Mozambique power utility, Electricidade de Mocambique (EDM) is selling 70 megawatts of power to Botswana under a five-month contract running from May to September, an official said on Wednesday.
EDM director of system operations and markets Aderito de Sousa told journalists in Maputo that the power purchase agreement was signed when Botswana’s President Mokgweetsi Masisi visited Mozambique in January this year.
"Botswana’s state-owned power utility, Botswana Power Corporation, will now pay EDM about US$5 million a month for the 70 MW,” de Sousa said.
He revealed that the Botswana power utility also plans to increase its imports to 150 MW for a period of two years starting in 2020 while rehabilitating its own power stations.
“This second contract has not yet been finalised," the official said.
He however allayed fears that the exports to Botswana would affect EDM’s commitments to its Mozambican customers.
Botswana is facing power supply deficit and relies on electricity imports from South Africa and Mozambique, while large businesses have resorted to expensive diesel generators.