Scatec ASA has reached financial close for the second phase 60 MW of the 120 MW Mmadinare Solar Complex in Botswana, with construction preparations underway.
The move marks the doubling of capacity following the binding 25-year Power Purchase Agreement (PPA) signed in August 2022 with Botswana Power Corporation (BPC) for an initial 60 MW solar PV facility. In Q3 2023, Scatec was awarded the project’s 60 MW expansion.
The estimated total capital expenditure for the development is US $108M with an estimated engineering, procurement, and construction (EPC) contract value to Scatec of US $88M. A $73M non-recourse project debt will be provided by First National Bank of Botswana (Rand Merchant Bank division) and the World Bank’s International Finance Corporation (IFC). Remaining funds to be provided by Scatec.
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Mmadinare Solar Complex
Scatec owns 100% of the project but plans to reduce its long-term economic interest by attracting additional equity partners. The firm will also serve as the Engineering, Procurement, and Construction (EPC) contractor, as well as the Asset Manager (AM) and Operations and Maintenance (O&M) service provider. The company’s South African organization will oversee construction and operation.
The Mmadinare Solar Complex will be situated near Mmadinare, close to Selebi-Phikwe, approximately 400 km northeast of Botswana’s capital, Gaborone. The solar power plant will ensure that approximately 48,000 tons of CO2 emissions will be avoided and can power approximately 20,000 households annually. Upon completion, the project will strengthen Botswana’s renewable energy capacity and also align with Scatec’s strategy to support Africa’s green energy transition.
Scatec CEO Terje Pilskog remarked, “We mark another achievement for our renewable energy journey in Botswana as we start construction of the second phase of the project. By doubling the total capacity of the solar power plant, we demonstrate the effectiveness of our strategy, robust business model, and drive to contribute to the green energy transition in Africa.”
