Recently, SCATEC ASA successfully completed the financing closure of a 60MW PV project in Botswana, marking the project has entered a substantial preparatory phase for the start of construction. The total investment of the project is expected to be 1US$0.4 billion, of which the EPC contract is approximately US$90 million, which is 100% owned by SCATEC and is responsible for the EPC and operation and maintenance of the power plant.
The project is located in the Mmadinare region of Botswana, close to the former mining town of Selebi-Phikwe, about 400km northeast of the capital Gaborone. The area has abundant solar energy resources, which provides good conditions for the construction of photovoltaic power plants.
In August 2022, SCATEC signed a 25-year PPA with the Botswana Electricity Company (BPC) for the construction of a 60MW PV plant in the Madinare area. In the third quarter of 2023, SCATEC received permission for a further 60MW of expansion of the project, which is expected to reach 120MW of capacity upon completion.
The 120MW PV project is expected to be completed and operational in the next few years, providing Botswana with clean, reliable electricity**. At the same time, the project will also help reduce Botswana's dependence on traditional energy sources, reduce carbon emissions and promote sustainable development.
In terms of financing, the first 60MW of financing will be provided by Botswana's RAND Commercial Bank and the World Bank's International Finance Corporation (IFC). This financing will provide important financial support for the construction of the project and ensure the smooth progress of the project.
Overall, SCATEC ASA successfully completed the financing closure of a 60MW PV project in Botswana, laying a solid foundation for the project's commencement of construction. The project will contribute to the sustainable development of Botswana by providing clean, reliable electricity**. At the same time, the project will also provide important support for SCATEC ASA's business expansion in the African region.