Page 4 - AfrElec Week 25

AfrElec COMMENTARY AfrElec

Botswana awards

3 IPP licences

Energy & Natural Resource Corporation, Sese Power and Tlou Energy have
all finally gained generation licences, allowing construction to begin

BOTSWANA BOTSWANA has finally pushed forward the The three companies have agreed to build
country’s emerging IPP sector, signing three their own 66-kV transmission lines from the
WHAT: licences with developers looking to exploit the proposed power stations to sub-stations con-
Botswana has awarded country’s coal resources to supply the southern nected to the BPC transmission network.
three IPP licences African market. BERA chief executive officer Rose Seretse
The Botswana Energy Regulatory Author- said it was encouraging to see the three compa-
WHY: ity (BERA) has awarded three IPP licences to nies enter the electricity-producing sector.
The country’s private build a combined 827 MW of generating capac- Seretse appreciated the prospect of Botswana
miners are targeting ity, which will supply both the domestic and becoming an exporter of power. “It has been a
the South African power regional markets. journey to arrive where we are today. But we
market The 15-year licences were awarded to Gab- (BERA) are here to ensure that organisations
orone-based Energy & Natural Resource Cor- such as yours add impetus to the economy of this
WHAT NEXT: poration and Sese Power, which is based in nation. The work that you do is very important,
Botswana aims to end Francistown, and AIM-listed Tlou Energy. because electricity is very essential,” she said.
power imports, but Energy & Natural Resource Corporation has BERA chief operations officer Duncan
doubts remain about its been granted authority to construct a 600-MW Morotsi explained that the three companies were
grid infrastructure coal-fired power station north of Morupule Col- the first IPPs in Botswana to be licensed to gen-
liery in the Central District. erate electricity.
The Botswana Daily News that the company Morotsi said: “These are big projects and we
was expected to export the generated electricity believe that you will succeed. We don’t only want
to the Southern African Power Pool, ZESA and you to produce for Botswana; we also want you
Eskom. to export to make this one of the revenue-earn-
Sese Power will construct a 225-MW coal- ing industries for Botswana,” he said.
fired power station east of Makomoto village, Gabaake Gabaake of Tlou Energy expressed
near Tonota, and is anticipated to export elec- gratitude for the guidance and facilitation BERA
tricity to mining companies in Zambia. gave the companies during the process of apply-
ing for the licences. He said the development was
Tlou Energy a significant milestone for the energy sector in
Lastly, Tlou Energy will generate an initial 2 MW this country.
of coal-bed methane (CBM) and solar power at The country’s power demand currently
the Lesedi project to Botswana Power Corpora- stands at 550 MW. In theory, the Chinese-built
tion (BPC) at a tariff already approved by BPC. Morupule B power plant can generate 450 MW,
Tlou Energy managing director, Tony Gilby but it has only been operating at up to 33% of
said the licence demonstrates that progress is capacity, meaning that the country has to import
being made with the Lesedi power project. power from South Africa.
“Tlou is currently developing projects using Although exploiting CBM and developing
gas, and plans to combine this with solar power a gas-to-power industry would reduce these
to provide a cleaner baseload power source,” imports, there are concerns that Botswana’s
Gilby said. potential is just too small at up to 100 MW,
Recently the energy company entered into an meaning that the country will struggle to gain
agreement with BPC to pilot the 2 MW of CBM access to the cutting-edge technology required.
located in the central district of the country. As well as CBM, the country is investing in
The company has also launched a partial solar farms and an extension to the Moropule
entitlement offer to raise BWP24mn ($2.03mn) B power plant in a bid to become self-sufficient
to fund engineering and design of a proposed in electricity. The government plans to channel
66-kV transmission line, due diligence costs $1.8bn of investment into the power sector to
related to development funding field operations meet up to 500 MW of forecast new demand by
and for the Lesedi project. 2030. ™

P4 www. NEWSBASE .com Week 25 25•June•2020