Botswana’s Minister of Minerals and Energy, Bogolo Kenewendo, is in South Africa for a three-day working visit aimed at resolving his country’s energy challenges.
Kenewendo is scheduled to meet with South Africa’s Minister of Electricity and Energy, Dr Kgosientsho Ramakgopa, in Johannesburg today to renegotiate the existing power purchase agreement.
The talks aim to secure reduced electricity rates and ensure a stable, reliable power supply for Botswana in the short to medium term.
“We hope, Mr Speaker, that with our deliberations with the South African Minister of Electricity, Ramakgopa, to renegotiate a new power purchase agreement between Botswana and South Africa.
“We would achieve reduced rates that will assist us in managing costs. But most importantly, that we engage on a constant and stable supply from imports during the short to medium term,” Kenewendo stated in an address to Botswana’s parliament.
The visit underscores Botswana’s urgency in addressing its power shortages and stabilising its energy future.
Botswana’s power crisis
Breakdowns at Botswana’s 600-megawatt Morupule B power plant have led to power cuts lasting up to four hours.
To bridge the gap, South Africa’s state-owned utility, Eskom Holdings SOC Ltd., has been supplying electricity.
However, Botswana’s energy minister, Bogolo Kenewendo, told lawmakers on Monday that Eskom has significantly increased tariffs by 166%.
Due to increased electricity importation, Botswana’s debt to Eskom has risen to 2.6 billion pula ($189.5 million), with the South African utility pushing for settlement ahead of the talks that will take place Thursday, Kenewendo added.
What does Botswana want?
In addition to renegotiating a new power purchase agreement, Botswana wants to secure 200 megawatts of supply from South Africa, and it’s also issuing a tender for 1.5 gigawatts (GW) in renewable energy.
Minister Kenewendo also said the country is also putting together a rescue plan for the Botswana Power Corporation that involves debt restructuring.
Meanwhile, country’s power corporation recently announced that the Morupule power station has been restored with an increased generation capacity of 235 MW.
Morupule 2, Unit B is scheduled to be back in full operation later this month on the 17th.
Despite this, power cuts will still be implemented as the country’s electricity demands reaches 640 MW at peak hours, far above current supply rates.
Two diesel-powered power plants provide a total of 130MW for use during the crisis period, as well as a new 50-megawatt solar installation.
Earlier last month, Botswana was considering building a new 615-megawatt coal-fired power station near Morupule power plant to mitigate generation challenges at the facility but no plans have been made towards that.
