A pilot Power Purchase Agreement (PPA) has been fully executed between Tlou Energy and Botswana Power Corporation (BPC) for the first 2MW of power from the Lesedi project. A grid connection agreement has also been signed which enables the injection of power into the BPC grid. These are key agreements that will facilitate development of the power project and the sale of first power.
In addition, Botswana’s Ministry of Mineral Resources Green Technology and Energy Security (MMGE) has provided confirmation that negotiations on a larger PPA are due to commence in February.
Tony Gilby, Managing Director, Tlou said: It is great to see that Botswana is open for business and the Government is motivated to get the gas industry up and running. Tlou plans to start development of the Lesedi project as soon as possible and confirmation of the Governments enthusiasm to provide the necessary support to ensure commercial development of CBM is very well received. In addition, we have
Tlou Energy And Botswana Power Sign Pilot Purchase Agreement
Tue, 19th Jan 2021 11:54
(Alliance News) - Tlou Energy Ltd on Tuesday announced a pilot power purchase agreement for the first two megawatts of power from the Lesedi Power project with Botswana Power Corp has been fully executed.
The Botswana and southern Africa focused exploration firm also said it has signed a grid connection agreement to enable a power injection into Botswana Power s grid. This will facilitate development of the power project and the sale of first power, it added.
Shares in Tlou were up 11% at 3.33 pence in London on Tuesday.
Tlou said negotiations on a larger power purchase agreement, of up to 100 megawatts coal bed methane fired power plants, with Botswana s Ministry of Mineral Resources Green Technology and Energy Security will begin in February, following the submission of Tlou s development plan.
Summary Australia s Tlou Energy received a licence last year to generate electricity in Botswana from coalbed methane.
by: Shardul Sharma
Australia s Tlou Energy has signed a pilot power purchase agreement (PPA) to supply Botswana Power Corp (BPC).
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TLOU ENERGY MD: Tony Gilby
Tlou Energy Managing Director (MD), Tony Gilby says the company is yet to secure funding for its projects.
In an update to stakeholders this week, Gilby admitted that while project finance discussions continue to progress, the process is taking longer than expected.
He explained a number of potential financiers would like to see the tender process come to a successful conclusion before committing funds to the project.
Once the tender process is complete, Gilby says the company expects to have additional funding options available.
In 2018, the Ministry of Mineral Resources Green Technology and Energy Security (MMGE) issued a Request for Proposal for the development of up to 100 Megawatts (MW) of Coalbed Methane (CBM) fueled power plants.