Scatec ASA Initiates Exciting Solar Project Expansion in Botswana
In a significant move towards sustainable energy, Scatec ASA has successfully reached financial closure for the second phase of the Mmadinare Solar Complex in Botswana. This expansion will add an additional 60MW to the already-existing facility, culminating in a total capacity of 120MW. The solar initiative is a pivotal step towards bolstering Botswana’s renewable energy goals and enhancing energy security for its citizens.
Originally signed in August 2022, the 25-year power purchase agreement (PPA) with Botswana Power Corporation (BPC) set the stage for this ambitious solar project. Following the recent approval for a 60MW expansion in the third quarter of 2023, Scatec is gearing up for construction, showcasing a robust commitment to renewable energy in the region.
The total estimated expenditure for this ambitious project reaches a substantial BWP 1.5 billion (around USD 108 million). Among this, about BWP 1.2 billion (USD 88 million) has been earmarked for the engineering, procurement, and construction (EPC) activities, which will be managed entirely by Scatec. Financing for the construction will be sourced from a mix of project debt and equity, with significant backing from the First National Bank of Botswana and the International Finance Corporation (IFC), part of the World Bank Group.
Scatec’s strategic approach allows the company to take charge as the EPC, asset manager, and operator for the solar facilities, all while leveraging its experienced workforce in South Africa. The company also signals its intention to diversify its investment by inviting additional equity partners down the line.
Located near Mmadinare, just 400 kilometers northeast of Botswana’s capital, Gaborone, this solar power plant serves as a beacon of hope and transformation for the region, promoting an eco-friendly approach to energy generation. It stands as a testament to Botswana’s commitment to harnessing the sun’s energy, aligning with global sustainability trends.
As countries worldwide seek to transition towards cleaner energy sources, Scatec ASA’s project exemplifies not only a commitment to renewable energy but also introduces job opportunities and technological advancements to the local economy. With this expansion, Botswana can look forward to a greener future, contributing positively to the global energy landscape.
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This project underscores the vitality of renewable energy initiatives and showcases the positive strides being made within Botswana to increase sustainable energy usage. For updates and insights on innovative projects across Africa, stay tuned to Africazine.
Tags: #BusinessNews #RenewableEnergy #Botswana #WorldNews
