Scatec ASA has reached financial close for the second phase of the Mmadinare Solar Complex in Botswana, thus doubling its capacity to 120 MW and sets the stage for construction. The project — with a total investment of 1.5 billion pula — is financed through non-recourse debt and equity contributions.
A Major Investment in Botswana’s Energy Future
Scatec ASA has reached a financial milestone for the second phase of the Mmadinare Solar Complex in Botswana. This development doubles the project’s capacity to 120 megawatts (MW), thus paving the way for construction. The renewable energy provider first signed a 25-year power purchase agreement (PPA) with Botswana Power Corporation (BPC) in August 2022 for the initial 60 MW. By the third quarter of 2023, Scatec secured the additional 60 MW, which ensured the project’s full potential.
The Mmadinare Solar Complex represents a significant investment in Botswana's renewable energy sector. The total capital expenditure for the 120 MW facility is estimated at 1.5 billion pula (USD 108 million). The engineering, procurement, and construction (EPC) contract is valued at 1.2 billion pula (USD 88 million).
Financing is structured with 1 billion pula (USD 73 million) in non-recourse project debt. This debt is sourced from the First National Bank of Botswana and the World Bank’s International Finance Corporation (IFC), while Scatec will contribute the remaining equity.
Scatec owns the project outright and will serve as the EPC contractor. The company will also act as an asset manager and operations and maintenance (O&M) service provider. Scatec’s South African team will oversee construction and operation.
Mmadinare Solar Complex: Expanding Solar Capacity in Botswana
The Mmadinare Solar Complex is strategically located near Mmadinare, close to the former mining town of Selebi-Phikwe. This location provides ample solar resources, which ensures the plant’s efficiency. The facility will significantly boost Botswana’s renewable energy capacity.
Once operational, the solar plant will prevent approximately 48,000 tons of carbon dioxide emissions each year. It will also generate enough electricity to power about 20,000 households annually. This will improve energy reliability and contribute to Botswana’s sustainability goals.
Scatec CEO, Terje Pilskog, highlighted the significance of the project. “We mark another achievement in our renewable energy journey in Botswana. By doubling the capacity, we demonstrate the effectiveness of our strategy and our commitment to Africa’s green energy transition.”
The project aligns with Botswana’s long-term energy diversification goals. It also reflects Scatec’s mission to lead in renewable energy development across the region.
Financing and Strategic Partnerships
The financial close of the second phase underscores Scatec’s strong business model. The company is also exploring opportunities to bring in additional equity partners. This approach will reduce Scatec’s long-term economic interest in the project. By securing non-recourse project debt from respected institutions, Scatec has minimized financial risk. This ensures the project’s sustainability while fostering investor confidence.
The Mmadinare Solar Complex will play a crucial role in Botswana’s energy transition. By harnessing solar power, the project will reduce reliance on fossil fuels. The avoided emissions will contribute to global climate goals while improving local air quality. The project will also create jobs during construction and operation. This will boost economic activity in the Mmadinare region and support local communities.
Botswana has made renewable energy a priority in its national energy strategy. The Mmadinare Solar Complex is a cornerstone of this effort. By partnering with Scatec, the country is taking a bold step toward a sustainable energy future. Scatec’s involvement ensures the project is backed by global expertise and cutting-edge technology. The company’s experience in renewable energy development makes it a trusted partner for large-scale projects.
The Mmadinare Solar Complex is a game-changer for Botswana. It showcases the potential of renewable energy in addressing climate change and energy needs. As the project moves forward, it sets an example for other nations in Africa and beyond. By doubling its capacity, the Mmadinare Solar Complex will transform Botswana’s energy landscape. Scatec’s leadership in the project highlights its commitment to innovation and sustainability. This milestone reinforces the importance of renewable energy in building a greener future.