Karpowership, one of the world’s largest operators of floating power plants, is in talks to provide up to 400 megawatts of electricity to Ukraine via Moldova and Romania, a senior executive said Wednesday.
Relentless Russian strikes targeting the energy infrastructure across Ukraine have left millions in the dark with no heat. Authorities have said millions could face power cuts at least until the end of March due to the missile attacks, which Ukraine's national grid operator Ukrenergo said had wreaked "colossal" damage.
Part of Türkiye-based conglomerate Karadeniz Holding, Karpowership currently has 6,000 megawatts of installed capacity thanks to its fleet of 36 power ships, with capacities ranging from 30 megawatts to about 500 megawatts.
The company’s operations mostly focus on Africa, Asia and Latin America; however, the energy crisis in Europe and the war in Ukraine have now seen the company shift its focus to Europe, with talks currently ongoing to provide power to Ukraine.
"We are now in talks with Ukraine, including the United Nations and some other aid institutions, to provide about 300 or 400 megawatts of electricity with power ships, while trying to find the best solution as to how and where to deploy the power ships," Zeynep Harezi, the chief commercial officer of Karpowership, told Anadolu Agency (AA).
Given the security concerns and the fact that assets directly destined for Ukraine are uninsurable, it was eventually agreed that it would be preferable to deploy the power ships in ports in Moldova and Romania, from which electricity would then be transferred via transmission lines to Ukraine.
Harezi said it is technically possible for three or four power ships deployed in various ports in Moldova and Romania to provide the capacity required for Ukraine at competitive prices.
"Our electricity prices are cheaper than electricity generation costs in Europe. We are trying to make it possible to provide electricity to Ukraine given the humanitarian aspect," she noted.
She disclosed that the U.N. has been informed of the plan for coordination purposes.
Russia’s attacks on Ukraine, particularly in recent weeks, have primarily targeted energy infrastructure, rendering people without power.
Harezi said that once the technical aspects of the plan are concluded, a power capacity of 300 megawatts could cover the electricity needs of up to 1 million homes in Ukraine in a month.
"Ukraine needs every kilowatt-hour of electricity now. The only challenge of sending electricity to Ukraine through Moldova and Romania could be bureaucratic and political," she said.
Many seek power ships for next winter
Harezi confirmed that negotiations are also taking place with Italy, Germany, France and the United Kingdom for the provision of 2,000 megawatts of power for next winter, which she said "is a more critical period for energy security."
"We expect the negotiations to conclude in June or July 2023," Harezi said.
Europe is expected to get through this winter without incident, thanks to a milder winter, full storage facilities and lower demand. However, with less Russian gas available to fill storage facilities next winter, supply security will become a more pressing concern for the continent.
According to International Energy Agency (IEA) head Fatih Birol, Europe could face a bigger energy crisis next winter as Russian gas supplies to Europe may completely end next year, while China’s liquefied natural gas (LNG) demand is expected to increase as the country recovers from the pandemic.
65% capacity planned increase
Karpowership currently operates in Africa and Asia and its operations are expanding in Latin America, Harezi said.
In Brazil, several power ships with a combined capacity of 560 megawatts have recently come online, and the company provides 600 megawatts to Cuba.
The company has also made inroads in the Dominican Republic for 200 megawatts, and plans are afoot to double this capacity.
In South Africa, Harezi noted that 1,200 megawatts of power ships are set to come online by the beginning of 2024.
She stated that the company’s operations are now expanding further afield, with talks underway with Singapore and even California. This would increase the company’s installed capacity from 6,000 to 10,000 megawatts in five years, corresponding to an increase of about 65% in installed capacity with more power ships.