GABORONE - The President, Lt Gen. Seretse Khama Ian Khama has said challenges facing the energy sector called for the introduction of new strategies hence efforts to fast track a gas fired power station.

In his State-of-the-Nation address on Friday, President Khama said the project involved the development of an integrated 250 megawatts (MW) Open Cycle Gas Turbine and coal bed methane power plant fed by substations situated at Orapa for 90MW and the Mmashoro area for 160MW.

He explained that the manufacturing of two 45MW turbines was already in progress and it was hoped that the plant will begin to make a contribution by August 2010 using liquid fuels.

Gen. Khama said there were other long term measures to exploit Botswanas abundant coal resources including the planned construction of a 1 200MW power station at Mmabula.

He said progress at this project has been modest due to protracted negotiations with off takers.

President Khama said due to the growth in fuel consumption, the strategic stock level had been reduced to 23 days, leaving the country vulnerable.

Government maintains an oil storage development programme to ensure availability of fuel supplies for essential services in case of supply disruptions. We will therefore develop a new storage depot at Tshele, infrastructure at Palapye and expand the Francistown storage depot in order to increase capacity to enable maintenance of a 60 days strategic stock level, added Khama.

Gen. Khama said to improve access to electricity, the government was in the process of electrifying additional 130 villages by September 2010, when we will have achieved our mid term goal of ensuring that 70 per cent of all villages in Botswana are electrified. At a total cost of P665 million this is an expensive undertaking. Currently some 54 per cent of households are connected to the national electricity grid.

President Khama said to further improve access to electricity, Government will put in place a national electricity connection standards cost of P5 000 for new household connections. A national electrification fund is being established to effectively implement the initiative and the implementation is expected in the first quarter of 2010.

On the issue of energy supply, Gen. Khama said the provision of electricity will remain under stress until the ongoing Phase 1 expansion of Morupule Power Station is completed in 2012, which will add 600MW of power with another 600MW to be added with Phase 2 of the project.

He explained that Morupule Power Station presently contributes only 120 MW of the 500MW of the electricity this country consumes while the balance is being imported from South Africa and Mozambique.

Presently Botswana receives 350MW from South Africa, which will be reduced to 250MW in December, added Gen Khama. BOPA