Tlou Energy Limited and the Botswana Power Corporation (BPC) have signed a 10MW Power Purchase Agreement (PPA). Under the terms of the PPA, BPC will purchase up to 10MW of power generated at Tlou’s Lesedi power project.
The PPA is for an initial five-year term with the 10MW project being the first phase of Tlou’s planned power project expansion.
The Company would like to thank to all those involved in this process and the Government of Botswana for their support of the industry.
“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,” Tony Gilby, Tlou’s Managing Director, said.
“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.This is great news for the Tlou, our shareholders and for Botswana. After a long wait we can now look forward to getting the project up and running.”
Lesedi Power Project
Lesedi is the Company’s most advanced project and is located in Botswana’s Central 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 Botswana Power Corporation. Once in full production, 10MW of generation could provide annual revenue of approximately US$10m