The South African power utility Eskom and Botswana Power Corporation (BCP) have signed a 3-year long term power supply agreement.
In the past, Eskom encountered supply difficulties due to its ageing infrastructure and struggled to meet the country's demand. Last year, the company implemented a major power plants maintenance program and could not export any electricity.
This year, the overhaul process is over and new generation units have been brought onstream. Eskom announced it has an excess capacity of 4,000 MW. Since South Africa is not yet entirely electrified, Eskom has to deliver this additional supply abroad.
Thus, the deal with BCP is in line with Eskom's strategy which currently plans to increase its electricity exports towards South Africa's neighbouring countries. The company also signed a 5-year power sale agreement with NamPower (Namibia's power utility) last month.