Poster (EARTH)

[PE1-062] INVESTMENT OF LONG-TERM SUPPLY OF ELECTRICITY THROUGH COAL PRODUCTION IN BOTSWANA

○LARONA SETHUNYA TESELETSO¹, TSUYOSHI ADACHI¹ (1. AKITA UNIVERSITY)

Keywords:Botswana, Real Options, Coal, Electricity

The Southern African region is facing an escalating power supply deficit amid a diminished power surplus and generation capacity together with an increased energy demand in the country. This study tackles Botswana whose related issues are compounded by the underperformance of Morupule B power station. The current installed base generation capacity, operating capacity and peak demand are 892 MW, 410MW and 610MW respectively (SADC, 2016). The extra supply gap achieved through South Africa and Mozambique imports. Future electricity demand forecast reflects 600MW deficit by the year 2025. As part of a comprehensive electricity development strategy, the government aims to develop coal resources to meet future power demands through investment appraisal. The optimization investment of coal resources in the country through the real options model will be conducted on near- and existing- coal mine development projects. Geological and economic uncertainties of coal resource are reviewed to investigate the interaction linkages of coal extraction and electricity generation in the country until 2030. The optimization criteria of the resource will develop a framework that achieves electricity security in the country and other coal-related exports within the region notwithstanding the possibility of ameliorating Botswana economy.