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damo72 - nailed it
MM. I think that their strategy of working on the govt permissions prior to investment and building is the right one, for obvious reasons. Lots of opportunities ahead - which have all been discussed here.
Alos the length of time that it took Tlou to go from a standing start to where they are now is a barrier to entry for newcomers. Large power providers/miners/utilities (or a conglomerate of them) can either do a DIY job or get credit and buy an existing company with all the right permissions. And as those of us who have worked with big companies know; they don't speculate on new business opportunities, they pay (a lot more) to buy certainty.
TLOU have actually given huge steers on these options within their 2020 RNSs. The market has missed them. I have double-checked with the company and been informed that I am on the right track.
Said utilities, industrialists and miners are crying out for cheap and reliable power in Botswana and the SAPP region more widely - witness the shambles of electricity supply in SA with Eskom.
The solution for the U I and Ms is to self-generate (as identified also by BERA in the article linked below). For them to do that they need to be established, permis ssioned and enabled to generate. TLOU are the first IPP company to be so positioned in Botswana for both CBM and Solar. The implications are two-fold - firstly that major JVs are now possible even probable, and the second rhymes with Buy Out.
Hi damo72 - always welcome. I understand that TLOU have made a proposal to the BPC for the supply of solar-generated power and that they believe that the BPC 'will take all and anything that can be supplied' - whether inside or outside of their formal solar tender process.
The thing is that now TLOU have been given generating licences by BERA for 2mw of electrical power from either CBM or Solar or a combination of both. This is highly significant as the are actually the first IPP in Botswana to be given licences for CBM and/or solar.
The relevance, and direct implication from the MmegiOnline article, and which builds on TGs 'scalable generation' observation of TLOU, is that a large utility, industrialist or miner can now approach TLOU as we are now fully permissioned and enabled for both methods.
MM thanks for the update. I seem to remember you posting something a few months ago about a 100Mw Solar farm that the Bots govt had sent out an EOI (or similar) for year end. Tlou could be front runner for that one as they have the first IPP solar generation licence. That would be a nice medium term venture in addition to the current 2Mw-10Mw-beyond CBM/Solar.
Isn't that licence for either or both CBM or Solar -you'm testing my memory on old news MM?
Haven't you got something current? We get enough repeats on TV without getting them here.
A lot has happened since you lasst posted (before today) - I'm not sure that BPC are a credible organisation any more.
Robin Island could be be the next holiday destination for the leaders who are left. Corruption galore according to some reports.
TLOU have been granted the first ever solar generation licence for an Independent Power Producer.
Smart pivot by TG and crew - to recognise the extended timeline of CBM and react to investor demand for solar.
https://www.mmegi.bw/index.php?aid=86041&dir=2020/june/26
The Botswana Energy Regulatory Authority (BERA) has noted high interest in licences for solar generation amongst investors and those wishing to develop self-generation projects.
Tlou Energy has signed a power-purchase agreement with the Botswana Power Corporation (BPC) for 2MW supply seen as a trial for a bigger plant.
“We are empowered to approve power purchase agreements between the BPC and any IPP,” Sebalo explained. “They can draft, but we vet and approve looking at various criteria including fair return.”
The country’s electricity demand peaks around 600MW each winter, but upcoming mines and growing urbanisation point to higher consumption in future. Government hopes at least 15% of the national electricity consumption will come from renewable sources in the coming years.