Botswana Power Company

BOTSWANA POWER CORPORATION

COMPANY PROFILE

2013

Opportunities arising in the Kalahari?

Power generation has been a long-standing problem for southern Africa and Africa as a whole. Although advancements over the past two decades have seen a significant increase in the amount of people with access to power, there still remains a surplus of demand against supply with populations and infrastructure growing and power supply struggling to keep up.

Traditional power sources, namely coal, still accounts for the majority of electricity generation but in the last five years there has been steps taken towards other sources of energy. Nuclear, solar, wind and hydro power have all been explored and

implemented in southern Africa, and in many cases the projects have been successful. South Africa especially has seen a huge drive towards renewable energy with solar farms being constructed in the Northern Cape and major wind farms in the Eastern Cape. Hydro power is also being imported from the DRC and the Koeberg nuclear power station operates near Cape Town.

In Botswana, power generation is a different story. The government has been criticised along with parastatal organisation Botswana Power Corporation (BPC) for failing to meet demand and allowing new projects to slip past deadlines too easily.

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Editorial – Roland Douglas Production - Chris Bolderstone

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Opportunities arising in the Kalahari? The BPC is currently working hard to complete the Morupule B power station on time. While the country relies on coal and imports for its electricity generation, it is clear that other opportunities will need to be explored to secure a long-term, sustainable supply in Botswana.

However, since its inception in 1970 BPC has increased connectivity to the national grid in a big way, improving the lives of thousands of villagers, taking on economic and financial pressures at the same time.

A LONG HISTORY The BPC was formed after a Parliamentary Act was passed in 1970 which made the organisation responsible for the generation, transmission and distribution of electricity within Botswana to areas approved by the Ministry of Minerals, Energy and Water Resources.


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In the early days, the organisation oversaw a small, oil-fired power station in Gaborone which was commissioned in 1970 and dismantled in 1989. Even this was a jump forwards for the capital city, home to the majority of the 600,000 population, which pre 1970, was powered mainly by diesel generators.

With the population sitting at over two million (2010 est.), the challenge for BPC has been to supplement the substantial amount of electricity generated by the Morupule station; said to be only around 20% of the country’s requirement.

Morupule power station was commissioned in two stages with the latest generator being commissioned in March 1989.The power station employs highly technological control systems and operates with a dry cooling method, in so doing conserving water resources. Before commissioning of Morupule power station in 1989, BPC generated electricity from the coal-fired Selebi Phikwe power station which was commissioned in 1974 and was decommissioned in 1989.

Creating the 80% balance to meet demand is where the organisation has found problems, and solutions to date have mainly come through importing electricity from neighbouring countries.

SAPPThe Southern African Power Pool (SAPP), formed in 1995, is a cooperation of the national electricity companies in southern Africa under the umbrella of the Southern African Development Community (SADC). The members of SAPP have created a common power grid between their countries and a common market for electricity in the SADC region.

Member nations of the SAPP include Angola, Botswana, DRC, Lesotho, Mozambique, Malawi, Namibia, South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. South Africa is by far and away the leading electricity producer with Zambia and Mozambique second and third respectively.

Eskom, South Africa’s state electricity company, has sold power to Botswana and the country has developed a new power station, Morupule B, which when fully operational will be able to return the favour and sell power back to South Africa.

Botswana has significant coal reserves, reportedly around 200 billion tons, and in 2002 the Morupule Colliery, the country’s only coal producer, fashioned nearly one million tons so coal-fired power stations make a lot of sense with the government and investors also looking at exporting coal to international markets.

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Director of generation for BPC, Edward Rugoyi says of the existing Morupule power station: “The station con-sumes in the order of 560,000 to 630,000 tons of coal per annum depending on the availability of the plant,” highlighting the facility’s reliance on the fossil fuel.

There are plans afoot to either redevelop and refurbish the existing Morupule station or lease it to private developers. While government money has been set aside for redevelopment, it is not the P500 million needed to fully complete the renovations leading speculators to believe that leasing could be the favoured option.

“It is required that the ability of the company or consortium to raise project finance is adequately demonstrated as part of the financing plan,” the BPC told Mmegi Online.

MORUPULE BMorupule B will be a 4x150mw coal-fired power station and main construction began in 2010 and progressed well throughout its first two years hitting only minor set-backs. The company said of the project in its annual report: “The 400kV transmission lines from Morupule B to Phokoje and Morupule B to Isang together with the new Isang 400kV/220kV substation were approved for construction during 2011 and construction at all of these sites is in progress. The five km water supply pipeline project from Morupule Colliery entered into the construction phase during 2011 and progressed well, with the project for the equipping of the Mmoshoro wellfield and the associated 80km water supply pipeline to Morupule B has entered the final procurement processes.”

