Botswana: Botswana Energy Profile

Botswana, officially the Republic of Botswana, is a country located in Southern Africa. The citizens are referred to as \"Batswana\" . Formerly the British protectorate of Bechuanaland, Botswana adopted its new name next becoming independent within the Commonwealth on 30 September 1966. It has held free and equitable democratic elections since independence.

Geographically the country is flat and up to 70% of Botswana is covered by the Kalahari Desert. It is bordered by South Africa to the south and southeast, Namibia to the west and north, and Zimbabwe to the northeast. It meets Zambia at a single point. A mid-sized, landlocked country of just over two million people, Botswana was one of the poorest nations in Africa at the time it gained independence from Britain in 1966, with a GDP per capita of about US$70. Botswana has transformed itself, moving into the ranks of middle-gain status to become one of the fastest growing economies in the world with its average annual increase rate of about 9 % with a GDP (purchasing power parity) per capita of about $14,800 (2010 IMF estimate).

Botswana’s impressive track record of good governance and economic increase, supported by prudent macroeconomic and fiscal management, stands in contrast to the country’s high levels of poverty and inequality and generally low human development indicators. While education spending is high at 10 % of GDP and significant educational achievements have been attained, inclunding the provision of nearly universal and free education, in general outcomes have not created the skills and workforce Botswana needs.

Unemployment has been persistently high at near 20 %, household incomes are much lower in rural than in urban areas (HIES 2002/03), and, while rural poverty rates have fallen, they remain significantly higher than in urban areas. The rate of HIV/AIDS infection has declined as a result of the government\'s aggressive introduction of anti HIV/AIDS drugs which are provided free of charge to the citizens. As one of the world\'s fastest growing economies, Botswana is trying to diversify its economy which is heavily dependent on diamonds, beef market and tourism; which amongst other things is the proposed innovation hub project which will catapult the country to the world of innovations and innovation technology and researches in line with other institutions both local and international. Other minerals are soda ash, copper and nickel matte, gold, and coal.

Energy sources

Total installed electricity capacity (2008):  132 MW

• Thermal (mainly coal): 100%.

Total primary energy supply (2009):  2,048 ktoe

• Oil: 47.7%
• Coal/peat: 25.4%
• Comb. renew & waste: 26.8%

Electricity generation has been dominated by an overdependence on coal as a primary source of energy, largely because of its abundance and alleged cost-effectiveness. Botswana has an estimated 212.8 Billion metric tonnes of coal reserves found in various locations, although only the reserves at Morupule are being mined for electricity generation. Morupule Power Station, near Palapye, accounts for 80% of domestic production.

Botswana, like many African countries, has a consistent electricity deficit, which peaked in 2008 at 1174.83 Kilo-watts (KWh) per capita. This is due to declining electricity generation and a persistent increase in electricity consumption.

LPG
LPG is steadily gaining in popularity in the low-income households because of convenience, and because of localized scarcity of wood fuel.

Reliance

To date, Botswana has principally relied on imports to meet its growing demand for electricity. In 2008 its peak demand reached 500MW and is projected to be around 600MW in 2012. Botswana, like several other countries in the Southern Africa sub region, relies on inexpensive, abundant, and reliable electricity from South Africa. In recent years, around 80% of electricity is imported, of which 70% is from the national electric utility of South Africa, Eskom. In 2008 alone, Botswana imported about 2440 GWh, 67% of its power requirements, from Eskom. While its own small 25-year-old coal power plant (Morupule A, 4 x 33 MW) provided about 22%.

All of Botswana's refined oil needs are supplied by South Africa, except for a small supply to the western part of the country by Namibia.

Extend network

Botswana more than doubled its electrification rate between 2006 and 2008, pushing it from 22% to 50%; a remarkable achievement. According to the National Development Plan (NDP), the target is to reach 80% national power access and 60% rural access by 2016. Between 2004 and 2007, rural access to electricity also doubled, to 44%; which is a major improvement even though still falling short of national targets.

