Botswana Energy Regulatory Authority (BERA) has allotted generation licenses to three Independent Power Producers (IPPs) for the construction of power plants with a 827MW generation capacity.
The licence has a term of 15 years, the three IPPs include the Gaborone based Energy & Natural Resource Corporation and Sese Power, which is based in Francistown, as well as listed stock exchange company, Tlou Energy.
Energy & Natural Resource Corporation has been granted authority to construct a 600MW coal-fired power station north of Morupule Colliery in the Central District.
According to Botswana Daily News, the company is expected to export the generated electricity to the Southern African Power Pool, ZESA and Eskom.
Sese Power will construct a 225MW coal-fired power station east of Makomoto village, near Tonota, and is expected to export electricity to mining companies in Zambia.
Lastly, Tlou Energy will generate 2MW of coal bed methane gas and solar power at the Lesedi project to Botswana Power Corporation (BPC) at the approved BPC tariff, as well as a series of standard conditions.
Botswana opens energy sector to IPPs
It is reported that the three companies have agreed to build their own transmission lines from the proposed power stations and connect to the BPC transmission network.
Speaking during a handing over of the licenses in Lobatse, BERA chief executive officer, Rose Seretse, said it was encouraging to see the three companies enter the electricity-producing sector.
Seretse appreciated the prospect of Botswana becoming an exporter of power. “It has been a journey to arrive where we are today. But we (BERA) are here to ensure that organisations such as yours add impetus to the economy of this nation. The work that you do is very important because electricity is very essential,” she said.
BERA chief operations officer Duncan Morotsi explained that the three companies were the first IPPs in Botswana to be licensed to generate electricity.
Morotsi said: “These are big projects and we believe that you will succeed. We don’t only want you to produce for Batswana, we also want you to export to make this one of the revenues earning industries for Botswana,” he said.
Gabaake Gabaake of Tlou Energy expressed gratitude for the guidance and facilitation BERA gave the companies during the process of applying for the licenses. He said the development was a significant milestone for the energy sector in this country.