Image Image Image Image Image Image Image Image Image Image Image Image

AfricaMoney | October 18, 2017

Scroll to top

Top

No Comments

Mauritius sugar major Médine to supply 10 MW of green energy to CEB over 20 years

Mauritius sugar major Médine to supply 10 MW of green energy to CEB over 20 years

During periods when Médine Ltd would not be able to supply power to the CEB, CEB Chairman Balraj Narroo said that necessary precautions, such as using their own reserve, have been built into the agreement. (Image: CEB)

Giving a big boost to the renewable energy sector in Mauritius, an agreement was signed last Friday between the Central Electricity Board (CEB) and Mauritius sugar major Médine Ltd, whereby the latter will supply 10 MW of green energy to the CEB during harvest season over the next 20 years.

After a negotiation process which lasted 15 months, the agreement between the CEB and Médine Ltd will finally come into effect next year in July.

Regarding the stretched out negotiation process, Daniel Giraud, Chief Executive Officer at Médine Ltd noted that discussions were mainly based on the technical and financial aspects of the agreement, and pricing was an important consideration.

Giraud added that as Médine Ltd uses no coal and depends on its self-generated power to meet its factory needs, it was essential for the company to reach a mutually beneficial agreement with the CEB.

Furthermore, during periods when Médine Ltd would not be able to supply power to the CEB, CEB Chairman Balraj Narroo said that necessary precautions, such as using their own reserve, have been built into the agreement.

Daniel Giraud, for his part, added that during the sugarcane cutting season, sugar factories need greater power inputs and are forced to cut back on the energy supply to the CEB.

To conclude, Shiam Thannoo, General Manager at CEB, noted that any agreement involves a sharing of risks between the CEB and the partner.

As for the price, it reflects the investment, as is the case for any other Integrated Power Producer (IPP), he concluded.

It may be noted that the CEB produces around 40% of the country’s total power requirements, while the remaining 60% is purchased from IPPs. Currently, the CEB is the sole organization responsible for the transmission, distribution and supply of electricity to the population.

Submit a Comment

Directory powered by Business Directory Plugin