Tlou Energy (LON: TLOU) shares have surged after it said it is expected to sign the 10MW Power Purchase Agreement (PPA) with Botswana Power Corporation (BPC) today.
Under the terms of the deal, which has an initial five-year term, BPC will purchase up to 10MW of power generated at Tlou’s Lesedi power project.
The 10MW project is the first phase of Tlou’s planned power project expansion.
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Lesedi is the company’s most advanced project and is located in Botswana’s Central District. Once in full production, Tlou believes 10MW of generation could provide annual revenue of approximately $10m.
Tony Gilby, Tlou’s Managing Director, said: “Signing of the 10MW PPA is a major step forward for Tlou and builds on the excellent progress made to date. It has taken some time and considerable effort to get to this point as all of those involved would appreciate. This achievement puts the company on a firm path towards development of the Lesedi power project and considerable growth potential.
“With strong demand for reliable and cleaner power in the region, this 10MW project is expected to be the start of much larger developments by the company.”
Tlou shares have surged Monday morning, currently priced at 3.16p, up 23.92%, falling from a high of 3.5p earlier in the session.
Should you invest in Tlou Energy shares?
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