Restructuring of the Electricity Supply Market, as a Basic Vector of Electricity Sector Reform in Developing Countries: Botswana Case Study

Lesego Molapisi

doi:10.17835/2078-5429.2018.9.4.072-081

Abstract

Restructuring of the Electricity Supply Market, as a Basic Vector of Electricity Sector Reform in Developing Countries: Botswana Case Study

Highlights

Introduction of Independent PowerProducers and signing of Power Purchase AgreementsSale of Morupule A and B power stations
As proven by the values of the listed key indicators and the recurring financial loss made by the national power utility, the performance of the energy sector in Botswana is considerably low (Botswana Power Corporation, 2016)
Government should retain a policy role and the Ministry of Green Technology and Energy Security should collaborate with the regulator to produce an Integrated Resource Plan that will guide the overall long- term strategies in the power sector

Summary

Energy Access

As proven by the values of the listed key indicators and the recurring financial loss made by the national power utility, the performance of the energy sector in Botswana is considerably low (Botswana Power Corporation, 2016). The burden of the 600 MW Morupule B power station technical challenges will continue to be an expensive liability for the government with its unreliability and high maintenance costs Proven by this recurring high expense of maintenance, the cost of operating the power plant is most likely to exceed the capital loan principal of US $1.7 billion (Botswana Power Corporation, 2010), and recovery is far from being reached without considerable government bail. It would be recommendable that the state completely privatized the generation component of power supply and invite the private sector to participate and lead in power generation in order to mitigate the current challenges in shortage of power supply and operational inefficiency, as well as to minimize future market risks. Absolute ommercialization of BPC and its restriction on transmission and distribution

Autonomous and transparent regulation

Findings

Regulatory and structural reforms