South Africa's environmental authorities rejected an application by Karpowership to generate electricity at three of the nation's ports.
The Department of Forestry, Fisheries and the Environment blocked the request "after due consideration of all relevant information presented as part of the environmental-impact assessment process", it said Thursday in a statement.
The Turkish company applied for projects at the Richards Bay, Ngqura and Saldanha harbours.
South Africa's government in March picked Karpowership as a preferred bidder to supply 1 220 MW of electricity to offset a shortage.
Eskom, the state-owned power company and a near monopoly, has subjected the country to intermittent outages for more than a decade, partly because of poor maintenance at its plants.
Karpowership maintained that it has met all necessary requirements and will appeal the Environment Department's decision. The department "allowed a misinformation campaign, funded by special interests, to derail the Department of Mineral Resources and Energy's strategic plan", the company said in a statement.
The proposed Karpowership projects have drawn controversy since the award was announced. Environmental groups filed complaints about the company's plans, while losing bidder DNG Energy brought a court application that threatens the programme.
Any appeal against the decision should be submitted to the appropriate administrator, the department said.