Over 160 firms bid for 100MW solar tender
Brian Benza | Friday June 23, 2017 14:25
In a statement released this week, BPC said following the closure of the submissions for the Expression of Interest (EIO) on June 14, they will, over the next four weeks, select a short list of companies for the next stage of the tendering process.
“The Corporation plans to conclude identification of and the securing of agreement with a Joint Venture partner on a timeline for the project to start in December 2017 and for the entire 100MW solar power capacity to feed into the national grid during the 2018/19 financial year,” BPC said. The 166, which comprise both local and international companies, include the Chinese firm that is currently negotiating with BPC to buy the 600MW Morupule B power station, China Machinery Engineering Corporation.
Japan’s Marubeni, which is currently entangled in a dispute with government over a P8 billion sovereign guarantee for the expansion of Morupule B by 300MW, also submitted a bid.
Household international energy company names from South Africa, USA, China and Japan also submitted bids.
BPC forecast energy demand to more than double to 1,359MW by 2035 from around 600MW currently. Botswana is facing power supply deficit and relies on electricity imports from South Africa and Mozambique, but the 300MW expansion of its coal-fired Morupule B power plant could pave the way for the country to attain self-sufficiency in electricity generation.
However, the expansion of the plant, which currently generates around 260MW, has been stalled by a dispute over a sovereign guarantee with Japanese contractor, Marubeni.
The power deficit has been compounded by the low availability from the Chinese-built Morupule B power station, which has a capacity of 600MW but has available base generation capacity of an average 260MW. BPC also utilises two emergency plants with a combined capacity of 195MW when the imports are not available or when they are too expensive. BPC also said it was open to a phased construction of the 100MW solar plant.
“Solar power plants lend themselves to modular installation and every opportunity will be taken for every completed stage /phase to begin feeding into the grid in instalments until all the targeted 100MW is established,” said BPC.
Botswana plans to add another 800MW electricity capacity in the next five years through coal, gas and solar-fired plants. BPC has also invited bids from independent power producers (IPP) to set up 20 mini hybrid power stations in isolated villages as part of plans to boost electricity access.
In a tender published on its website, the power utility said government’s target of increasing electricity access to 80% by 2016 has not been met and the latest initiatives was part of measures to reach the goal. To address the electricity access challenges and to meet the future electricity demand, the BPC says in conjunction with the Ministry of Minerals Resources, Green Technology and Energy Security has embarked on a comprehensive electrical power system development strategy which includes amongst 96 rural villages, the development of mini-hybrid power plants in 20 isolated villages.
The project is expected to run for two years from appointment of the preferred IPPs joint venture partner. The hybrid rural network projects aims to not only electrify isolated rural areas, but improve security and reliability of energy supply as well as increase share of new and renewable sources of energy in the energy supply mix of the country while offsetting the country’s carbon footprint.