Scatec reaches financial close for Botswana solar project, prepares for construction
Renewable energy provider Scatec has reached financial close for the second 60 MW of the 120 MW Mmadinare solar complex in Botswana, setting the stage for construction to begin.
Scatec signed a 25-year power purchase agreement (PPA) with Botswana Power Corporation in August 2022 for the first 60 MW phase. In the third quarter of 2023, the company secured a 60 MW expansion, doubling the project’s capacity to 120 MW.
The total capital expenditure for the 120 MW project is 1.5-billion pula, with an estimated engineering, procurement and construction (EPC) contract value to Scatec of 1.2-billion pula.
Financing will be provided through 1-billion pula in non-recourse project debt, sourced from First National Bank in Botswana and the World Bank’s International Finance Corporation. Scatec will provide the remaining equity.
Scatec owns 100% of the project and will act as the EPC contractor, as well as asset manager and operations and maintenance service provider.
Construction and operation will be managed by Scatec’s South African team.
The company is also exploring opportunities to bring in additional equity partners to reduce its long-term economic interest in the project.
“We mark another achievement for our renewable energy journey in Botswana as we start construction of the second phase of the project. By doubling the total capacity of the solar power plant, we demonstrate the effectiveness of our strategy, robust business model and drive to contribute to the green energy transition in Africa,” says Scatec CEO Terje Pilskog.
The plant will be located near Mmadinare, close to the former mining town of Selebi-Phikwe.
Scatec says the solar power plant will ensure that about 48 000 t of carbon dioxide emissions will be avoided and can power about 20 000 households yearly.
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