TLOU ENERGY SIGNS TRANSMISSION LINE CONTRACT
Tlou Energy, the emerging energy producer, has finally signed an agreement with Zismo, for the construction of transmission lines that will connect its Lesedi power project to Botswana Power Corporation electricity grid.
Lesedi project is located 100 km away from the national power grid. Zismo, the Botswanabased electrical and contracting company, is expected to start work in the coming weeks. The project will take 15 months to complete. “Commencement of transmission line construction represents a new and exciting phase for the Company aimed at delivering on our huge gas to power potential and starting the monetisation process for our considerable gas reserves. We very much look forward to working with Zismo on transmission line construction and achieving first revenue,” said Tlou Energy Managing Director, Anthony Gilby.
“It has taken a long time but what has been achieved to this point is outstanding. We are extremely grateful to our stakeholders and investors for staying the course.”
Tlou Energy has signed a 10 MW Power Purchase Agreement (PPA) with the Botswana Power Corporation (BPC) under which BPC will purchase up to 10 MW of power generated at the company’s Lesedi power project. The PPA is for an initial five-year term and will help Tlou Energy in reaching the financial close for Phase 1 of the project, expected to cost $10 million (about 100 million).
In addition to the overhead lines, substations will be installed at Lesedi and Serowe, said
the company which is listed on Botswana Stock Exchange. The Lesedi substation will integrate the generation assets with the transmission line and the Serowe substation will tie in with Botswana Power Corporation’s existing infrastructure. This work will be completed by OptiPower, a division of Murray & Roberts Ltd. The substation contract is due to be signed later, with completion scheduled to tie in with completion of the overhead lines.