Norwegian renewable energy company, Scatec ASA, has reached financial close for the second 60 MW phase of the 120 MW Mmadinare Solar Complex in Botswana.
In a statement issued on Thursday, Scatec’s Chief Executive Officer, Terje Pilskog, expressed optimism about the project’s progress.
The milestone paves the way for construction to commence on the project’s expansion.
“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 and our commitment to the green energy transition in Africa,” he said.
The total investment for the project is estimated at BWP 1.5 billion ($109 million), with the engineering, procurement, and construction (EPC) contract value to Scatec amounting to BWP 1.2 billion.
Financing for the project includes BWP 1 billion in non-recourse project debt secured from the First National Bank of Botswana and the World Bank’s International Finance Corporation (IFC), while the remaining costs will be covered by equity from Scatec.
The Mmadinare Solar Complex is fully owned by Scatec, which also serves as the EPC contractor, asset manager, and operations and maintenance service provider. The solar complex is located near Mmadinare, close to the former mining town of Selebi-Phikwe, approximately 400 kilometers northeast of Botswana’s capital, Gaborone.
Construction of the first 60 MW phase began in 2023, with power to be supplied to Botswana Power Corporation (BPC) under a 25-year power purchase agreement (PPA). Once fully operational, the plant will power around 20,000 households annually while avoiding 48,000 tons of CO2 emissions.
Scatec has also signaled plans to invite equity partners to reduce its long-term economic interest in the project as part of its strategic growth approach.
In September, Scatec announced signing a 25-year PPA for a 1 GW solar array and a 100 MW/200 MWh battery storage project in Egypt.
