Doubts raised as gov’t fast-tracks power projects
Mbongeni Mguni | Monday May 30, 2022 06:00
Although few details have been provided about the review of the IRP, it is understood the fast-tracking of several projects is in line with supporting the country’s energy transition from its current near-total reliance on fossil fuels such as coal.
The IRP, launched in December 2020, details six major renewable energy projects government intends to procure from independent power producers to cover the country’s electricity demand over the years to 2040.
Of the maximum 885MW government seeks to procure across the six projects, 485MW will be from renewable energy sources, while the balance includes what is expected to be the last coal-fired plant backed by government, a 300MW project already in the final stages of procurement.
Speaking at a recent conference, Minerals and Energy minister, Lefhoko Moagi announced that the IRP was being reviewed, less than a year and a half after its initial launch.
“The IRP is being reviewed and part of it is that projects that were put for years like 2027 can be brought forward so that we develop these much earlier than anticipated,” he said.
According to the IRP, the projects to be brought forward will likely include the 100MW solar photovoltaic whose procurement was due to start in 2025, with an eye to commercial operation by 2027. The 50MW wind project was due to undergo procurement in 2024 with a timeline of 2027 for production.
The 200MW concentrated solar plant, which is due on the national grid by 2026, is already under procurement after the ministry re-issued an invitation for pre-qualification. The invitation was originally floated in February and officials told BusinessWeek the re-issue was due to the need to tighten some of the legal language used in the original document.
According to the Botswana Power Corporation, at present, 83% of the country’s electricity demand is sourced from coal and under the IRP, the plan is that by 2030, this figure goes down to 64%, with 31% power by solar, four percent from wind and one percent from Coal Bed Methane.
However, industry experts are sceptical about whether the IRP timelines will be delivered, as well as how citizen capacity in renewables will be boosted by the procurement project.
“The IRP is at a steady but slow pace and also when we meet those targets, what legacy will be left for Batswana or its international companies that will come and do the job,” said Powerstar Energy Group managing director, Lumba Leonard, at the recent conference. “In South Africa, most of the jobs in renewables are done by local companies but here the tenders are open for international companies and there’s no requirement to say we want local or youth or Botswana-based companies and I am sceptical about this.”
Debswana’s Senior Carbon and Energy Manager Ishmael Motlhale said the diamond giant had had an opportunity to engage with the BPC on the IRP had concerns.
“The timelines, looking at where we are versus where we should be, we see a great challenge and for companies like us that are looking for offtakers, time is the challenge. “The timelines are not going at the pace that has been projected,” he said.
Botswana Energy Regulatory Authority Green Energy Manager Pelaelo Kgomotso said while it was laudable that the country had an energy development plan for the first time, it was essential to appreciate that “a lot of things can go wrong".
“These include the overall costs of the plan, the response to the plan and our ability to implement it,” he said. “We have got something that’s given us some idea in terms of what we need but there is work to be done.”
In response, Moagi said authorities believe the projects can happen in the set timelines with the right combination of skills and citizen empowerment.
“With every project, whatever the type, you need competence for it to be delivered,” he said. “That’s why some of the solar projects could not be delivered because the right competence was not found in those proposals hence now they are opened up and the critical thing is that there must be a local component in those partnerships. “We want them to plan in the timelines that are there, given the 20-year tenure and the delivery times of these projects, we believe that can still be achieved but we need the right combination of skills while helping Batswana.”