The Botswana electricity industry could earn revenues of up to $170-million a year by 2015 and grow at a compounded annual rate of 4,8% between 2006 and 2015, a Frost & Sullivan research note asserts.

During 2007, the industry earned revenue of $121-million.

“The Botswana electricity industry will remain robust despite a projected decline in revenues in 2008 as a result of a considerable reduction in electricity imports,” notes Frost & Sullivan energy industry analyst Jeannot Boussougouth. 


“As the Botswana Power Corporation (BPC) shifts its focus from essentially being an electricity importing utility to a major electricity producer, earnings will increase tremendously.” 

The BPC recently embarked on a significant capital expenditure programme for a phased expansion of its sole power station and the introduction of independent power producers 
in the country.

BPC is expanding the Morupule power station, with 400 MW of generation capacity expected to be added by 2012. This, combined with the start of operations at CIC Energy’s resized Mmamabula project, should help generate solid revenues in the country’s electricity industry.

“The commissioning of the Mmamabula project and the potential of Saber Energy

Corporation’s 1 000-MW gas-fired station in the Kalahari by 2011 will sustain growth in both the supply of electricity and revenues generated,” explains Boussougouth. 


“However, this would depend on CIC Energy’s ability to reach financial closure on its $3-billion Mmamabula integrated coal mine and energy project. It remains to be seen if this will be achieved owing to the challenges posed by the prevailing global financial crisis.”

Revenues from the sales of electricity are 
expected to reach $130-million in 2010, under-
lining how the expansion of the Morupule power station will lift the country’s electri-city industry. This will be compounded by the expected incremental increase of electri-
city tariffs and the sustained demand for electricity, which is currently growing by 6,5% a year.

The mining sector is the most 
important consumer segment in Botswana in terms of electricity consumption. It accounts
for about 45,1% of BPC’s total electricity consumption in 2006.

However, the effect of the current credit crunch is already being felt in the sector as the demand for commodities worldwide and their prices continue to contract.

“The continuous slump in the demand for key commodities such as nickel and copper is having a negative impact on mines in Botswana,” Boussougouth says.

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