South Africa’s power utility company Eskom has signed an agreement with Botswana Power Corporation (BPC) to supply power to Botswana for the next three years.
“The conclusion of this agreement serves to demonstrate our commitment to the SADC region to provide energy security and certainty with regard to long-term supply of energy,” Eskom’s Interim Group Chief Executive Matshela Koko said.
The company plans to increase its electricity exports to countries neighbouring South Africa. Eskom recently concluded a five-year power sale agreement with Namibian national power utility company, NamPower.
Koko added that Eskom is ready to undertake long-term supply agreements for up to 10 years.
BPC’s Dr.Stefan Schwarzfischer said the power agreement with Eskom would improve BPC’s supply and give it an opportunity to solve the challenges facing its generation plant.
Eskom and BPC are long-standing energy trading partners. The transmission corridor between South Africa and Botswana provides a key corridor for energy trading for the Southern African Power Pool (SAPP).
Integrated into the wider SAPP network, the South Africa-Botswana corridor provides a facility for various SAPP utilities to exchange power.
Eskom is currently investigating strategic transmission projects to further strengthen the interconnection with BPC and other interested SAPP members with the intention to further support regional integration, provide reliable transportation of power to grow the regional economy and improve the connection between the thermal and hydro systems in the region to mitigate the risk of drought.