PRESENTATION ON

ELECRICITY SUPPLY IN BOTSWANA

Botswana – China Business Forum

31 August 2018

PRESENTATION PLAN

1. THE ELECTRICITY SUPPLY INDUSTRY IN BOTSWANA

2. ELECTRICITY CONSUMPTION AND SOURCES OF SUPPLY

3. LONG TERM ELECTRICITY DEMAND FORECAST AND GENERATION EXPANSION

4. BOTSWANA’s RENEWABLE ENERGY ROAD MAP (NEW ENERGY MIX)

5. TRANSMISSION INFRASTRUCTURE DEVELOPMENT AND REGIONAL INTERCONNECTION

6. THE SOUTHERN AFRICAN POWER POOL (SAPP) AND ELECTRICITY TRADE

THE BOTSWANA ELECTRICITY SUPPLY INDUSTRY (ESI) OVERVIEW

BPC Generation

IPP Generation

BPC Transmission

SAPP Import / Export

BPC Customer Services & Supply

Electricity End Users

Domestic

Commercial

Government

Mining

Botswana Power Corporation (BPC) (Wholly Owned by GoB)

Regulator Botswana Energy

Regulatory Authority

Key Aspects • Energy Regulator Established in 2017• Private Sector Participation in Generation• BERA Functions Include

✓ Licensing of Entities in Power Sector✓ Tariff Determination ✓ Enforcement of Standards

Mining25%

Commercial34%

Domestic31%

Government 10%

Year 2017'

Mining41%

Commercial24%

Domestic26%

Government 9%

Year 2008'

Year 2008Category Energy (GWH)Mining 1,186Commercial 684Domestic 745Government 274Total 2,889

Year 2017Category Energy Mining 837 Commercial 1,107 Domestic 1,022 Government 314 Total 3,279

KEY STATISTICS: SALES DISPOSITION

1.5% Avg. Annual

Growth

NOTES➢ No. of Customers = 438, 483➢ Access To Electricity = 81.4%➢ Electrification Level = 60.7%➢ Avg. Growth Rate = 1.5% Per Annum

0

500

1000

1500

2000

2500

3000

3500

4000

4500

2 0 0 9 2 0 1 0 2 0 1 1 2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

Ene

rgy

(GW

H)

Period (Year)

SOURCES OF SUPPLY: MARKET SHARE

Imports

Local Generation

Morupule A (Coal)

Morupule B (Coal)

Orapa (Diesel) 90 MW

Matshelagabedi (Diesel)

Morupule A (4X33MW)Commissioned 1986/9

Morupule B (4 X150MW)Commissioned 2012/13

Orapa (2X45MW)Commissioned 2011

MatshelagabediCommissioned 70MW – 2010

Local Generation

16%

Imports 84%

2009

Towards Self Sufficiency

BOTSWANA SOURCES OF ELECTRICITY

Local Generation

78%

Imports 22%

2018

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

-

200

400

600

800

1,000

1,200

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Ene

rgy

(GW

h)

De

man

ad (

MW

)

Year

Botswana Electricity Forecast (Demand & Energy) (2018 - 2030)

Energy Forecast Demand Forecast

ELECTRICITY DEMAND FORECAST (2018 – 2030)

GROWTH RATES

• Capacity (MW) = (3-5)%• Energy (MWH) = (1.5 – 3) %

GENERATION EXPANSION PLAN (2018 – 2030)

Generation Plan (2018 – 2030)No. Source Remarks

1 Morupule A (Existing) 132 MW, Period 2018 – 20332 Morupule B (Existing) 600 MW, Period 2012 – 20423 New Capacity (Future) 300 MW, Period Post 20234 Solar PV (Future) 100 MW , Period 2021 Onwards

0

200

400

600

800

1000

1200

1400

2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030

Capacity Plan 2018 to 2030

Morupule A Morupule B New Capacity Solar PV - No Storage Imports Diesel Emergency Peak Demand

Green Energy Storage

Solar PV Plant

8

RENEWABLE ENERGY ROAD MAP: TORWARDS A NEW ENERGY MIX

50 MW PV Solar Plant

Solar PV Hybrid Off Grid (Remote Villages)

Grid Connected (1- 5MW) Solar PV Plants

Renewable Energy Road Map

1. 100MW Solar PV (2X50MW) Procurement of Developer In

progress (Open Tender). Commercial Operation 2021

2. 12 X Grid Connected PV At Tender Stage - Developer

Selection Commercial Operation

2020/21

3. 20 Solar PV Off Grid for Villages At Inception Stage

GABORONE

Francistown

MAUN

Selebi-Phikwe

S O U T H

A F R I C A

Z I M B A B W E

N A M I B I A

Matimba P/S

Thamaga

2x2

15

km4

7km

51km

Tsabong

52km

Morupule A

220kV

400kV

132kV

Phokoje

ORAPALetlhakane

Substation

Tati30km

Morupule B

Katima

Lobatse

Kasane

Bulawayo

Spitzkop

Jwaneng

33kV

Sowa

Mowana

Pandamatenga

HwangeVictoria

ZAMBIA

BPC TRANSMISSION PLAN

To Auas

348km

Kanye

Livingston

Proposed Existing

Molepolole

Heuningvlei

Omaere

Orapa – 90MW

SHAKAWESamochima

Substation

TOTENGLegotlhwane

Substation

330kV

GANTSI

GUMAREMakoba

Substation

NWTGC PHASE 1

Note : Map not to Scale. Only for guidance purpose

Watershed

Dukwi

Substation

Substation

NWTGC PHASE 2

BOTSWANA’S TRANSMISSION GRID INVESTMENTS

1. North West Transmission Grid (Phase 1) Construction In Progress Completion Dec 2019

2. North West Transmission Grid (Phase 2) Project Specification and

bid documents in place Funding to be Secured

3. ZIZABONA INTERCONNECTION Sponsors (Power Utilities)

to Secure Funding

ZIZABONA

BOTSWANA’S TRANSMISSION GRID INVESTMENTS

ELECTRICITY TRADE IN THE SOUTHERN AFRICAN POWER POOL

ABOUT SAPP

➢ Established in 1995 by SADCMember Countries

➢ Governed by 4 Agreements(2X MOUs, ABOM, GridOperating Guidelines)

➢ 16 Members (National PowerUtilities, IPPs & ITCs)

➢ Objective: Grid Reliability,Quality of Supply,Harmonized Trade Relations.

ELECTRICITY TRADE MECHANISMS

➢ Bilateral Contracts (CrossBorder PPAs).

➢ Competitive ElectricityMarket✓ FPM-M✓ FPM-W✓ Day Ahead (DAM)✓ Intra Day (IDM)

➢ Transmission Wheeling

SAPP TRADE STATISTICS FOR 2017 Financial Year

Market Volume Share Energy Cost Other CostsBilateral Contracts 7,991,617 MWH 88.7% N/A N/ACompetitive (Short Term Energy) 1,023,056 MWH 11.3% USD 55.6 Million USD 20.2 Million

CONCLUSOIN

1. Electricity Supply In Botswana Is Dependable And Readily Available For Business Operation

2. Power Supply Plans Are In Place for Long Term Security Of Supply

3. Electricity Pricing Is Through Regulation By The Botswana Energy Regulator (Consumer Protection)

For More Information on Electricity Supply in Botswana Visit Our Web Site:

www.bpc.bw

For Information on the Regional Power Supply Outlook, Visit The Southern African Power Pool Web Site:

www.sapp.co.zw

Contact Information: Email: RugoyiE@bpc.bw

END

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