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A planned 2x150MW expansion to the troubled Chinese-built Morupule B power plant is on hold after its power purchase agreement (PPA) expired last month, Botswana energy minister Sadique Kebonang has confirmed. Known as Morupule B units V and VI, the plant was to be developed as an independent power producer (IPP). Japan’s Marubeni Corporation and South Korea’s Posco Energy won a tender to build, own and operate the facility late in 2015 and a PPA was signed in December 2016.

Kibo Mining has announced an agreement to acquire an 85% interest in the Mabesekwa coal to power project in Botswana from Sechaba Natural Resources, a 100% subsidiary of Shumba Energy. In a 30 November press release, AIM- and Johannesburg Stock Exchange-listed Kibo announced that Sechaba will receive a 28% shareholding in Kibo alongside retaining a 15% shareholding in a new special purpose vehicle to be incorporated for ownership of the Mabesekwa independent power project.

Tlou Energy has submitted a detailed proposal to the government for the development of up to 100MW of coalbed methane (CBM)-fuelled pilot power plants in Botswana’s Central District. The bid was in response to a request for proposals (RfP) issued to Tlou and a second company, Sekaname, in January this year.Tlou, which means ‘elephant’ in Setswana, has proposed a staged development starting with 10MW, using a technology proven in Australia that extracts the CBM without fracking.

Botswana Power Corporation (BPC) is seeking expressions of interest from independent power producers (IPPs) to develop a 100MW solar plant in a joint venture with the utility. Bids are due by 14 June. BPC said the country’s presently available capacity averaged 260MW from the 600MW installed capacity Morupule B plant, while the 132MW Morupule A plant is undergoing refurbishment. Peak demand is 600MW and the gap is met through imports from South Africa and Mozambique, with the 90MW Orapa and 105MW Matshelagabedi emergency plants used when imports are unavailable or too expensive.

Tlou Energy has announced a binding heads of agreement with the UK’s Independent Power Corporation (IPC) to develop a proposed coalbed methane (CBM)-to-power project of up to 100MW. Under the agreement, IPC and Tlou will jointly finalise work on a detailed proposal for submission to the Ministry of Mineral Resources, Green Technology and Energy Security for the supply of CBM power in modular stages, including negotiations with various third parties on the terms of an offtake agreement, network access and project funding.

A detailed request for proposals (RfP) has been issued to two bidders – Tlou Energy and Kalahari Sustainable Energy subsidiary Sekaname – selected by the government to develop a coalbed methane project of up to 100MW. Bids are due from the two companies by 12 July. The scheme is intended to establish pilot projects that will ultimately lead to establishing a gas supply for the 90MW Orapa peaking power plant, owned by the Botswana Power Corporation. Few details are yet known as the RfP requires confidentiality from the bidders.

Earlier this month a suite of project agreements was signed for units V and VI of Morupule B, which will be developed as an independent power producer (IPP) project by a consortium of Japan’s Marubeni and South Korea’s Posco Energy Company. South Korea’s GS Engineering and Construction Corporation is the engineering, procurement and construction contractor. The agreements signed included a power purchase agreement (PPA) with the national utility Botswana Power Corporation (BPC), a coal supply agreement with government-owned Morupule Coal Mine, and a water supply agreement with the Water Utilities Corporation.

A source close to the government has confirmed to African Energy that Botswana Power Corporation (BPC) is in talks with China National Electric Engineering Company (CNEEC) over the sale of its disastrous 600MW Morupule B coal power plant. CNEEC was the original contractor for the project, which has been operating at a fraction of its installed capacity since coming online in 2014. The Chinse company was plagued by accidents and technical challenges during construction before eventually having its contract terminated. Since then poor operations and maintenance have compounded problems at the plant.

As the government gets to grips with the need for big rises in domestic generation, the Public Procurement and Asset Disposal Board has granted Tlou Energy approval for a 50MW coalbed methane project at Lesedi, five times larger than the 10MW applied for. “The initial proposal submitted by Tlou Energy was for a 10MW gas-to-power pilot project. The expected 50MW project approval is a welcome development and in line with the company’s plans to expand the Lesedi project to supply 50MW of power in the medium term in modular stages,” the AIM and ASX-listed company said.

Speaking at the Botswana Resource Sector Conference in Gaborone on 14 June, Botswanan officials outlined plans to expand electricity supply, while minerals, energy and water resources minister Kitso Mokaila declared that the country planned to become a power exporter by 2020. Details of the plans remain unclear, but the government does appear to have finally achieved some momentum. This was demonstrated by the announcement that a second 300MW coal independent power producer (IPP) project had been provisionally awarded at the Morupule B complex.

Botswana Power Corporation (BPC) transmission director Nchena Mothebe gave an update on the 13 interconnection projects under way in the Southern African Power Pool. Eight of these are at feasibility stage or being prepared and five at prefeasibility stage.

Botswana’s minerals, energy and water resources minister Kitso Mokaila has told parliament that boilers at the 600MW Morupule B power plant are expected to take three years to repair. The Botswana Press Agency quoted Mokaila as saying that because of construction delays the 7.4bn pula ($650m) coal power plant was still in the 24-month liability period in which the contractor is responsible for fixing defects. This is due to end in June, but will be extended to allow engineering, procurement and construction contractor China National Electric Engineering Company (CNEEC) to fix the problems.

A consortium of South Korea’s Posco Energy Company and Japan’s Marubeni has been selected as preferred bidder to develop the $800m 300MW second phase of the Morupule B coal power plant. The project is receiving financing from the Export-Import Bank of Korea and the Japan Bank for International Co-operation, alongside a commercial bank. GS Engineering and Construction Corporation is the engineering, procurement and construction contractor. Construction is expected to begin in H2 2016 and be completed in 2020.

Coal Petroleum, a consortium of United Refineries Botswana (URB) and South African investment house Kumvest, has announced that it is developing a 20,000 b/d coal-to-liquids project in Francistown, to produce oil derivative products and fertiliser and generate up to 304MW of electricity for the power-starved grid. The giant project is expected to cost $4.2bn and be completed in three phases to 2020, eventually reaching 50,000 b/d. The plant will be developed as an independent power producer (IPP) but, as electricity will be produced using coal-derived gas, it will not be bid into the long-delayed coal IPP procurement process.

US-based temporary power provider APR Energy announced on 18 September that it had completed the installation and commissioning of a 35MW power plant for Botswana Power Corporation (BPC) and the addition of 48MW capacity to an existing plant for national utility Société Nationale d’Eléctricité du Sénégal (Senelec) in Senegal. The facility in Botswana was announced on 27 May and will help offset continued problems at BPC’s 600MW Morupule B project.