Minister of Minerals, Energy and Water Resources, Kitso Mokaila, recently published an external overview of the Morupule B construction process, highlighting the fact that the project is the largest and most complex project that has been undertaken in Botswana, with a total cost of P11.1 billion (R12.5 billion), including the associated infrastructure.

In the report he commented on each of the four units under construction coming to the following conclusions:

“Unit 1 was shut down on January 15, 2013 to attend to some teething problems such as steam leaks, air leaks, operational problems in the limestone system and some ash system leakages. The new report states that this unit will be ready by mid-March as indicated by the contractor.

“Unit 2 was shut down on January 16, 2013 on

account of a water leak inside the boiler sub systems. It is also expected to be complete by mid-March.

“Unit 3, the unit that is currently generating power, is connected to the BPC transmission system and completed the prescribed tests on February 26, 2013.

“Unit 4 is still under construction. Some commissioning activities are also undergoing construction while most of the remaining work entails insulation. All works at height were suspended for safety reasons in October 2012. The contractor is forecasting synchronisation to happen in March 2013 and thereafter Unit 4 will undergo prescribed tests before being declared ready for commercial use.”

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Although after tests, Units 1, 2 and 3 will be available for operation, the contractor, China National Electric Equipment Corporation (CNEEC) and Shenyang Blower Works Electro-Mechanics Import and Export Co. Ltd (SBW), collectively referred to as CNEEC-SBW Consortium, has no obligation under the existing contract to operate the units, which is why there are on-going discussions to have the units in full operation while conditions for taking over are being fulfilled.

Morupule B is expected to be operational at the end of July this year and this will relax reliance upon imports from Eskom. Since the start of this year, Eskom has availed 100mw on a firm basis and 200mw on a non-firm basis but it is thought that usage of imported electricity will decline along with the intermittent power shortages that have been experienced, when Morupule B is fully commissioned in July.

BPC is investigating the potential for further coal-fired power stations but as for other sources of power, this is an area with mass opportunities for someone to take advantage of.

ALTERNATIVE SOLUTIONSWhile the average wind speeds are too faint for a significant wind power industry, sunlight burns brightly and some of the highest levels of solar insolation (a measure of solar radiation energy received on a given surface area) in the world have been recorded in Botswana but there is currently no noteworthy solar energy power generation system being used in the country.

One of the big stories surrounding the BPC in March was a report that suggested that the organisation had failed in a bid to draw up a PPA (Power Purchase Agreement) with local power developer Karoo Sustainable Energy (KSE), an agreement that would have seen 180mw of coal bed methane supplied to KSE from the Mmashoro power station.

At a coal conference last month, Kalahari Energy (KSE’s holding company) chairman, Julian Scales told delegates: “I’m still waiting for the PPA, that has passed every single obstacle, to be signed. It’s a very, very sore point. In these times of power shortages, we are sitting there with gas not knowing what to do with it.”

“As government, we have been telling them [KSE] that we need a statement of the resource position for

us to commit to a PPA,” said Coal Development Unit coordinator, Ezekiel Moumakwa, seemingly closing the door on another potential energy deal, at least for now.

KSE had planned to spend P189 million on exploration and production of gas, and another P150 million on capital investments and equipment, last year on the project.

The Mmashoro power station is planned to be the same in design and technology as the 90MW Orapa plant, with four x 45mw General Electric turbines powered by Coal Bed Methane. KSE is running the Orapa power station under an asset management agreement with the BPC.

The ideas of natural gas and solar power are clearly ones that need to be explored in Botswana. While the country can, for now, rely on its coal to generate electricity, in the longer-term fresh approaches to energy need to be explored, and this opens the door for whole new industries to be created, industries that will benefit the entire economy. .

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ZIMBABWE ELECTRICITY TRANSMISSION & DISTRIBUTION COMPANY

SUPPORT SERVICES In addition to transmitting and distributing electricity within the country, the Zimbabwe Electricity Transmis-sion & Distribution Company (ZETDC) also offers support services to the mining and other sectors of the economy. The company being the leading Electrical Power Company in the country it has qualified, com-mitted and competent staff to execute their assignments diligently.

These support services are in two categories:1. Condition monitoring (transformer oil

analysis and infra-red thermography) 2. Protection system services.

