Thousands targeted in BPC's 'French Connection'

MBONGENI MGUNI
Staff Writer | Thursday July 15, 2010 00:00

This morning, BPC and EDF chief executives are expected to sign shareholder and share purchase agreements, confirming the French equity in BPC Lesedi. Botswana's Minister of Minerals, Energy and Water Resources, Ponatshego Kedikilwe and the French Ambassador to Botswana Genevieve Iancu will witness the signing ceremony.

The BPC's Rural Electrification Coordinator, Masego Kealotswe, told Mmegi yesterday that funds from the equity uptake will be used to advance BPC Lesedi's various renewable energy and off-grid initiatives.

These include the national rollout of a solarpowered rural electrification programme whose trial in four Kweneng District villages has been hailed as successful.

BPC Lesedi will own all photovoltaic systems in Botswana and operate as a franchise, with six to eight franchisees taking the photovoltaic (PV) or solar power services countrywide. These franchisees will install, operate and maintain PV systems and will collectively have between 20 and 30 sub-franchisees. The sub-franchisees will be empowered with area development contracts.

Kealotswe said although the BPC and EDF were the signing utilities, the equity arrangement would be between BPC Lesedi and the French giant's own renewable energy subsidiary.

She explained that apart from funding, the French input would also be for training, technology and expertise, as EDF has been involved in renewable energy initiatives for decades.

'The key focus is the rollout of renewable energy rural electrification project that we piloted in four Kweneng villages,' she said. 'The joint venture (between EDF and BPC Lesedi) will go throughout the country installing similar PV systems in rural areas.  'The partnership is however not just for the rollout, but for BPC Lesedi's entire mandate which covers off-grid rural electrification and renewable energy services.'

Last year, BPC began hunting for a partner for BPC Lesedi in order to provide technical and financial support for the fledgling subsidiary. BPC Lesedi will offer solar power for rental, rechargeable lanterns and improved stoves for rural households.

The solar power PV product is targeted at households presently using paraffin and Liquefied Petroleum Gas (LPG) earning between P400 and P1000 per month. BPC, together with its French partners, will subsidise the cost of solar home systems reaching a potential 72, 000 rural households.

The rechargeable lantern product is targeted at households presently using candles and paraffin and earning between P200 and P400 per month. BPC Lesedi will sell lanterns and batteries to the households and charge customers per recharge. The rechargeable lanterns provide light, radio and even cellphone recharge power. It is estimated that 55, 000 households could take up this project.

The improved stove product is targeted at households presently using wood for energy and earning between P200 and P1000 per month. BPC Lesedi will sell improved stoves capable of reducing the amount of wood required. It is estimated that 194, 000 households could take up the improved stoves.

Prior to the BPC Lesedi project, challenges to setting up a national renewable energy project have included low market density, difficult logistics to rural areas and high set-up costs.

These are expected to be resolved through BPC bringing its decades of experience and government backing, as well as the EDF's technical and financial input.

The Government of Botswana and the UNDP kick-started the renewable energy-based rural electrification project in November 2006 with both parties injecting a total of US$6.64 million (P46.4 million). BPC was subsequently appointed the implementing agency for the project.