18 July 2024
A consortium led by Botala Energy Ltd (ASX:BTE) has been awarded a tender by the Botswana Power Corporation (BPC) for a 4MW solar power plant in Serowe, Botswana.
This project, part of Botala’s Serowe Energy Hub, is expected to spearhead the gas explorer’s expansion into renewable energy.
The Serowe Solar Consortium, led by Botala with a 49% ownership stake, will construct and operate the facility.
Other consortium members include the Ngwato Development Trust, Base Agencies and OCEF Engineering Botswana.
Boost to ESG cred
In an added boost to the project’s environmental, social and governance (ESG) credentials, Botala has pledged to allocate 1% of the project’s revenue to social and community programmes in Serowe.
The 4MW project, named Project Phuthi, includes a binding Power Purchase Agreement (PPA) with BPC, ensuring strong project economics through a 25-year term linked to the Consumer Price Index (CPI).
The solar power plant will be 4.2 kilometres from BPC’s 66/11kV substation and will be connected to the national power grid, facilitating access to the Southern African Power Pool.
Construction is expected to begin in November 2024, with commissioning slated for mid-2025.
This initiative dovetails with Botala’s strategy of establishing a local commercial footprint in both gas projects and the renewables space. The Serowe Energy Hub, alongside other projects in development, will consolidate Botala’s commitment to advancing renewable energy solutions in Botswana. The 4MW solar plant will complement a proposed 20MW gas/solar hybrid in the same hub, highlighting the company’s integrated approach to sustainable energy.
“An important step”
Botala CEO Kris Martinick said:
“Award of the 4MW solar project marks an important step in Botala becoming a diversified energy company.
“Anchored on our substantial gas resource, we see this solar project as the first commercial pilot to develop capacity to implement our 24MW gas/solar hybrid in Serowe and our 700MW hybrid near Palapye.
“We look forward to working with our partners in finalising this important project.”
About Botala Energy
Botala Energy Ltd (ASX:BTE) is focused on the exploration and development of coal bed methane (CBM) and renewable energy projects in Botswana.
The company is committed to developing a sustainable and diversified energy portfolio, which includes its flagship Serowe CBM Project.
