Scatec ASA, a Norwegian company specialising in energy project development, has commissioned the first 60 MW of the Mmadinare solar complex in Botswana. This 120 MW project is the company’s first in the country and marks its entry into the Botswana energy market.
A project structured around a long-term contract
The project is based on a 25-year power purchase agreement with Botswana Power Corporation, the national electricity grid operator. This agreement ensures a stable long-term revenue stream for Scatec, which currently holds full ownership of the project. However, the company plans to bring in additional financial partners to diversify its investment exposure.
Financing and construction
The project’s construction was largely financed through a non-recourse loan structured by several financial institutions, including First National Bank of Botswana and the International Finance Corporation. The total cost of the project is estimated at 1.5 billion Botswana pulas (approximately $108 million). Scatec is also responsible for the construction, operation, and maintenance of the facility.
Completion of the second phase planned for 2026
The second phase of the project, representing the remaining 60 MW, is currently under construction and is expected to begin operations in early 2026. This additional phase will further strengthen solar energy production capacity in Botswana, a rapidly evolving market where renewable energy sources are playing an increasing role in the energy mix.
