Energy

English

Botswana has limited exploitable energy resources and currently relies on imports of electricity and all petroleum products.

The price of connection to the national grid is a flat rate charge of P5000. The total number of villages electrified as of October 2010 is 344 villages out of a total of 462 (Department of Energy Affairs).

Botswana's available energy resources include coal, solar and bio-energy (biomass and bio-fuels).

Coal

Botswana has indicated reserves of some 212 billion tonnes of coal. Currently, Morupule mine is the only deposit mined, supplying Morupule Power Station, BCL Smelter and Botswana Ash. The vast majority of Botswana’s coal resources remain undeveloped. The following image and table show coal deposits in Botswana.

 

 

 

Coalfields of Botswana

From DGS, Chatupa, 1998 (Reviewed by Barlow Jonkey)

Coalfield

Tonnes
(Mt) (1998)#

Definerd Published
Resources Figures (Mt) M/Ind/Inf

Location

Dukwe

1,604

+1,969
-1,500 Exploration target

Sowa/Dukwe

Foley

6,860

3,377+860
3-6,000 Exploration target

Sese/Mabesekwa

Serule

9,685

915
-3,900 Exploration target

Lechana/Tshimoyapula

Bobonong

179

None declared

Poorly Explored

Morupule

18,072

190
7,234
2,400

MCL
Kgaswe
Morupule South

Moijabana

3,539

1,460
+5,000 Exploration target

Mijabana
Kweneng

Mmamabula

23,213

2,925+442+2,512+3,144+2,493

MME/MMNC/MMS/MMW

Mmamantswe

2,898

1,300

MmaMantswe

Letlhakeng

70,353

4,230+2,654

Takatokwane remainder poorly explored

Dutlwe

71,740

None declared

Poorly explored

Ncojane

4,725

None declared

Poorly explored

Total

212,868

60,021(28%)

 

Investment Opportunities

Mmamabula IPP

The deficit in power supply currently being experienced in Southern Africa provides a good opportunity for new independent power producers (IPPs) to use coal to generate power for domestic use and export. One such project in Botswana is the Mmamabula IPP. The World Bank (2009) highlighted the following about the Mmamabula IPP:

  • It is a coal-to-power project, which was originally structured to produce 2400 MW of power.
  • This project and other large-scale power projects in Mozambique and Namibia were planned to supply ESKOM through long-term purchase agreements (PPAs).
  • Due to difficulties in arranging turnkey contracts and power sales of this size, the design capacity was reduced to 1200 MW.
  • According to plans, the Mmamabula IPP plans to sell 900 MW of its energy and capacity to ESKOM and 300 MW to BPC.
  • The Mmamabula project includes transmission lines connecting with the ESKOM system and a new sub-station at Morupule.

The Electricity Supply Act was amended in 2008 to enable IPPs in Botswana to generate and sell power.

In addition to the initiatives above, Botswana has resources such as coal, solar and CBM, which can be alternative sources of power and alleviate power shortages. The various cost options of each of the different types of electricity generation are presented in the following table.

Options

Cost USc/kWh

Availability

Remarks

Existing Coal (Morupule A)

5+

90 MW net

Decommissioned by 2020

Diesel Units

50+

160MW

Short term gap fill only

Concentrating Solar Power

20

Up to 200 MW by 2020

50 MW targeted by 2016: needs donor support

CBM

7-22

200MW by 2020;50 MW likely by 2015/6

Exploration yet to commence; costs timing and capacity to based on the availability of CBM

New coal plants

5+

Up to 3000 MW as per SAPP

4 year construction feasible for small units.

The table indicates that domestic coal is the least cost option and given the relatively short construction periods for small and standard sized projects, there is potential for investment in coal-to-power projects to replace electricity imports from Eskom and ensure domestic energy power security. A World Bank Morupule project evaluation also indicated Botswana had opportunity to diversify its economy and contribute to regional energy security by substituting for ESKOM imports through among, other potential energy sources, coal resources

Mookane Domestic Power Project

The proposed Mookane Domestic Power Project (MDPP) initiative demonstrates the possibility of exploiting coal resources as an immediate alternative option to produce coal-generated electricity to meet domestic energy needs. A 2010 CIC Economic Impact Assessment of the MDPP considered the possibility of constructing a coalmine at Mookane to produce electricity. The report highlighted following;

  • MDPP project was estimated at P7.8 billion and would exploit Mmamabula coal, which has to date, remained unexploited.
  • MDPP would be the first IPP in Botswana and one of the largest private sector investments and would attract FDI.
  • The project was expected to provide 300 MW of coal-fired electricity, with a possible expansion to 450 MW if additional off-take agreements are secured.
  • MDPP promoted linkages with other sectors. Linkages through local procurement to the mine and power station were estimated at P121 million. At full production capacity, the project was expected to create employment estimated at 800 and was expected to support future developments such as the Trans-Kalahari Rail initiative.

The indirect economic effects of the MDPP are presented in table 3.4 below which include the local procurement estimates of the mine.

Indirect Real GDP impact (P million, annual average 2013-2043, constant 2010 prices)

Item

Est. value (Pm)

Local supplies to mine and power station

121

Spending from employee wages

60

Additional government spending

104

Total

285

NB includes estimated multiplier effects (2x)

 

Other investment opportunities include:

  • Coal-bed Methane (CBM)
  • Uranium
  • Solar Energy
  • Biogas and Biodiesel

Opportunities in this Sector

See below for the opportunities in this Sector accross various districts in Botswana...