RE: ...6 Sep 2019 11:23
Can access this article but not everything
Australian gas-to-power developer Tlou Energy expects to conclude by the end of 2019 the negotiations with Botswana Power Company (BPC) for a 30-year power purchase agreement (PPA) for its coalbed methane (CBM) project at Lesedi.
The initial 10MW CBM unit has an estimated cost of $15 million. Tlou Energy expects to reach financial close in Q4 2019, with commercial operations scheduled for Q4 2020.
The Australian company is offering a levelised cost of energy of $0.12 per kilowatt hour though this tariff is based on the initial 10MW pilot project. The project may be built out to the 100MW target as set in the tender, and could also include a 20MW solar PV on-site.
The PPA will also include a credit-enhancement mechanism provided by the government of Botswana to ensure project bankability. Tlou’s project will require a 66kV transmission line to evacuate power to the national grid via Serowe substation.
Botswana’s Department of Environmental Affairs advanced Tlou together with the other preferred bidder – local power developer Sekaname – from the RFP stage in the week of 20 May (2019). The RFP stage had taken nearly two and half years to conclude, including a re-tender in July 2018, but the two IPPs are now out of the procurement process and into the early stages of project development.
Sekaname – a subsidiary of Botswana-based gas exploration and energy development group Kalahari Energy – proposed a 97MW CBM project which has an estimated cost of $400 million, a source previously told IJGlobal. The national grid connection will be made through a 220kV line to the Serule substation.
Tlou Energy is being advised by Grant Thornton.
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