Tlou Energy to sell electricity to BPC

Tlou Energy will start selling electricity to Botswana Power Corporation ( BPC) in the second half of 2023 as construction of the 100km transmission line from Lesedi project is expected to be complete during the period.

To connect to BPC’s power grid, a 100 km transmission line is being built from the Lesedi project area to join the grid near Serowe. The company announced in its quarterly report that in addition to the transmission line, substations at either end of the line are due to be constructed. “This is expected to be completed in the second half of 2023. Sale of electricity can start thereafter.” Construction is being done by a local contractor, Zismo Engineering Pty Ltd ( Zismo) and is expected to be completed around mid- 2023. Progress at the end of September was 16 percent. Zismo plans to source a second drill rig for excavation and pole planting to increase the rate of progress along the line.

Electricity generated at the Lesedi 10MW gas fired power facility will be sold under a Power Purchase Agreement ( PPA) with BPC. Once in full production, the company anticipates that 10MW of generation could provide annual revenue of approximately

US$ 10m ( P133.9 million).

Tlou Energy Managing Director, Antony Gilby stated that the Company has acquired land in the Lesedi project area where work is underway on a purpose- built operations facility including accommodation and associated infrastructure required for the initial 10MW development and to allow for rapid project expansion thereafter. Recently, the company reported that the project might face possible delays due to delayed supply of materials.

The Lesedi site development is being undertaken by Tlou through its consultant contractor, African Gas Services ( AGS). “Tlou and AGS are undertaking the design and procurement services for the development of the Lesedi Power Project. AGS is also undertaking the management and construction of the power plant, the gas field development and gas gathering network,” said Gilby.

Layout design and surveying of the gas central processing facility is also complete while generation site clearing has commenced and requests for quotation for generation assets have been sent to suppliers. Tlou has two production wells, Lesedi three and Lesedi four which continue to produce gas. During the quarter, the Company decided to shut the Lesedi three well to reduce operational costs.