Image: Jadon Kelly, Unsplash
Norwegian sustainable energy developer Scatec has reached financial close for the second 60 MW solar power plant of the 120 MW Mmadinare solar complex in Botswana.
The estimated total capital expenditure for the 120 MW project is BWP 1.5 billion ($108 million). The solar power plants will be financed with 1 billion BWP of non-recourse project debt and the remainder with equity from Scatec.
Financing for the projects will be provided by the First National Bank of Botswana, through its Rand Merchant Bank division, and by the International Finance Corp. of the World Bank.
The project will be located near Mmadinare, 400 km northeast of the capital Gaborone, and will produce enough power to serve approximately 20,000 households per year.
Scatec owns 100% of the project and will be the designated engineering, procurement and construction company, as well as the asset manager and operations and maintenance service provider. The construction and operation of the power plants will be managed by Scatec’s operations in South Africa.
Scatec signed a binding 25-year power purchase agreement (PPA) for a 60 MW solar PV plant in Botswana’s Mmadinare district in August 2022. In the third quarter of 2023, an expansion of the project by 60 MW was awarded, bringing the total capacity to 120 MW.
“By doubling the total capacity of the solar power plant, we demonstrate the effectiveness of our strategy, our robust business model and our commitment to contributing to the green energy transition in Africa,” said Terje Pilskog, CEO of Scatec.
According to figures from the International Renewable Energy Agency (IRENA), Botswana had only 6 MW of installed solar energy at the end of 2023. In August, state-owned Botswana Power Corp. signed a contract. a power purchase agreement for the development of a 100MW solar power plant in the south of the country.
In September, Scatec revealed it had signed a 25-year PPA for a 1 GW solar and 100 MW/200 MWh battery storage project in Egypt.
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