World Bank Approves Landmark Renewable Energy Project In Botswana

The World Bank’s Board of Directors has approved its inaugural lending operation to support renewable energy development in Botswana. The Botswana Renewable Energy Support and Access Accelerator (RESA) Project, approved aims to revolutionize the country’s energy landscape by enabling renewable solutions and improving electricity access.

Botswana possesses vast untapped resources for renewable energy and has set ambitious targets to increase its renewable energy mix to 30% by 2030 and 50% by 2036. Currently, the first wave of 335MW renewable energy projects is at various development stages by private sector power producers. The newly approved World Bank project will finance essential grid investments and Botswana’s first 50MW utility-scale battery energy storage system, ensuring seamless integration and management of the new renewable energy generation into the grid. Additionally, the project will support the Government of Botswana’s ongoing efforts to enhance energy access by financing grid expansions to rural villages and improving electricity services in the Southern districts.

“With the financing support and technical assistance from the World Bank, this investment will support us in harnessing our rich renewable energy resources for a reliable, affordable, and sustainable energy future. This is not only critical for our own energy security but also provides an important driver of economic growth,” said Honorable Minister of Minerals and Energy of Botswana, Lefoko Moagi.

The project is financed through an $88 million loan from the World Bank, a $30 million loan, and a $4 million grant from the Green Climate Fund’s Sustainable Renewables Risk Mitigation Initiative Facility. It will also benefit from technical assistance on solar, wind, and storage project development through an additional $3.5 million grant from the Energy Sector Management Assistance Program. By combining technical assistance and public investments, the project aims to mitigate the risks associated with renewable energy investments.

“The World Bank is pleased to support Botswana’s commitment to expanding domestic energy generation with renewable solutions. In addition to financing, the World Bank will provide technical assistance to facilitate further renewable energy projects. This is an important part of our commitment to support more sustainable and inclusive growth in Botswana,” said Satu Kahkonen, World Bank Country Director for Botswana.

This landmark project underscores the World Bank’s commitment to supporting Botswana’s transition to a more sustainable and inclusive energy future, setting a precedent for future renewable energy initiatives in the region.