The South African government’s ambitious power supply deal with Karpowership, a subsidiary of Turkey’s Karadeniz Energy Group, is officially over, according to Electricity Minister Kgosientsho Ramokgopa.
During a recent briefing, Ramokgopa confirmed the project is “dead in the water,” signalling an end to hopes that Karpowership would help alleviate the country’s electricity shortages.
Karpowership secured a contract three years ago to provide 1.2 gigawatts (GW) of electricity to South Africa over two decades.
The deal, originally valued at about $11.4 billion USD, was expected to provide much-needed relief for South Africa’s strained energy grid.
However, the project faced numerous delays and financial challenges, which culminated in the loss of its right to transmission capacity in January 2024.
Eskom, the national power utility, withdrew this capacity after the company failed to finalize the necessary financial arrangements.
Ramokgopa’s statement—“It’s behind us”—suggests that the government has closed the chapter on Karpowership’s involvement in the country’s energy plans.
The failed deal highlights ongoing struggles in securing stable energy solutions, as South Africa continues to experience frequent power outages and rolling blackouts.
With Karpowership’s departure, South Africa remains in urgent need of long-term, reliable energy partnerships to address its power crisis.
