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i do not understand how can there be no formal ppa needed, yet they have invited companies to tender for 2X50 mw projects ? the companies have been shortlisted, i wonder if there is a list somewhere of companies who took part in this ?
There was a lot of discussion on whether we qualified for any of that $80M Whizzer.
I thought we agreed it was for renewable energy after some argued it was for tourism and other areas i.e. not energy production.
e.g. https://www.afdb.org/en/news-and-events/african-development-banks-facility-energy-inclusion-attracts-160m-commitments-small-scale-renewable-energy-34792
That’s the thing brad when you think your the only one who’s opinion is right, you’ve been told on here a few times the funding isn’t dependent on a ppa being signed but you only listen to yourself.
I'm no clearer MM.
1. I thought funding of CBM related power was totally dependent upon the presence of a PPA - signed and sealed.
2. Will AfDB credit supply that? Or is that $80M line of credit purely for use on renewable energy i.e Solar?
The difference being that under a PPA funds will come from BDC money/Botswana coffers and 7% may not be the interest rate - it will be as negotiated for the PPA.
The funds that the BDC have were advanced to them by the AfDB in February.
The received them at 7% with a 2-year grace period.
The AfDB have also made available the Transactional Advisers for the PPA.
"The Botswana Power Corporation (BPC) expects to sign a long awaited deal for the development of 100 megawatts of solar power by November this year, BusinessWeek has learnt."
November was around the pre-covid date TG expected to have the wires in place. It might be relevant or not.
MM are you of the mind that the African funds mentioned in the link are what BDC have to play with?
https://drive.google.com/file/d/1z70JePqLQAvb2nzTWchBkF6Q4433dEEJ/view?usp=sharing
I believe the board until they are shown to be untrustworthy.
Therefore $10M and $30M look like very accurate estimates (on Nov 27 2019).
I'll accept the costs might have changed with covid - transportation costs and raw materials might have changed in various countries - but the PPA that Colm referenced appeared sooner than expected, albeit short of a few details. I trust him!
I've pinched a couple of minutes of the podcast which are unedited as a reminder of his words!
https://drive.google.com/file/d/1EQ4bw-i2P35Be4xlV5MGev73dkXHxkR-/view
BTW I think you are 'mistaken' about solar, and that is where the market will be very pleasantly surprised.
I hear you Whizzer and none of us are getting any younger!
I know that the BoD are aware of shareholder impatience and I also know that the wheels are being cranked as hard as possible behind the scenes. As a personal opinion I think they do not want to release 'empty' news as an update, and that we will have meaningful news in the not too distant future.
Thanks mm, but that’s a big if and when, look how long we waited for flow rates ( all of last year ) and we still don’t know what they peaked at! Then you have the ppa, what is it now 3 years we’ve been waiting! Throw in the funding which they intimated would be easy to close out and we are still waiting for it, so I’m not holding much hope of hearing anything soon about solar ( could be wrong of course ) but I don’t see anything coming soon. Not having a pop at you by the way, just pointing out the track record for coming up with anything fast just doesn’t happen with tlou! Any chance you can ask Sasha to put some of these points discussed today to the bod please?
'A section has been set up within our operations to facilitate the participation of IPPs in the production of renewable energy with the corporation as the off-taker.'
Key phrase from the BPC. As I understand it, the BPC will buoy solar-generated power off IPPs outside of any formal PPA.
Very, very significant for TLOU as and when confirmed.
Whizzer - I asked.
Minor do you mind me asking how you know this to be true that tlou are Involved with it?
'But looking on the bright side - more dewatering usually leads to higher gas flows!'
Good to see that genuine positivity hasn't been lost here. You're spot on Brad and we should get there. My money's on it.
Good timing MM, I just posted this on ADVFN :O)
Donk, you seem to ignore the fact that Botswana's coal fired power is a near disaster and that CBM was offered to Kalahari in 2012 and they are still waiting for a glimmer of hope from them!
And now they have TLOU who have had CBM power for 3 or 4 years for their own use, trillions of cu ft of gas, and an undoubted ability to deliver once dewatering completes!
We are all aware that CBM gas fields CAN take several years to dewater first time round but subsequently extra wells are much quicker - the initial problem!
The offer of an interim PPA has side-lined that one, and now we have covid related problems!
We are only talking $10M to get 2Mw up and running at the last estimate. It is peanuts to Botswana, and BDC just need the PPA to be signed. The future for BDC looks much brighter than before, at least , regarding electricity.
Lockdown permitting, it won't surprise me if a solar PPA is not offered shortly to TLOU. 20Mw whilst waiting for 10Mw of CBM makes sense and TG seems happy to provide BOTH, history in the making! It will make it possible for TLOU to shutdown CBM during the day for maintenance/expansion , and the same for solar at anytime.
It must be soul destroying for TG to be on the verge of making history and to have so many unavoidable hiccoughs in his way - all 2 of them! Unexpected water levels at Lesedi than they found at Selemo, and Covid! But looking on the bright side - more dewatering usually leads to higher gas flows!
As I understand it, TLOU are involved in this:
The Botswana Power Corporation (BPC) expects to sign a long awaited deal for the development of 100 megawatts of solar power by November this year, BusinessWeek has learnt.
“The corporation is embracing solar photovoltaic electricity generation particularly through the incoming IPPs and will use the technology as part of an imaginative future energy mix to deliver power efficiently and cost effectively,” directors said.
“Renewable energy projects will not only enhance the volume of locally produced power, they will also assist in reducing the corporation’s and Botswana’s, carbon emissions.
“A section has been set up within our operations to facilitate the participation of IPPs in the production of renewable energy with the corporation as the off-taker.”
https://www.mmegi.bw/index.php?aid=85686&dir=2020/may/29