TLOU ENERGY COMMITTED TO SUPPLY CLEAN ENERGY IN BOTSWANA
Tlou Energy signed a great milestone Power Purchase Agreement ( PPA) with Botswana Power Corporation ( BPC) to supply the national power grid with 10 MW coal bed methane ( CBM) generated power. The PPA is for duration of five years, and it defines all the commercial terms for the sale of electricity between the parties.
Signing the agreement, Botswana Chief Executive Officer, David Kgoboko said what is even more exciting about this Project is that it will reduce the dispatch of our diesel power stations and offset purchase of emergency power imports, which come at an exorbitant rate per kwH. “The CBM Plant will provide an appropriate energy mix and also improve security of supply of energy in Botswana.” He said the occasion marks yet another milestone for the country towards commercialisation of renewable energy resources, diversification of the energy mix and self- sufficiency in power generation. We continue to support Government efforts to reform and liberalise the Electricity Supply Industry. “These efforts are already transforming the industry, with the advent of IPPs such as TLOU Energy and others to come in the near future. This will inevitably improve customer experience and result in affordable power. We look forward to a fruitful relationship with Tlou Energy”.
Tlou Energy is currently in negotiations with potential financiers for further development of the Lesedi Power Plant which will supply BPC with 10MW. The Company had issued tenders for the construction of the transmission line and substations and post quarter end tenders were awarded to local company, Zismo Engineering ( Pty) Ltd ( Zismo) for the construction of the overhead lines and to OptiPower for construction of substations at Lesedi and Serowe. Tlou is developing sources of clean energy in Botswana Strategic location in Botswana’s Central District. The company is committed to produce cleaner energy to displace coal and diesel power Gas and solar power solutions. Minister of Mineral Resources, Green Technology and Energy Security, Lefoko Moagi said government has developed an Integrated Resource Plan ( IRP) for electricity generation, which will meet the country’s electricity demand from the generation facilities with surplus capacity for export once fully implemented, while ensuring environmental sustainability through the use of renewable sources of energy.
He said the IRP proposes optimal energy projects which need to be realised in the next two to seven years in order to meet the growing energy demand at least cost and reduce the electricity demand- supply mismatch and also reduce the country’s carbon foot print, of which this project is part of. The IRP was approved by Cabinet in September 2020 and subsequently launched in December 2020.
“Should this project reach a successful commercial operation, Botswana will be self- sufficient on gas supply industry, which will not only be for electricity generation but also for domestic and industrial usage. This will contribute to diversification of economy from diamonds, creation of green jobs and subsequently grow the economy as well as improve the livelihood of the populace” Permanet Secretary for the Ministry of Mineral Resources, Green Technology and Energy Security, Ellen Richard- Madisa said the energy sector continues to face challenges with regard to reliable supplies of energy, in particular electricity. She explained that In view of the challenges that have over the years faced CBM PL holders in terms of obtaining certification as well as extracting CBM, the Government has decided to allow CBM PL Holders to develop CBM fuelled power plants aggregating to not more than 100MW as a Pilot Project. “The success of this Pilot Project will provide a basis for commercialisation of the Gas Industry in Botswana.”