17 December 2023
Scatec ASA, a prominent Norwegian provider of renewable energy, has achieved financial closure for the initial 60 megawatts (MW) of the Mmadinare Solar Complex in Botswana, marking the commencement of preparations for the first large-scale solar venture in the country.
In August 2022, Scatec and the Botswana Power Corporation (BPC) inked a binding 25-year power purchase agreement (PPA) for a 60 MW solar PV facility in the Mmadinare District. Subsequently, in the third quarter of 2023, Scatec secured an additional 60 MW expansion, elevating the total capacity to 120 MW.
The projected total capital outlay for the 120 MW project stands at BWP 1.4 billion (USD 104 million), with an estimated EPC contract value of BWP 1.2 billion (USD 90 million) for Scatec. Financing, comprising BWP 936 million (USD 68 million) in non-recourse project debt and Scatec’s equity, will be facilitated by Rand Merchant Bank in Botswana and the International Finance Corporation (IFC) of the World Bank for the initial 60 MW.
Scatec holds full ownership of the project and will act as the designated engineering, procurement, and construction (EPC) entity, along with managing the asset (AM) and providing operations and maintenance (O&M) services. The construction and operation will be overseen by Scatec’s team in South Africa.
Terje Pilskog, CEO of Scatec, expressed excitement about this milestone in Botswana’s renewable energy journey, emphasising their commitment to kickstarting the largest solar project in the country.
Pilskog highlighted their strategy’s effectiveness, robust business model, and dedication to advancing Africa’s green energy transition through doubling the solar power plant’s capacity.
Pilskog also underscored the rapid growth and cost competitiveness of solar as a clean energy source globally. Scatec’s pioneering role and proven track record in solar energy further reinforce their commitment to creating value and fostering positive community impacts.
The solar plant will be situated near Mmadinare, close to the former mining town of Selebi-Phikwe, approximately 400 kilometers northeast of the capital, Gaborone. Its operations are anticipated to prevent around 48,000 tons of CO2 emissions annually, providing power to approximately 20,000 households each year.
