed 20-year “emergency” contract would have resulted in even higher electricity prices than those currently proposed by Eskom.

“However, while we are pleased the deal is off, there are serious questions that remain. Why, if the Karpowership deal is truly off the table, is the government still opposing The Green Connection and Outa’s court cases? Why are scarce state resources still being wasted on this?”

“In the interest of transparency, The Green Connection insists that government must take accountability and publicly address these pressing questions.”

(Outa mounted high court legal action in 2022 challenging the Nersa generation licence issued to Karpowership, followed by a similar court application by the Green Connection relating to whether Nersa’s records should be treated as confidential).

McDaid said her organisation would remain “vigilant” until such time as the original Nersa generation licence and all environmental authorisations granted to Karpowership were formally cancelled or withdrawn.

“I think that would be the proof of the pudding. It would also be great to see a formal statement from Karpowership confirming that they are leaving… There doesn’t seem to be anything stopping them from returning in some other guise in future, possibly with a shorter five-year contract.”

The Centre for Environmental Rights (CER) law clinic in Cape Town has also called for further reassurances from the government.

“Whilst we are pleased that both Minister George and Minister Ramogkopa have stated that the Karpowership proposal may no longer go ahead, it is still a major concern that the environmental authorisation and appeal are still alive and that formal withdrawal of the preferred bidder status has not taken place.

“Both ministers should ensure that measures are taken to ensure that legally, Karpowership is no more,” said CER attorney Michelle Koyama.

For its part, Karpowership has twice not responded to written questions from Daily Maverick on whether it has walked away entirely from the South African power project – or not. DM

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Environmental groups still vigilant