Capacity concerns

Because of inadequate supply and load shedding in the Southern Africa region, neighbouring countries have significantly reduced their power sale commitments for the 2008-2012 period and imports are expected to be totally discontinued by 2013. As a result, load shedding has been occurring in Botswana since 2008. In the absence of sizeable new domestic generation capacity to substitute for rapidly declining imports, Botswana Power Corporation (BPC) will be unable to meet the bulk of domestic electricity demand as of 2013.

Botswana’s energy demand was about 3660 GWh in 2008 (peak load of 500MW), which is projected to grow at about 6% per annum reaching 5300 GWh by 2017 (peak load of 850MW) and 6890 GWh by 2026 (peak load of 1130MW). However, the deepening energy crisis across the Southern Africa sub-region is a major impediment to Botswana’s economic growth plans, posing a threat to stability and requiring a major concerted effort at the national and regional levels to address the energy challenge.

Renewable energy

Solar energy
Average solar radiation is excellent at  6.1 KWh/m2 per day. 

A number of photovoltaic pilot projects have been started in Botswana since 1990. The first was the Manyana PV project which started in 1992. The Japanese International Cooperation Agency (JICA) PV solar pilot project is the most recent in Botswana, launching in 2003 at Kudumatse, Motlhabaneng, and Lorolwana villages. The primary objective of all these projects was to access the viability and sustainability of solar technology as an alternative energy source, especially for rural based communities. Depending on the findings, such projects were also intended to be replicated in other parts of the country. Despite substantial efforts by the government of Botswana and donor agencies, the use of PV solar systems for power generation in Botswana, particularly within isolated communities, remains low.

Wind energy
The use of wind energy in Botswana is limited to water pumps due to low average wind speeds.
 

Energy efficiency

Energy efficiency efforts started in 2000, especially in the building sector. As a result, energy efficiency building guidelines have been developed and an energy chapter was incorporated in the national building code.

Potential was recognized in the following technologies: compact fluorescent lighting, passive solar design and energy management systems.

Industry

• Energy auditing of industries, particularly in hotels, mining, manufacturing and agriculture.

Utilities

• Consideration of Demand-Side Management (DSM) measures to reduce generation network pressure.

Transport

• Opportunities for energy auditing in the sector, through sufficient capacity-building and the establishment of efficiency benchmarks.

Residential

• EE strategy development in the building sector, with technical and financial support from DANIDA.
• Energy-efficient cooking device distribution to rural communities.
• “EE and Energy Conservation in the building sector” (2005-2008) and “EE Building Design Guidelines” (2007) development.
• Training professionals in EE and inclusion in University curricula.

Public

• Awareness-raising campaigns.
• DSM measures in government institutions.

Ownership

Electricity market
Most electric power is generated thermally in installations run by the Botswana Power Corporation (BPC), a public enterprise established in 1970.
 

Competition

Government owned monopoly with vertical integration.

Most of the electricity is supplied by Botswana Power Corporation, especially in urban areas. In the remainder of the country diesel generators are estimated to supply over 20 MW of energy to villages, rural schools, hospitals, police stations and prisons. In addition, the BPC controls the network of transmission and distribution lines to transport electricity from the power station, or point of import to eventual consumers.

In 2007, the government amended the energy supply act to facilitate the participation of independent power producers (IPPs) in the electricity sector.

Energy framework

• Vision 2016

The National Development Plan 10 (2009-2016) underscores the need to achieve national “energy security” in light of the region-wide power deficit. In addition, “self-reliance” is one of the four National Principles outlined in Vision 2016, the country’s development roadmap [4]. Vision 2016  aims at 100% electrification to support the broader development goals of access to education, health and employment opportunities for the rural and the disadvantaged population. Capital investment is seen as the bedrock for achieving this vision. Thus, Botswana Power Corporation (BPC) in 2007 and 2008 invested 343.4 million pula ($45.4 million USD) and 17.3 million pula ($2.2 million USD) respectively in electricity infrastructure.

A privatization program has been put in place with the creation of Government’s Public Enterprises Evaluation and Privatization Agency (PEEPA) although no plan currently exists for privatization of the electricity industry.

The National Energy Policy in 1996, which was revised and updated in 2004, is one of the main policy documents. The Botswana Energy Master Plan (1996, reviewed 2003) is another important policy and planning document.

