Business

BPC signs contract to expand Matshelagabedi plant

In a statement released yesterday, APR said that it would provide 35MW of new power generation for a two-year term.

“APR Energy will install and operate the fast-track, turnkey power plant adjacent to BPC’s existing 70MW generating facility outside of Francistown. “APR Energy expects to commission the plant in the third quarter of 2015,” reads the statement.

The power plant will feature diesel power modules that have been redeployed from APR Energy’s former project in Libya.

The contract builds on a relationship that began in 2009 when APR Energy first developed a 70MW solution for the utility to supplement electricity being imported from neighbouring countries.  

At the time it was installed, APR Energy’s Francistown project was the largest temporary power station of its kind to be implemented within the Southern African Power Pool (SAPP) .

APR Energy sold the power plant facility to BPC in 2014 to ensure reliable power generation into the future. The 35MW project adds generation capacity to improve BPC’s ability to provide reliable power to domestic industrial customers.

The APR Energy Chief Executive Officer, Laurence Anderson said they were honoured to have been selected by BPC again, as it is a reflection of their commitment to operational excellence.  “BPC’s satisfaction with the services we have provided during our years working together,” he said.

“We are pleased that this project will redeploy fleet from our Libya project, allowing us to put those assets back to work.

Managing director APR Energy’s Europe, Middle East and Africa, Ranjit Singh said they are well positioned to take advantage of additional opportunities that may arise in the region.

“There continue to be power shortages in southern Africa as a result of rising demand for electricity within the Southern African Power Pool and, with our operating presence in Angola with two power plants and our extensive experience in Botswana and elsewhere on the continent,” he said.

The Matshelagabedi diesel plant together with the 90MW Orapa Plant, have played a critical role in alleviating electricity shortages in the past five years, as the country faced consistent power outages due to the failure of the 600 MW Morupule B power station.  As part of efforts to secure adequate power, BPC is also currently running tenders for the extension of Morupule B power station by a further 300MW.

Government has invited seven pre-qualified Independent Power Producers (IPPs) bidders to develop a Morupule B Units 5 and 6, with tenders closing on at the end of April this year. The power plant is expected to be completed in 2018.

IPPs will also be invited to develop a further 300 MW Power Plant and a Coal Mine at a new site, preferably as one economic unit. Plans are also underway to test the market for possible development of a 100 MW Renewable Energy Power Plant.

Botswana currently has a peak demand of around 600 MW, but this amount is expected to rise to 850 MW in the next three years.