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AFR ready to plug ZESCO power deficit

Focused on the development of multiple integrated power projects in Botswana to meet the increasing demand for power in the southern African region – African Energy Resources (AFR) has set eyes on Zambia.

AFR said the fast growing electricity demand from all sectors; residential commercial and industrial users should prop the company’s efforts to export power to Zambia.

“Copper mining industry still accounts for majority of power usage. FQM alone is the largest user of power in Zambia,” said AFR highlighting Zambia’s potential.

Some of the initiatives being put in place include the draft power sales agreement between Sese JV and FQM’s copper operations in Zambia,

In addition negotiations for a generation and export Licence and power wheeling agreements are in progress – now the only major outstanding permits and agreements

“Continue negotiations with the Botswana Energy Regulatory Authority (BERA) for Generation and Export License – this is the only remaining major license required for the project in Botswana.”

ZESCO is currently unable to meet internal demand without importing power, leading to the power utility company hiking tariff’s to its major customers to USD 9.3c per kWh.

However, FQM has agreed to pay this tariff if ZESCO allows it to import a portion of its power needs, but the commercial details around MW volume and ‘Use of System’ fees have yet to be full y resolved.

AFR also revealed that FQM has requested a 12-24 month extension to the earn-in timeframe for the Sese JV whilst issues are resolved.

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