Power Purchase Agreement Botswana

The company also sees a chance for Tlou to become an important player in power in the country and to develop a CBM project of regional importance. The InBotswana authorities have agreed to begin discussions on a temporary aerating contract to advance a pilot project. At a time when a solar project will be launched in Botswana in June 2021 to power more homes. Construction of the two 100 MWp photovoltaic plants will be completed in August 2022. Tony Gilby of Tlou Energy Ltd (LON:TLOU) talks to Andrew Scott of Proactive London after confirming that they have been awarded an interim power purchase contract (PPA) for his coal-methane-gas electric gas project in Botswana. He says the provisional AAE has been agreed with Botswana Power… The first phase of funding for a 10 MW pilot project could even be in effect by the end of this year (2019) and Shore Capital believes that successful project financing (probably the mix of equity and debt) has the potential to play a strong kicking role for the share price. “Lesedi would be the first project of its kind in Botswana to enter commercial production and offer great potential for electricity supply domestic territory and through the Southern African Power Pool. Tlou Energy is focused on providing energy solutions in Botswana and southern Africa to address some of the region`s chronic electricity shortage. Tlou is currently developing projects with gas and plans to combine this with solar electricity to provide a cleaner base load source. “Recognizing that it has taken a long time and to demonstrate the government`s commitment, we have agreed to engage in discussions for a temporary electricity supply contract that would allow your organization to provide electricity for a pilot/proof-of-concept approach, while negotiations on the full AAE are underway.” Earlier, Tlou shares soared on April 3, when they landed a provisional power purchase contract (PPP) for their coal and methane bed project with gas-to-electricity. In a statement, TLOU called the move a “big step forward” because it will facilitate the connection to the electricity grid and the company`s first turnover. Meanwhile, South Africa has an integrated resource plan for 2019, which aims for an additional 3,000 MW of gas generation capacity by 2030 and supports strategic energy projects in neighbouring countries.

“The increase is intended to ensure that rates are reasonable, affordable and properly calculated. The rate remains one of the lowest in the countries of the region without hydropower,” he said. In a statement, the company added an excerpt from the letter that said: “The Government of Botswana is committed to seeing successful negotiations with your company on the electricity supply contract (AAE) for the supply of electricity from your coal bed and methane (CBM) project. An application for an interim aerating contract was submitted to expedite the approval process in Botswana, while Tlou received a non-binding proposal from the Botswana Development Corporation (BDC) to finance the first 10 MW of the project.

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