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Tlou Energy, BPC seal 10mw power deal

The PPP has been hailed as a means of reducing reliance on diesel-fuelled power stations and highly costly power imports that will also contribute to a desirable energy mix.

mm by Kabo Ramasia
October 27, 2021
in Companies & Markets
Reading Time: 1 min read
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Tlou Energy, BPC seal 10mw power deal

Gabaake Gabaake, Executive Director (Pic:Press Photo)

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Tlou Energy and Botswana Power Corporation (BPC) have entered into a Power Purchase Agreement (PPA) that will see the company supply Coal Bed Methane (CMB) to BPC as the country moves towards power self-sufficiency.

Botswanaโ€™s first CMB agreement, which will run for five years, entails tapping into the countryโ€™s vast renewable energy resources in order to reduce use of carbon in power plants. โ€œIt is through the PPA that the parties will commit to the supply and purchase of the 10MW from Tlou Energyโ€™s Coal Bed Methane power plant,โ€ the CEO of Botswana Power Corporation, David Kgoboko, said at the signing ceremony. Kgoboko noted that in addition to improving the Botswanaโ€™s energy supply and contributing to an appropriate energy mix, the project will reduce reliance on diesel power stations and highly costly emergency power imports.

โ€œAs BPC, we continue to support government efforts to reform and liberalise the electricity supply industry,โ€ he said. โ€œThese efforts are already transforming the industry with the advent of IPPs such as Tlou Energy and others to come in the near future.โ€

Kgoboko hailed the occasion as a โ€œmilestone for the country towards commercialisation of renewable energy resources, diversification of the energy mix and self-sufficiency in power generationโ€. Speaking at the same ceremony, the Minister of Mineral Resources, Green Technology and Energy Security, Lefoko Moagi, described the PPP as โ€œa critical projectโ€ for the nation.

Minister Moagi said due to growing energy demand, the government is facilitating private sector companies to produce Coal Bed Methane in order to reduce Botswanaโ€™s carbon print. He called on the parties โ€œto work hard to meet demand and deliver the project within time and on budgetโ€. The supply to the BPC grid is expected to come on stream in the next 48 months.

 

Tags: Botswana Power Corporation (BPC)David KgobokoLefoko MoagiTlou Energy

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