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Norwegian renewable energy giant Scatec has reached a significant milestone, securing financial closure for the second phase of its ambitious 120 MW Mmadinare solar complex in Botswana. This green light signals the imminent commencement of construction, marking a pivotal moment in the country’s transition to renewable energy.
Originally envisioned as a 60 MW project, the Mmadinare Solar Complex received a significant boost in the third quarter of 2023 with the approval of a 60 MW expansion. This doubling of capacity underscores Scatec’s commitment to Botswana’s energy future and its strategic vision for renewable energy development across the African continent.
“We are thrilled to reach this milestone and commence construction on the second phase of the Mmadinare Solar Complex,” stated Terje Pilskog, CEO of Scatec. “This project exemplifies our dedication to driving the green energy transition in Africa, demonstrating the effectiveness of our robust business model and our ability to deliver impactful renewable energy solutions.”
The project, located near the former mining town of Selebi-Phikwe, will be financed through a combination of debt and equity. A substantial portion of the funding will come from a BWP 1 billion (approximately USD 108 million) non-recourse project debt facility secured from First National Bank in Botswana and the International Finance Corporation (IFC), a member of the World Bank Group. Scatec will provide the remaining equity.
As the sole owner of the project, Scatec will also serve as the engineering, procurement, and construction (EPC) contractor, overseeing every stage of the development. Furthermore, Scatec will assume responsibility for the long-term operation and maintenance of the solar plant, ensuring its continued performance and reliability.
The Mmadinare Solar Complex is poised to make a significant contribution to Botswana’s energy landscape. Upon completion, it is expected to generate clean energy for approximately 20,000 households while preventing the release of an estimated 48,000 tons of carbon dioxide emissions annually.
Recognizing the potential for further collaboration, Scatec is actively exploring opportunities to bring in additional equity partners, allowing for a more diversified ownership structure while potentially reducing Scatec’s long-term economic exposure.
This landmark project solidifies Scatec’s position as a leading player in the burgeoning African renewable energy sector. The Mmadinare Solar Complex serves as a testament to the company’s commitment to sustainable development and its ability to deliver impactful and transformative energy solutions across the continent.
Key Takeaways:
- Project Expansion: The Mmadinare Solar Complex has been expanded to 120 MW, doubling its initial capacity.
- Financial Closure Reached: Scatec has secured BWP 1 billion in project debt financing from First National Bank of Botswana and the IFC.
- Construction Imminent: Construction on the second phase of the project is set to commence immediately.
- Environmental Impact: The project is expected to significantly reduce carbon emissions and provide clean energy to thousands of households.
- Strategic Partnerships: Scatec is exploring opportunities to bring in additional equity partners to further strengthen the project.
This project not only demonstrates the growing importance of renewable energy in Africa but also highlights the crucial role of private sector investment and international cooperation in driving sustainable development.
By: Kelvin Dube
