Tlou Energy has signed a 10MW Power Purchase Agreement (PPA) with the Botswana Power Corporation (BPC). Under the terms of the PPA, BPC will purchase up to 10MW of power generated at Tlou’s Lesedi power project.<\/p>\n
The PPA is for an initial five-year term with the 10MW project being the first phase of Tlou’s planned power project expansion.<\/p>\n
Tony Gilby, Tlou’s Managing Director, said\u00a0“Signing of the 10MW PPA is a major step forward for Tlou and builds on the excellent progress made to date. It has taken some time and considerable effort to get to this point as all of those involved would appreciate. This achievement puts the Company on a firm path towards development of the Lesedi power project and considerable growth potential.<\/em><\/p>\n With strong demand for reliable and cleaner power in the region, this 10MW project is expected to be the start of much larger developments by the Company.<\/em><\/p>\n This is great news for the Tlou, our shareholders and for\u00a0Botswana. After a long wait we can now look forward to getting the project up and running.”<\/em><\/p>\n \u00a0Lesedi Power Project<\/strong><\/p>\n Lesedi is the Company’s most advanced project and is located in\u00a0Botswana’s\u00a0Central District. The project has all approvals in place to allow development to commence. The first phase will be a 10MW power project with electricity to be sold to\u00a0Botswana Power Corporation.\u00a0 Once in full production, 10MW of generation could provide annual revenue of approximately\u00a0US$10m.<\/p>\n Key stages of the development are outlined below:<\/p>\n \u00a0Project Finance<\/strong><\/p>\n The Company has agreed terms with a potential financier for an initial\u00a0USD$10m\u00a0package to develop the Lesedi project. Legal agreements in relation to this proposal are being prepared. These agreements will need to be finalised and signed before the package becomes binding.<\/p>\n Power Market<\/strong><\/p>\n Botswana\u00a0is currently not meeting power demand from internal generation and is reliant on imported power at an enormous cost. Without sufficient internally produced power, neighbouring countries effectively control\u00a0Botswana’s\u00a0energy security.<\/p>\n Tlou plans to start with the supply of power to\u00a0Botswana\u00a0followed by expansion across southern\u00a0Africa\u00a0where demand for new sources of cleaner energy is very strong.<\/p>\n\n