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Country Profile: Botswana Energy Sector

November 12, 2024

By Staff Writer | for Moakanyi Magazine

Botswana’s electricity sector is dependent on large scale thermal coal power plants utilizing domestic coal from reserves estimated at 200 billion tonnes. However, demand for electricity often exceeds supply resulting in load shedding, use of back-up diesel power plants, and electricity imports through the Southern African Power Pool (SAPP).

Electricity Demand and Electrification Rates

Over a third of country’s electricity demand is from the mining sector, followed by the commercial sector, the residential sector and then the government. Peak demand has been recorded at 610 MW for the 2014/15 period. The largest share of distributed electricity in 2015 was consumed in the mining sector (34%), followed by the commercial (30%) and residential sector (27%) with governmental usage accounting for 9%.

Access to electricity in Botswana is estimated at 53% of the total population, comprising over two thirds of the urban population, approximately 69%, and 32% of the rural population. In 2015 the national utility reported having over 350,000 customers.

Electricity Generation

Botswana has shifted from a country that was highly dependent on the South African electricity to one that produces a majority of its electricity on its own. However, the country’s coal-based power stations, Morupule A and B, have been facing technical issues with strong implications for electricity production. The Morupule B plant has a name plate capacity of 600 MW, though continues to perform below the capacity factor target of 89%, producing at 66.5% over the latest full reporting period of the Botswana Power Corporation (BPC).

In addition, a series of complications have led to delays in the planned refurbishment of the 132 MW Morupule a Power Station. Shortfalls have been met in part through back up diesel plants, load shedding, and imports from neighbouring countries. The back-up plants Matshelagabedi (70 MW) and Orapa (90 MW) are now owned by BPC, the latter purchased in 2015 following a rental period. Imports represented a significant 42% of national power consumption, totalling 1,509 GWh against total consumption of 3,580 GWh.

At 34%, the South African utility Eskom has become a major supplier of energy consumed in the country, with further Southern African Power Pool (SAPP) inflows from Mozambique, Namibia and Zambia. At least one grid-connected solar PV plant (1.3 MW) was commissioned in Phakalane in 2012, as a result of Japanese-Botswana cooperation.

Transmission and Distribution

The electricity grid in Botswana consists of power lines ranging from 11 kV to 400 kV. At present, power from the existing Morupule Power Station is transmitted via 33 kV and 220 kV power lines. A single 400 kV power line from the Matimba Power Station in South Africa feeds into the Botswana electricity network at the Phokoje Substation. There are currently no specific plans to unbundle BPC, the power utility that oversees the transmission and distribution in Botswana. The main challenges in the electricity transmission and distribution network are a lack of grid access in the Northwest and Southwest Regions.

Electricity Tariffs

Electricity tariffs in Botswana have historically been heavily subsidized, leading to a challenging commercial environment for both the BPC and potential future private developers. The 2015 annual report of the BPC highlights concerns around the current tariff rate and received subsidy from the government in terms of the long-term prospects for the corporation.

Off-Grid Electrification

Off-grid electrification initiatives in Botswana are limited though pilot initiatives have been initiated in the country. The Rural Photovoltaic Electrification Project (Re-Botswana) was initiated under UNDP and ended in 2014. Beyond public sector-driven pilots, there are emerging private installers of isolated systems, ranging from solar home systems through to larger systems powering public institutions and tourist lodges.

Source: Get-Invest.eu

By The Moakanyi Desk

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