National programs are in place to facilitate the sustainability of the energy sector including the Rural Electrification Program (REP) and the Rural Collective Scheme (RCS). The government policy aims to electrify 14 villages per annum,  with 101 villages having been electrified to date.

Energy Efficiency activities have been initiated at government level since 2000.  Energy conservation activity began through the Work Improvement Team in the Energy Affairs Division.

An ongoing project, funded by DANIDA, deals with the improvement of energy efficiency in the building sector, establishing norms for energy efficient building design. An energy audit program has been launched for the industrial sector.

Loan programs run by the Rural Industries Innovation Centre (RIIC) allow rural households to purchase PV lighting systems. The program is currently under revision.
 

Energy debates

In 2011, it was announced that Botswana will introduce renewable energy feed-in tariffs for electricity generation in 2012.  Under the scheme renewable energy suppliers will be paid for generating electricity for the country's national grid.   Independent power projects in the programme will range from tiny schemes to 5MW. All projects above this will be implemented through power purchase agreements with the state-owned Botswana Power Corporation. Renewable energy is expected to be generated from biogas and biodiesel. Companies from Mauritius, China and neighbouring South Africa have shown interest in clinching the power deals.

Energy studies

Work Improvement Team in the Energy Affairs Division.

The Renewable Energy Information Network – Botswana (REIBO) http://www.info.bw/~reinbo

The Botswana Technology Centre
http://www.botec.bw [Accessed 11th April 2012]
 

Role of government

The Ministry of Minerals, Energy and Water Resources (MMEWR), through the Energy Affairs Division (EAD) is responsible for formulation, direction and coordination of the national energy policy.

The Botswana Power Corporation (BPC), a parastatal under MMEWR, is responsible for electricity generation and supply.

The following ministries, parastatals and non-governmental organisations (NGOs) share energy portfolio responsibilities with MMEWR:

• The Ministry of Environment, Wildlife and Tourism is responsible for forestry and environmental conservation. Excessive harvesting of fuel-wood and high greenhouse gas emissions are some of its main concerns.
• The Department of Forestry and Rangeland Resources and the Department of Environmental Affairs. The Forestry Association of Botswana (FAB) engages in long-term research on fuel-wood, productivity of natural woodlands and in the promotion and implementation of fuel-wood programmes.
• The Ministry of Works and Transport is responsible for off-grid power supply and installation. As well as the maintenance of solar energy equipment in government institutions in rural and urban areas through its Department of Electrical and Mechanical Services (DEMS).
   

Government agencies

• Energy Affairs Division

The role of the Energy Affairs Division is to provide policy direction on energy issues for rapid and effective development of the Renewable Energy–Based Rural Electrification Programme, particularly in remote areas.

Energy Efficiency Unit of the Energy Affairs Division; http://www.eecob.com/
 

Energy procedure

Botswana Energy Master Plan (BEMP) which emphasizes rural electrification with solar energy.

• Renewable Energy–Based Rural Electrification Programme

To respond to the lack of electricity in small settlements which are located away from the national electricity grid, the Botswana government, in collaboration with Botswana Power Corporation, has launched the “Renewable Energy–Based Rural Electrification Programme” for Botswana. The programme was officially launched in October 2005. It is aimed at improving people’s livelihoods by easing their access to modern energy services and its affordability. The programme is financed through Global Environmental Funds (GEF). The primary objective is to improve people’s livelihoods by improving the level of access to modern energy services in rural communities. The activities of the project are focused on introducing different PV-based technology packages in 66 selected villages. These include solar home and centralised PV battery charging systems, or PV mini-grid systems which can also be hybridised with wind generators. Despite the financial support through GEF, the take-off for the programme is still considered relatively low, and concern has been expressed that the donor may pull out.

The rural electrification plan is being addressed by implementing the 100 Villages and the 30 Villages Electrification Projects. The 100 Villages Electrification Project is funded by the Government of Botswana through a loan from Swedish and Norwegian banks amounting to 89 million US Dollars. Hence, between 2004 and 2007, rural access to electricity doubled to 44%, though short of the 60% target under the National Development Plan. 555555555555555555555555

Overview data for Botswana