The company provides oil testing and analysis to current and prospective customers making results of the sample analysis available within the shortest period possible depending on the tests that are required by the customer at very competitive prices.

By analysing the gases dissolved in transformer oil, potential transformer faults can be avoided. The distribution of these gases can be related to the type of electrical fault and the rate of gas generation can indicate the severity of the fault. The identity of the gases being generated by a particular unit can be useful

information in any preventive maintenance program. Oil condition monitoring is useful as a diagnostic tool. The technique can be used to prevent unplanned outages and catastrophic failures, which besides causing exposure to equipment failure results in business interruptions and losses to the company.

Through the Dissolved Gas Analysis Technique ZETDC will provide its clients with professional technical reports on samples provided and give recommendations on further action to be taken. The regular monitoring of the condition of transformer oil in an energised transformer facilitates the following:

. Insulating integrity monitoring and. Defect monitoring

Advantages for analysing transformer oil gases are as follows:

. Advance warning of developing faults. Determining the improper use of units. Status checks on new and repaired units. Convenient scheduling of repairs. Monitoring of units under overload. It helps to reduce the heavy cost on replacement of material.. Quality of insulation can be checked out.

The routine condition monitoring of transformer oil in energised transformers also involves testing for Moisture, Acidity, PCBs, Flash Point, Tan Delta, Dielectric Strength and Interfacial Tension to give a complete comprehensive analysis of the equipment condition. The well-equipped ZETDC laboratory has performs transformer oil analysis throughout the transmission and distribution networks and for other clients locally and across the borders of the country.

ZETDC also uses Infra-red thermography in condition monitoring which is a unique non-destructive, non-contact, predictive maintenance technique which monitors thermal signatures of plant machinery and electrical equipment. The technique detects abnormal temperatures on:

. Electric panel boards . Electric motors. Furnaces. Transformers . Switchgear. Boilers . Power cables . Refrigeration systems . Generators among other equipment.

The thermal signatures captured are used for detecting “hot spots” or thermal differences that indicate potential problems with equipment in full operation so that production is not interrupted. Some faults can be detected up to 3 months before they can halt production. The comprehensive thermal information can then be used to:

. Evaluate the scope of the problem . Predicting when to take preventive action. Prepare repair/cost estimates. Plan to have repair materials on the site prior to starting repairs. Perform repairs effectively in order to

return equipment to service quickly

As with transformer oil analysis clients are given professional technical reports on what needs to be done. In cases of abnormalities clients are informed on the spot so that corrective measures can be taken immediately.

ZETDC, through its Power System Protection Business Unit, also offers specialist services on electrical power systems protection in Zimbabwe and the SADC region.

The company has the equipment and skill to maintain all types and forms of relays from electromechanical to numeric relays and from simple auxiliary relays to complex distanceprotection schemes. Recent installations and commissioning have involved numeric relays e.g. REL, SEL, and SIPROTEC IEDs. ZETDC tests primary equipment such as:. Current and voltage transformers. Circuit breakers . Power transformers . Generators among other related equipment after maintenance or before being put into service.

The company also carries out site commissioning of substation equipment, generation and industrial plant and protective systems up to 420kV. State of the art technology is used with automatic reports generated in software e.g. OMICRON-CMC256, MEGGER Transformer Turns Ratio Test Equipment.

Design and modifications of protection and control schemes for distribution, sub-transmission and transmission substations, generation stations and industrial plant is also done by ZETDC.

Specification of protection and control for transformers, static var compensators, capacitor banks, transmission lines, bus bars, motors and switchgear of any size and type. Protective systems can also be installed on behalf of the customer.

ZETDC does facets associated with power system analysis such as fault level calculations, stability fault and transient analysis, power quality and systems refurbishment and spares recommendations. Protective relay co-ordination and determination of relay settings. We can also manage customer databases with respect to protective systems. The organisation offers Engineering Services including factory acceptance tests. ZETDC uses state-of-the-art analysis, design, measurement and test equipment and tools.

Key features of our protection services includes:

. Responding to requests for testing and breakdown and maintenance within the shortest period possible. Flexibility allowing us to fit well in projects scheduling. A well-documented quality control and assurance program . Test Centres distributed throughout Zimbabwe.

(0)1603 618 000

[email protected]

East Coast Promotions Ltd, Ferndale Business Centre, 1 Exeter Street.Norwich, NorfolkNR2 4QB

www.bpc.bw

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Botswana Power Company