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Botswanas electricity utility has signed a power purchase agreement with an IPP for a 6MW coal bed methane power plant pilot project,
Sekaname, signing the PPA yesterday (22 November), makes it the second IPP to develop a coal bed methane power plant in the country (after Tlou Energy).
It will take around 7 to 8 months to develop the pilot plant - building it as funds are raised - at which point implementation means methane being extracted from the coal bed and piped to the 6MW power plant.
Drilling for wells in the concession area started several years ago, at which point the countrys utility Botswana Power Corporation (BPC) installed a 33kV power line to bring electricity to the region. This power line would be the access point for the proof-of-concept power plant to dispatch power to the national grid.
Speaking at the PPA signing, the utilitys CEO David Kgoboko called the contract a "major milestone for the energy sector as we transition from coal-fired power generation systems to a new energy mix comprised of coal, gas solar, wind and others."
He added: "The PPA is for a 6MW coal methane proof of concept project, to be developed around Mmashoro in the central district."
Coal bed methane for dispatchable power generation
The BPC CEO said the use of coal bed methane, which is commonly known as CBM, for power generation is an exciting development for the utility since it provides the desired hybrid with non-dispatchable sources of generation such as solar PV sources.
"Without flexible generation, which coal bed methane provides, the deployment of non-dispatchable solar generation would be limited, so the two will complement each other very well.
"BPC therefore welcomes the support by government to the private sector in development of coal bed methane as one of our primary sources of energy.
"The Botswana Power Corporation will play its role to enable the development of a gas supply industry in Botswana. Sekamane, like other players in the CBM exploration business, is a key and strategic partner to BPC as the successful development of the gas supply industry will ensure the realisation of a secure sustainable energy mix for the country," said Kgoboko. |
