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Botswana signs 10MW PPA with power solutions company

The Botswana Power Corporation (BPC) has signed a Power Purchase Agreement (PPA) with Tlou Energy Limited. Under the terms of the PPA, BPC will purchase up to 10MW of power generated at Tlou’s Lesedi power project.

The PPA is for an initial five-year term with the 10MW project being the first phase of Tlou’s planned power project expansion. 

Tony Gilby, Tlou’s Managing Director, said “Signing of the 10MW PPA is a major step forward for Tlou and builds on the excellent progress made to date. It has taken some time and considerable effort to get to this point, as all of those involved [will] appreciate. This achievement puts the company on a firm path towards the development of the Lesedi power project and considerable growth potential.”

“With strong demand for reliable and cleaner power in the region, this 10MW project is expected to be the start of much larger developments by the company. This is great news for Tlou, our shareholders and for Botswana. After a long wait, we can now look forward to getting the project up and running.”

Lesedi Power Project

Lesedi is the company’s most advanced project and is located in Botswana’s Central District. The project has all approvals in place to allow development to commence.

The first phase will be a 10MW power project with electricity to be sold to Botswana Power Corporation.  Once in full production, 10MW of generation could provide annual revenue of approximately $10 million.

Key stages of the development are outlined below:

  • Construction and installation of an overhead transmission line and substations to connect Lesedi to the electricity grid
  • Installation of generation assets
  • Commissioning and testing
  • Sale of first power 

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Tlou plans to start with the supply of power to Botswana followed by expansion across southern Africa where demand for new sources of cleaner energy is very strong.

Nomvuyo Tena
Nomvuyo Tena is a Content Producer at Clarion Events Africa and is as passionate about the energy transition in Africa as she is about music and Beyonce.