(Ecofin Agency) – Botswana has vast potential in terms of solar energy, with more than 3,200 hours of sunshine per year. The country’s Vision 2036 foresees a 50% share of renewable energy in its energy mix by 2036.
Scatec ASA announced this Thursday, December 19 that it had completed financing for a 60 MW extension of the Mmadinare solar complex in Botswana. In August 2022, the Norwegian renewable energy producer signed a contract with the Botswana Power Corporation (BPC) for a 60 MW solar photovoltaic installation in the Mmadinare district, before being awarded during the 3e quarter 2023, the extension authorization bringing the total capacity to 120 MW.
While the financing of the 1era phase has been completed since December 2023 and is currently under construction, the 2e will soon start and considerably strengthen the country’s energy fleet while reducing its greenhouse gas emissions. It should concretely make it possible to power around 20,000 homes per year and avoid the emission of around 48,000 tonnes of CO2.
Total capital expenditure for the entire 120 MW is estimated at USD 108 million by Scatec, provided through borrowings from the First National Bank of Botswana and the International Finance Corporation (IFC), as well as its own funds. “ We mark another milestone in our renewable energy journey in Botswana by commencing construction of the 2e phase of the project. By doubling the capacity of the solar plant, we demonstrate the effectiveness of our strategy, our robust business model and our desire to contribute to the transition to green energy in Africa » said Terje Pilskog, CEO of Scatec.
Although Botswana has significant coal resources, the country aims to transition to renewable energy. It draws inspiration in particular from its South African neighbor, which demonstrates through its programs that the transition can be sustainable and profitable for key sectors including the mining industry, while aligning with global objectives for reducing carbon emissions. carbon.
Abdullah Diop
Business
