Strategic planning of coal assets for electricity production: a case of Botswana
by Larona Sethunya Teseletso; Tsuyoshi Adachi
African J. of Economic and Sustainable Development (AJESD), Vol. 8, No. 3, 2021

Abstract: Ensuring affordable and sustainable energy access is core to Botswana's adapted Sustainable Development Goals (SDG 7). Presently, the country has deficient electricity supply whose local demand is expected to increase through to 2030. However, proven domestic coal resources would provide a cheap alternative source to enhance the electricity supply capacity. This study evaluates a potential coal mine, Sese mine, whose objective is to alleviate supply. It is valued using Real Options to determine its underlying project value. The investment model is leveraged from coal to electricity production by comparison of a prospective power plant location to minimise costs from producer to consumer. Scenario cost analysis of transportation systems is achieved to provide value to potential synergy for strategic planning. The findings show that the conveyor system has competitive cost advantage. Our study recognises the need for developing countries to utilise domestic resources to improve energy infrastructure to progress their economies.

Online publication date: Wed, 28-Jul-2021

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the African J. of Economic and Sustainable Development (AJESD):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?


Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com