Botswana: Scatec invests 96 million EUR in a 120 MW solar complex

Scatec finalizes funding for a 120 MW solar complex in Botswana, reducing 48,000 tons of CO2 and powering 20,000 households.

Partagez:

Norwegian company Scatec has confirmed financial closure for the second phase of the Mmadinare solar complex in eastern Botswana. This project, with a total capacity of 120 megawatts (MW), represents an investment of 96 million euros (BWP 1.5 billion).

The project is structured into two 60 MW phases. The first phase was secured in 2022 through a 25-year power purchase agreement (PPA) signed with Botswana Power Corporation (BPC). The second phase was awarded to Scatec during the third quarter of 2023.

Financing and key stakeholders

The financing is based on a mixed model combining 64 million euros (BWP 1.0 billion) in non-recourse debt provided by First National Bank of Botswana (via Rand Merchant Bank) and the International Finance Corporation (IFC), and 32 million euros (BWP 500 million) in equity. The equity portion is fully covered by Scatec, which owns 100% of the project.

Strategic objectives and economic impact

This project is part of a strategic effort to expand renewable energy production in Africa. By avoiding approximately 48,000 tons of CO2 emissions annually, it contributes to climate and environmental goals while reducing reliance on traditional energy sources.

Located near Mmadinare, about 400 kilometers northeast of Gaborone, the solar plant will supply energy to approximately 20,000 households. The operation and maintenance of the site will be managed by Scatec’s regional teams in South Africa, ensuring local expertise and economic benefits for the region.

Toward diversification of financing

In a context where access to capital remains a challenge for renewable energy projects in Africa, Scatec plans to introduce financial partners to diversify its portfolio. This approach aims to reduce its economic exposure while maintaining its role in managing and operating the project’s energy assets.

The Mmadinare solar complex represents a tangible example of opportunities created through partnerships between international financial institutions, private investors, and energy companies in emerging markets.

The Kuwait Authority for Partnership Projects has launched the tender for the 1.1 GW Al Dibdibah and Al Shagaya Phase III Zone 1 solar project, targeting pre-qualified international companies and consortia.
T1 Energy commits $850 million to build a five-gigawatt photovoltaic facility in Texas, selecting Yates Construction and benefiting from local tax incentives, with 1,800 jobs anticipated by the end of 2026.
The German solar developer has completed the 90-megawatt-peak Postomino photovoltaic park in north-western Poland, integrating it with an existing wind farm’s high-voltage line in a cable-pooling arrangement set to supply electricity to about 32,000 homes.
EDF Renouvelables plans a floating solar plant in Isère by 2027, featuring 70,000 panels integrated with an existing hydroelectric dam, targeting an annual production of 60 GWh.
Scatec ASA finalises financing for its hybrid solar-battery Obelisk project in Egypt, securing $479.1 million from international financial institutions for a planned capacity of 1.1 GW solar and 100 MW storage.
The 800 MW Horizeo photovoltaic project spanning 680 hectares in Gironde awaits governmental authorization linked to France’s Zero Net Artificialization (ZAN) objective to advance permits submitted in early 2024.
Global photovoltaic tracker shipments rose 20% in 2024, driven by India and Saudi Arabia, pushing the United States to a less dominant market position.
Chinese manufacturer Astronergy will supply its ASTRO N8 photovoltaic modules for a solar project developed in Spain by engineering firm GES Siemsa, marking a strategic advance in the European market.
SMEG and the City of Mâcon have started construction of a 6 MWc solar power plant on a former landfill site, with commissioning scheduled for early 2026.
Producer Corsica Sole is inaugurating a 5.4 MWc photovoltaic plant in Cirey-sur-Vezouze on a former industrial site, with 8,700 panels and an estimated annual output of 6.1 GWh.
The Kashgar region has connected over 10 GW of solar projects to the grid, representing more than three-quarters of its total power capacity, initiating the development of a new power system in southern Xinjiang.
U.S.-based Soltage raises $260mn to support the construction of 250 MW in solar and storage projects within a development pipeline exceeding 2 GW.
Origis Energy has closed financing for the Wheatland project in Indiana as part of a $530mn portfolio, in partnership with MUFG and several financial institutions.
Germany’s solar capture price fell to a five-year low in May, driven by rising negative price hours and excess photovoltaic capacity.
Albioma Solaire Guyane has commissioned five photovoltaic plants totalling 1.4 MWc, spread across Mana and Macouria, to strengthen local electricity supply in a region isolated from the national grid.
South African group NOA and Standard Bank have finalised the financing of the 349 MW Khauta South solar site, now the largest developed on a single site in South Africa.
Enfinity Global signed new power purchase agreements for a 420 MW solar portfolio with a US technology company operating in Italy, reinforcing its position in the Italian energy market.
The American solar sector saw strong industrial growth in Q1, but tax and trade uncertainties could hinder its momentum and affect local investments.
Global solar leaders doubled shipments in one year, but combined losses of $4 billion highlight intense margin pressure in the sector.
Growth in the U.S. solar sector is expected to slow by 2030 due to political shifts in Washington directly impacting tax incentives and imposing tariffs on essential materials, creating sectoral uncertainty.