Tlou seals power deal with BPC

Pauline Dikuelo | Monday April 13, 2020 13:05

 

Tlou seals power deal with BPC

According to the Managing Director Anthony Gilby, the interim Power Purchase Agreement (PPA) is now undergoing final regulatory formalities. This would enable the finalisation of funding and commercial development. 

'Agreement of this PPA is a major step forward for Tlou energy as it is expected to jumpstart commercial activities at central Botswana,' he said. 

Gilby said Tlou Energy remains in discussion with potential project finance partners, who have been waiting to see the interim PPA in place, which facilitates connection to the power grid and first revenue for the company.

'A pathway to revenue generation is key for finances and once connected to the grid, expansion of the project is seen as a relatively straightforward and a largely derisked process,' Gilby said. 

The project is expected to lead Botswana into a new era of clean energy production, tapping into billions of cubic in resources.

The company submitted a proposal to the Ministry of Mineral Resources Green Technology and Energy Security in 2018 for the development of a 100MW CBM gas to power plant. The 10MW proposal is separate to the 2MW interim PPA announced. BPC and the ministry continue to assess the 10MW proposal and will advise the company in due course. 

Tlou Energy is focused on generating cleaner power in Botswana for supply into the local and regional power markets.