A pilot Power Purchase Agreement (PPA) has been fully executed between Tlou Energy Limited and Botswana Power Corporation (BPC) for the first 2MW of power from the Lesedi project.
Tlou Energy is focused on delivering power in Botswana and southern Africa through the exploration and development of gas and solar power. The company’s first proposed development is the Lesedi Power Project (Lesedi).
According to a company statement, a grid connection agreement has been signed which enables the injection of power into the BPC grid. “These are key agreements that will facilitate the development of the power project and the sale of first power,” Tlou Energy noted.
In addition, Botswana’s Ministry of Mineral Resources Green Technology and Energy Security (MMGE) has provided confirmation that negotiations on a larger PPA are due to commence in February.
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Tlou’s managing director, Tony Gilby commented: “It is great to see that Botswana is open for business and the government is motivated to get the gas industry up and running. Tlou plans to start the development of the Lesedi project as soon as possible and confirmation of the Government’s enthusiasm to provide the necessary support to ensure the commercial development of CBM is very well received.
“In addition, we have also recommenced negotiations with Botswana-based project financiers this month as we aim to close a deal for funding as soon as possible. After what was an extremely challenging year, the company is already making progress in 2021 and anticipates further advancement on all fronts in the coming term. We look forward to updating the market with further developments in due course.”
Tlou Energy says it has received written confirmation from MMGE of the “intention of MMGE to fast track the development of Coal Bed Methane (CBM) in Botswana.
The company further highlighted that MMGE also stated that it is “happy to provide the necessary support to ensure commercial development of CBM.”
In relation to the current tender to implement up to 100MW of CBM fired power plants, MMGE has stated that negotiations with preferred bidders are due to commence in February 2021.
The letter also acknowledged that the “Government is fully committed to seeing this project coming to fruition, as it will promote the gas industry, contribute toward import substitution, as well as to improve the livelihood of Batswana.”
In 2018, MMGE issued a Request for Proposal for Development of up to 100MW of CBM fueled power plants in Botswana.
The company submitted a comprehensive response to the tender including a plan to develop the project in stages, as well as outlining project feasibility, proposed field development, installation of power generation facilities and supply of power into the grid in Botswana. Upon successful completion of the initial project, the company is considering to expand.