Tlou Energy projects get thumbs up

power deficits,” said the report adding that Tlou’s hybrid gas and solar PV project provides supply security and reduced carbon emissions.

K1 Capital research indicates that electricity demand is expected to increase to between 1184 and 1359 MW by 2030, met by 649 MW of local generation and still requiring 525- 710 MW of imports.

The researchers highlighted that government hopes that 30 percent of generation by 2030 will come from renewable building a positive case for Tlou Energy’s proposed energy projects.

Currently, the natural gas consumption in the country is at zero, though government has planned several gasto- power projects based on the development of CBM resources.

Some of the natural gas projects in the pipeline include, Tlou’s Lesedi 10 MW project, with potential later expansion to 50 MW and Kalahari Energy’s Mmashoro project initially scoped at 180 MW but later reduced to 100 MW.

On renewable, the research indicates that Botswana has significant solar potential, with 3,200 hours of sunshine per year and average global irradiation of 21 MJ/ m2 / day, one of the highest levels in the world.

“The government has expressed interest in establishing a 100 MW PV solar plant and or a 100 MW Concentrated Solar Thermal Plant ( CSTP). Low average wind speeds of 2.0 to 3.5 m/ s are not attractive for large- scale wind power development, and low and uneven rainfall indicates hydro power is not a viable option. This means that solar power will need to be backed by gas generation or large- scale battery storage to provide supply continuity,” said the report.

The report further highlighted that on Solar PV project, Tlou has environmental approval for 20 MW of gas fired power and 20 MW of solar PV generation, and environmental approval for a 25 MW 66 kV transmission line grid connection.

“The Lesedi site has abundant land for solar expansion. Gas fired generation offers the ability to load follow solar PV for predictable output and grid stability. First electricity sales are expected 12 months from transmission line commencement.”

K1 Capital said Infrastructure will be scalable to 25 MW, limited by the transmission line.

“We believe the hybrid gas/ solar model has merit and our analysis indicates the solar PV project is economic on a standalone basis. The inclusion of battery storage is a possible future enhancement,” said the report.