Scatec’s Solar Plant Near Mmadinare to Power 20,000 Homes and Cut 48,000 Tons of CO2 Annually

Scatec ASA, a global leader in renewable energy, has achieved financial close for the second 60 MW phase of the 120 MW Mmadinare Solar Complex in Botswana, paving the way for construction to commence. This milestone follows the company’s 25-year power purchase agreement (PPA) signed with Botswana Power Corporation (BPC) in August 2022 for the first 60 MW solar PV facility, and a subsequent 60 MW expansion awarded in 2023, doubling the project’s capacity.

The project, with a total estimated capital expenditure of BWP 1.5 billion (USD 108 million), will be financed through a mix of non-recourse project debt of BWP 1.0 billion (USD 73 million) and equity provided by Scatec. Funding is secured from First National Bank of Botswana (via Rand Merchant Bank) and the World Bank’s IFC. Scatec, owning 100% of the project, will oversee engineering, procurement, construction (EPC), asset management (AM), and operations and maintenance (O&M). The South Africa-based Scatec team will manage the project, with plans to invite additional equity partners to reduce the company’s long-term economic stake. The solar power plant will be situated near Mmadinare, close to the former mining town of Selebi-Phikwe, approximately 400 kilometers northeast of Gaborone, the capital of Botswana. Once operational, the facility will provide clean energy capable of powering around 20,000 households annually, while preventing approximately 48,000 tons of CO2 emissions each year.

“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,” said Scatec CEO Terje Pilskog.