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South Africa

Ramokgopa takes a two trillion rand gamble on gas

Legal setbacks, stalled offshore projects and a looming supply crisis threaten both industry and climate targets

The Integrated Resource Plan pushed through cabinet by Minister for Energy and Electricity Kgosientsho Ramokgopa last month is ambitious in scope and financing – envisaging a 2.23 trillion rand (US$129 billion) investment to reshape the country’s mix by 2039. Key to the plan is a massive boost to gas usage as a transition fuel – adding some 16,000 megawatts (16 gigawatts) of gas to power capacity over the next 15 years. That is an eight-fold increase from the around 2 GW of open-cycle gas-turbine (OCGT) capacity state-owned utility Eskom operates today.

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