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| 19 July, 2018

Coming for support in the peak season: 3rd Powership officially sets anchor in JIEH

Esra Sultan to supply 235 MWs of free power for 3 peak months

Coming for support in the peak season: 3rd Powership officially sets anchor in JIEH

Beirut, Lebanon - In a goodwill gesture, Karpowership will provide 3 months of free electricity of 235 MWs. Karpowership, the leading provider of innovative power production solutions, officially announces that Esra Sultan sets anchor temporarily in Jieh south of Beirut on Wednesday July 18th after all docking and connection infrastructure were made ready. Also, Karpowership will continue to provide electricity to Lebanon for 3 additional years with a reduced tariff, preserving its position as one of the cheapest electricity sources in the country.

As per the Council of Ministers’ decision number 84, dated May 21, 2018 the Karpowership contract has been extended. For this process, Karpowership proposed three different offers with various prices and conditions. 1) A 1-year offer with 5.60 cents per kWh, 2) A 3-year offer with 4.90 cents per kWh (with an early termination option) and 3) A 20-year BOT offer (Build – Operate – Transfer) with an incredibly low price per kWh.

The Council of Ministers approved an extension of 1-year or 3-years, where EDL and the Ministry of Energy and Water has agreed to 3-years with early termination at a very attractive rate, for the 2 Powerships located in Zouk and Jieh (total 370 MW). As a result of this additional discount, Karpowership maintained and further improved its position as one of the cheapest and the most reliable sources of electricity in Lebanon. Karpowership’s cost of electricity is lower than all existing generations in the country, as well as imports from Syria. All Powerships are capable of operating with Natural Gas for further cost reductions and further improving the environmental impact. Moreover, in order to express gratitude and to honor the long-lasting relationship between Karpowership and Lebanon, the company offered a 200+ MW Powership free of charge to EDL during the summer peak period.

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According to the agreement between EDL and Karpowership, the 3rd Powership will not only increase the supply of electricity in Lebanon’s national grid by 2 hours, but it will also create savings of more than $30 million in fuel in EDL Jieh power plant for the duration of the 3 months. Both the extension of the existing contract, and the additional Powership, will financially and technically support EDL.

The new and free of charge Powership will increase Lebanon’s electricity generation capacity during the summer peak period, renown for having the highest electricity demand in Lebanon. The third Powership will increase the 370 MW generation by an additional 200 MW.

Set to provide around additional 235 MW, the new Powership will support the efforts of Fatmagül Sultan and Orhan Bey, which have been operating in Lebanon since 2013. While all necessary works are underway to connect Esra Sultan, it is expected to start delivering electricity to the Lebanese grid within few days after its docking.

The additional free capacity provided by Esra Sultan over the existing 370 MW, will lead to an additional 200 MW power generation, enabling EDL to supply additional hours to the Lebanese people. It is worth noting that the Powerships are technically proven to be one of the cheapest and most reliable electricity sources in the country. The state of the art Powerships operate with the highest standards due to their compliance with ISO 9001 Quality, ISO 14001 Environmental, OHSAS 18001 Occupational Health and Safety and IFC:2008 Performance Standards, therefore significantly improving environmental impacts especially in comparison to currently operating old Jieh and Zouk power plants.

About Karpowership

Karpowership is a member of Karadeniz Energy Group, Istanbul, Turkey. It is the only owner, operator and builder of the first Powership (floating power plant) fleet in the world. Since 2010, 15 Powerships have been completed with total installed capacity exceeding 2,800 MW. Additional 5,000 MW of Powerships are either under construction or in the pipeline. Karpowership has been supplying 25% of Lebanon’s total electricity generation through its two Powerships Orhan Bey and Fatmagül Sultan mooring off the Lebanese coast since 2013. Karpowership has also operations in Indonesia, Ghana, Mozambique, Sierra Leone, Gambia and Sudan.

© Press Release 2018

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