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Tlou Awards Tenders for Transmission Line and Substation Construction

Wednesday, April 14, 2021

Tlou Energy has awarded tenders to Zismo Engineering (Pty) Ltd for the construction of the overhead lines and to OptiPower for construction of substations at its Lesedi and Serowe projects in Botswana.   construction. The company plans for construction to begin as soon as possible.

The Lesedi project is located approximately 100 Km from the existing electricity grid in Botswana. The first stage of development will be the erection of wooden poles fitted with an overhead 66kV transmission line. Substations will be installed at Lesedi and Serowe. The Lesedi substation will integrate the generation assets with the transmission line and the Serowe substation will tie in with Botswana Power Corporation’s existing infrastructure.

The transmission line route has been surveyed and full environmental approval is already in place. The line will predominantly cross flat, arid terrain with the last ~5 Km being through the outskirts of the Serowe township.

The transmission line and substations are vital elements of the first phase of the Lesedi project development. Key stages to achieve first revenue are as follows:

  1. Construction of the transmission line to connect Lesedi to the existing power grid;
  2. Installation of substations at the Lesedi site and at Serowe to integrate with the grid;
  3. Installation of generation assets at Lesedi;
  4. Commissioning and testing;
  5. Sale of first power.

Construction of the transmission line is a very significant step forward as it enables Tlou’s gas field and solar potential to supply power into a potentially enormous market.

Tlou’s Managing Director Tony Gilby said: “We are delighted with the response to our tender and look forward to working with our new local contractor Zismo and OptiPower, to connect our Lesedi power project to the grid at Serowe. The proposed transmission line is the key to unlocking our independently certified gas reserves and contingent resources as well as our solar potential. The local and broader market is significantly short on sources of cleaner energy and Tlou’s projects aim to be a significant supplier over time.

“Our objective remains on track to start production with a measured approach in order to minimize risk and cost of capital. Once the initial gas and solar production is up and running, modular and low risk expansion is the objective.

“The as-yet un-tapped gas that the company has proven to exist within its 100% owned ~9,000 sq km represents an enormous cleaner energy resource for the region. When combined with Tlou’s solar generation plans, which are predicated on producing solar power from a region with known high solar incidence, this should continue to provide significant upside for shareholders and Botswana alike. With funds in place to commence construction, we intend to start work on the ground as soon as possible and thereby begin to unlock Tlou’s potential.”


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