Tuesday, October 20, 2020

Shumba Coal plans to tap into regional energy market

Shumba Coal (Pty) Ltd has officially announced that it can spare for export part of the electricity from its 300 megawatt (MW) from the upcoming Sechaba Energy Project (SEP), which is adjacent to Morupule.

The Botswana Stock Exchange listed resources explorer is in the process of fathoming out on how best the export deal intended to tap into the insatiable regional market, could be meticulously executed to the benefit of both parties, Shumba Coal management stated in a note to the BSE.

Having completed the scoping feasibility analysis into transmission teething technicalities, Shumba Coal’s export strategies are at high noon.

The feasibility analysis aims to increase the export volume through doubling generation capacity and increasing exports by 100 percent. Regional countries designated to benefit from the electrical power exports include Namibia, South Africa and strife-torn and impoverished Zimbabwe.

The majority citizen-owned company intends to join the monetisation bandwagon of energy developers such as African Energy and Jindal to benefit Botswana’s estimated 212 billion tons of coal through exports.

The 300MW SEP power station will feed into the Botswana Power Corporation’s (BPC’s) 400kV high-voltage transmission grid at Morupule B 400kV sub-station.

The Botswana power transmission grid is interconnected via Phokoje substation to South Africa at Matimba and Zimbabwe at Insukamini at 400kV. This is linked to the Southern African Power Pool (SAPP) was created with the primary aim to provide reliable and economical electricity supply to the consumers of each of the SAPP members, consistent with the reasonable utilisation of natural resources and the effect on the environment.

According to current statistics, Shumba Coal’s energy exports designed to alleviate power shortages in Namibia, South Africa and Zimbabwe falls well below peak demands of 611 MW, 36, 664 and 2, 029, respectively. Therefore, the exports will be equivalent to tiny water drops in the ocean of power outages.

Results of the study, according to the company show that transmission costs of SEP exports are lowest for South Africa and Zimbabwe markets and higher for export to Namibia. It was also established that there are no expected system constraints to address on the interconnections to South Africa and Zimbabwe that require investments or other interventions.

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