Norwegian renewable energy independent power producer, Scatec ASA, has announced the start of commercial operations for the first 60 MW of the 120 MW Mmadinare Solar Cluster in Botswana. The project is the first utility-scale solar project in the Southern African nation.
The solar power plant is located in the Mmadinare District, close to the former mining town of Selebi-Phikwe, 400 kilometres Northeast of capital Gaborone. The solar power facility has a 25-year power purchase agreement (PPA) with Botswana’s national electricity utility, Botswana Power Corporation (BPC).
“We are very proud to achieve COD for the first phase of the solar power plant within budget, reinforcing our commitment to advancing renewable energy in the region,” says Terje Pilskog, CEO Scatec.
“Moving from development to construction and now to commercial operation has been highly rewarding. We are now ramping up construction of the second phase and look forward to its completion in the beginning of next year,“ says Alberto Gambacorta, Scatec’s EVP of Sub-Saharan Africa.
Diversifying the energy mix in Botswana
Scatec revealed that the remaining 60 MW of the project is currently under construction and is expected to be completed in the beginning of 2026. Scatec currently owns 100% of the project, but the Norwegian renewable energy developer says it is aiming to reduce its long-term economic interest by inviting additional equity partners.
The Mmadinare Solar Cluster is expected to be completed for an estimated investment of BWP1.4 billion (USD 104 million), BWP 936 million (USD 68 million) of which will be non-recourse project debt and equity from Scatec. Financing for the first 60 MW was provided by the Rand Merchant Bank in Botswana and the World Bank’s International Finance Corporation (IFC).
The solar power plant will supply electricity to approximately 20,000 households annually, and will also diversify the country’s fossil-fuel-dominated electricity generation mix. As of October 2022, Botswana’s total installed power generation capacity was approximately 894 megawatts (MW). However, the available operating capacity was around 630 MW, with a peak demand of 605 MW.
The solar will also help Botswana meeting its decarbonisation targets by avoiding approximately 48,000 tons of CO2 emissions annually.
