- Tati Solar Project progresses towards financial closure.
- Shumba secures SAPP conditional membership for project.
- Southern Africa sees renewable energy capacity growth.
Sandton - Shumba Energy Ltd, a Botswana-based energy development company listed on the Botswana Stock Exchange, recently announced steady progress towards financial closure for its flagship Tati Solar PV Project. The project, with an ownership stake of 80% by Shumba, is expected to have a capacity of 100 MW upon completion.
Despite the complexities involved, the company maintains a cautiously optimistic outlook on achieving this critical milestone by the end of Q4 FY2024. A significant step forward has been the selection of a Tier 1 Contractor as the preferred partner for the project. The current projections indicate that project completion is expected in Q4 FY2025, which would result in substantial value for the company.
Furthermore, the project has been granted conditional membership by the Southern African Power Pool (SAPP) during the current quarter. This membership category is designed to support generators by confirming their participation in SAPP power markets once the projects become commercially operational. This development underscores the potential of the Tati Solar Project and its future role in the regional power market.
The project development expenditures for the quarter were $128,663, with site development accounting for the largest share at $62,106. The company continues to limit external project development expenses in favor of utilizing internal resources of its professional experienced employee team.
Source : Shumba Energy
Southern Africa is demonstrating significant strides in building its renewable energy capacity, with numerous projects currently underway and even more planned. Zimbabwe is aggressively pursuing solar and hydro, aiming for 1,100MW of solar by 2025. South Africa is driving solar and wind development, with significant capacity expected within the next three years. Similarly, Zambia focuses on hydro and solar, targeting over 1,000MW in added renewable energy capacity. Botswana, like Shumba Energy, is prioritizing large-scale solar projects to reduce reliance on coal. Namibia is heavily investing in green hydrogen production along with solar and wind. Malawi, as a smaller player, places an emphasis on smaller-scale solar and sustainable biomass projects.
While progress is significant, meeting the ambitious Sustainable Development Goals (SDGs) by 2030 is a challenge. Investments fall short of the scale needed, and infrastructural issues remain. However, a notable trend is the cooperation between Southern African nations. Projects like the Southern African Power Pool (SAPP) showcase the potential of cross-border collaboration to expand renewable energy access and improve grid stability. This, along with increased private sector involvement, could be key to a sustainable energy future for Southern Africa.
Shumba Energy has several other energy assets in the advanced development stage, including the Sechaba Project and the Morupule South Resources Project. The Mabesekwa Export Independent Power Project (MEIPPP) development is still under discussion of terms for acquisition and control by an investor group from India.
Overall, Shumba Energy Ltd continues to strive towards achieving its key development objectives and maintaining a leading position in the advanced energy projects in Botswana. The company is focused on developing a portfolio of projects to service Southern Africa's energy deficit, with an emphasis on state-of-the-art technology deployment and low impact emissions. The progress of the Tati Solar Project is a testament to the company's commitment to renewable energy development and its potential impact on the regional power market.
-Equity Axis News
