Mmadinare solar park project in Botswana set for first phase

Scatec, a Norwegian IPP, has closed financing that paves way for the development of for the first phase of the Mmadinare solar photovoltaic power plant in Botswana.

The energy project involves the construction of a 120 MWp solar photovoltaic plant at Mmadinare, near the former mining town of Selebi-Phikwe, 400 kilometers northeast of the capital Gaborone.

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EPC contract

The project will be implemented in two phases and the financing for the first phase involves a loan of at least US $68M. The total investment for both phases is estimated to be around US $104M. The financing for the project is secured through a contract with Rand Merchant Bank and the International Finance Corporation (IFC), the private sector financing arm of the World Bank Group.

Scatec has signed an engineering, procurement, and construction (EPC) contract for the project. Scatec’s South African division will provide operation and maintenance (O&M) services for the Mmadinare solar PV plant for 25 years under a power purchase agreement (PPA) with the state-owned Botswana Power Corporation (BPC).

The solar power plant is expected to prevent the emission of around 48,000 tonnes of CO2. It is projected to power approximately 20,000 homes annually. Botswana currently generates 80% of its electricity (993 MW) from coal.

The country has opened up its electricity sector to public-private partnerships (PPPs), facilitating large-scale solar power production. The first two solar power plants (4 MWp) connected to the national grid were commissioned in October 2023 in Bobonong and Shakawe.