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Morupule Coal-fired Power Generation Expansion Project. By Chandapiwa Macheke Martha S. Kelesitse. Introduction. Country background information The project . Country information. Economic overview. Economic growth of the country. Political stability.

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Morupule coal fired power generation expansion project l.jpg

Morupule Coal-fired Power Generation Expansion Project


Chandapiwa Macheke

Martha S. Kelesitse

Introduction l.jpg

  • Country background information

  • The project

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Political stability

  • The Constitution of Botswana established a nonracial democracy which maintains basic freedoms.

  • One party (BDP) has been in power since independence.

  • Elections occur regularly (every 5 years) with many political parties (15) competing for leadership.

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Botswana and the UNFCCC

  • Party status: UNFCCC – January 1994

  • Kyoto Protocol – July 2004

  • Reporting: INC – at COP-7 (2001 October)

  • Projects:

    • US Country Study Programme

    • Enabling Activity ($350 000)

    • Top Up ($100 000)

      • Preparation of TNA report

      • Capacity building of relevant government institutions, NCCC and DMS

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Brief overview of the TNA report cont

  • Major findings

    • Potential for EST in coal application and biogas

    • Abundance of solar

    • Wastewater from water treatment plants.

    • Wind technologies

    • Energy efficiency

    • Treatment of brackish water

    • Agricultural technologies

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Botswana Power Corporation

  • Botswana Power Corporation (BPC) is wholly owned by the Government of the Republic of Botswana.

  • Utility was established by an Act of Parliament.

  • BPC responsible for the generation, transmission and distribution of electricity in Botswana.

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Project Background

  • BPC currently owns and operates 132 MW mine-mouth, dry cooled power plant at Morupule.

  • Morupule Power Station is situated near Palapye, in the Central District of Botswana.

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Project Background (cont..)

  • Current system peak demand is 434 MW.

  • Demand satisfied through internal generation at Morupule ( net 120 MW) and imports.

  • BPC has Power Purchase Agreement (PPA) with Eskom which expires in Dec. 2007, for firm imports of up to 410MW.

  • The Southern African region faces diminishing surplus generation capacity, which is expected to be exhausted by 2007/10.

  • BPC is an active member of Southern African Power Pool (SAPP).

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Project Description

  • BPC commissioned a generation expansion feasibility study.

  • Study recommended implementation of 400 MW by 2009/10, and a further 100 MW in 2018, and final 100 MW in 2023.

  • The project will be accommodated within the existing property at Morupule Power Stn.

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Project Description (cont..)

  • As part of the feasibility, a coal resource assessment was done.

  • A 25 year mine plan developed indicated a resource in the order of 150 million tones of coal available. (national reserves – 32 billion tonnes total)

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Project Description (cont..)

  • Nature of the coal is sub-bituminous with sulphur content averaging 1.5 %, ash content of 21%, moisture 4%, and ave. CV of 23 MJ/kg.

  • The base case for this project is conventional pulverised coal-fired boilers with ESPs.

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Technical Aspects of the Project

  • The project is intended to immediately generate additional 400 MW from 4 x 100 MW units with a design life of 25 years.

  • The EIA scoping study for the project has been completed.

  • As a mitigation measure, the environmental performance of the project could be improved through use of cleaner coal technologies.

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Technical Aspects of the Project (cont.)

  • We need technologies that reduce the quantities of emissions(NOx, SO2, particulates) including high efficiency technologies for coal to electricity conversion process (reduction of CO2, NOx).

    • Coal cleaning, low-NOx burners, scrubbers, Electrostatic Precipitators.

    • subcritical pulverised fuel, atmospheric fluidised bed combustion.

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Finance/Economic Aspects of the Project

  • The current legislative framework does not allow direct private equity participation into BPC.

  • BPC intends to finance the project partly through equity, and balance through debt/grants.

  • The project (400 MW) is planned as follows:

    • 2009: 1st Phase – 2 x 100 MW

    • 2010: 2nd Phase – 2 x 100 MW

    • Estimated cost of 4 x 100 MW units – US$600 million and unit cost of US$1,500/kW.

    • Expected year of project commencement – 2006

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Finance/Economic Aspects (Cont…)

  • The cost estimate include capital and all soft costs (project management costs, financial costs, interest during construction.

  • Employing high efficiency boilers or other cleaner coal technologies, costs could range US$800-1000 million for 600 MW new capacity.

  • The cost and access to these technologies is a barrier.

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Finance/Economic Aspects

  • The capital cost estimates, indicate that an electricity price of US 2.75 c/kWh (BWP 13.75 thebe/kWh) at the power station busbar is sufficient to cover the total cost of the expanded power station over a 25-year design life period.

  • Currently, the cost of generation stands at BWP 9.50 thebe/kWh (US 1.90 c/kWh) as compared to the price of imports at BWP 11.50 thebe/kWh (US 2.30 c/kWh).

  • Indications are, expanding Morupule will have smaller impact on tariffs than continued imports from Eskom.

  • Therefore, from an economic, financial and tariff impact perspective, the project is feasible.

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Morupule Power Project

Engineering, Procurement and Construction Contracts

  • Once contracts for owners engineer and financial advisor in place, the procurement process for civil, electromechanical contracts, etc will be initiated

    Big Question…

  • How can BPC Project benefit from UNFCCC mechanisms?

  • How the UNFCCC process can assist BPC in the selection of the technological options?

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Thank you

[email protected]

[email protected]