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Publish Date : 17-Mar-2016

Botswana-listed junior coal miner, Shumba Energy, said that the South African government and regulatory bodies are seeking to procure cross-border electricity.

Mainly Shumba Energy is referring to the decision of the Minister of Energy, together with the National Energy Regulator of South Africa (NERSA), for ascertaining the terms for cross border electricity procurement.

The South African Department of Energy will handle the responsibility of selecting and procuring IPP programmes targeting connection to the grid with a specific additional generation capacity of 3 750 MW from coal. The electricity must be procured directly from IPPs by Eskom Holdings or by any successor entity to be nominated by the Minister of Energy.

Mashale Phumaphi, MD at Shumba Energy, said, The management and board of Shumba Energy have based the companys projects investment plan and associated project development programmes upon the key strategic understanding that cross-border energy demand would eventually become a reality within the southern region of Africa.

The Mabesekwa Export IPP in the northeast of Botswana and the Sechaba Coal IPP near Palapye are considered by Shumba Energy as two of its advanced baseload coal-fired energy projects suitable for cross-border energy procurement. Location of these two projects are ideal to handle the complete investment necessary to provide bankable energy to the cross-border grids of southern Africa.

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