Page 14 - AfrElec Week 13 2021

AfrElec NEWS IN BRIEF AfrElec

This transmission line marks the first
phase of development, and the company has
issued tenders for the construction of this
infrastructure. Leading candidates are located
in Botswana and South Africa, and Tlou
expects to award the tender early next quarter.
“We have a strong pipeline of project that
are gradually coming to fruition,” Tony said.
Overall, Tlou plans to develop these
projects into reliable suppliers of cost-efficient
and cleaner energy in Botswana.

POLICY
Zambia launches plan to

boost electricity generation
PERFORMANCE
Kenya orders review COAL Zambia has launched an ambitious plan
aimed at boosting electricity generation in
of power purchase Tlou Energy gains the Southern Africa nation. The Integrated
Resource Plan will be implemented during a
agreements 30-year period with the support of the British
government through a grant equivalent to US
Kenya’s President Uhuru Kenyatta has set up environmental approval for $1.78m.
a team to review power purchase agreements Boomslang Project According to Minister of Energy Mathew
signed over the years by the state power Nkhuwa, the plan will be an approach to
distributor, which has been making losses in Tlou Energy’s Boomslang Project has been national power system that incorporates
the recent past. given environmental approval by Botswana’s assessment of available energy resources
Energy consumers in the East African Department of Environmental Affairs (DEA). and opportunities for demand. “This is
nation often complain of high electricity The clean energy company submitted an important in order to meet the country’s
charges, with some of the costs being environmental impact statement to Botswana’s electricity requirement while upholding
attributed to idle capacity charges to DEA which outlined the activities it plans to national development objectives for social
compensate power generators for electricity undertake. equity and environmental sustainability.
generated but ultimately not used. Tlou intends to drill core holes and The implementation of the plan is expected
The review team will carry out its work stratigraphy boreholes, conduct seismic to, among other things, improve long-term
over six months, the president said in a legal and geomagnetic surveys, pilot test pods, reliability, affordability, efficiency, and security
notice seen by Reuters on Wednesday, and no monitoring wells and evaporation ponds and of electricity supply, while keeping pace with
new contracts will be entered into during that install various equipment. the economic growth and development,” he
period. These activities are aimed at unlocking the said.
Kenya Power, the distributor, swung into a potential of the Serowe coal bed methane play. He further added that the implementation
pretax loss of 7.04bn shillings ($64.44mn) for This approval represents a key milestone of the plan will minimise the short-term
its financial year to the end of last June. for the company as it paves the way for it to and long-term economic costs of delivering
Out of the 87.5bn shillings cost of sales expand beyond the current Lesedi project electricity services and ascertain the country’s
incurred during the period, 47.5bn shillings, area. investment needs for the medium and long-
or 54%, was capacity charges paid to power The Boomslang Project sits adjacent to term and provide a conducive environment
producers, officials said. Tlou Energy’s Lesedi Project which is a more for business planning.
Under the typical power purchase mature asset. British High Commissioner to Zambia
agreement, a power producer gets paid for any “It is noted that gas developments Nicholas Woolley said that the plan will go a
electricity produced, even if it is impossible within the highly prospective Mamba and long way in the utilisation of renewable power
for Kenya Power to sell it to consumers due to Boomslang permit areas can be readily tied technologies, operation of smart grids which
excess capacity and other reasons. back to the Lesedi power station and in time will put energy users more in control of their
Kenya Power buys most of its electricity could provide additional revenue generating own energy use. “Innovations in the private
from state-controlled Kenya Electricity opportunities for the company,” Managing sector will bring new options to the market
Generating Company. Director Tony Gilby said. which will go a long way in reducing the cost
It has also contracted numerous Excitingly, the flagship Lesedi Project of developing and operating power systems,”
independent power producers, which is getting closer towards first revenue after he added
normally require power purchase agreements Tlou secured funds to begin constructing a
before securing financing to set up generation 100-kilometre-long transmission line which
plants. will link to the existing electricity grid.

P14 www. NEWSBASE .com Week 13 01•April•2021