- In August 2022, Scatec and BPC signed a 25-year PPA for a 60 MW solar plant
- In 2023, Scatec awarded another 60 MW, taking the capacity to 120 MW
- The capital expenditure for the 120 MW project is expected to be $104 million
- Rand Merchant Bank in Botswana and IFC will be financing the first 60 MW of the project
Leading renewable energy provider, Scatec ASA, has successfully closed the financing for its 60 MW power project. This is part of the 120 MW Mmadinare Solar Complex project in Botswana, and will also be the 1st utility-scale solar plant in Africa.
It was in August 2022 that Scatec and the Botswana Power Corporation (BPC) signed a 25-year power purchase agreement (PPA) to construct a 60 MW solar PV facility in Mmadinare District. But Scatec was awarded another 60 MW in Q3/2023, taking the total capacity to 120 MW.
Located near the Mmadinare District, the project will be completely owned by Scatec. The company will also handle EPC, and will also be the asset manager and the operations and maintenance service provider. Scatec’s South Africa branch will handle the construction and operations of the power plants.
Coming to the finances, the capital expenditure for the 120 MW project is expected to be $104 million, where the EPC contract value to Scatec will be about $90 million. Rand Merchant Bank in Botswana and the World Bank’s International Finance Corporation (IFC) will be financing the 1st 60 MW.
Speaking on the occasion, Scatec CEO Terje Pilskog said, “As we reach another milestone in our renewable energy journey in Botswana, we are now looking forward to starting construction of the largest solar project in the country. 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.”
This 60 MW solar power plant is expected to reduce 48,000 tons of CO2 emissions and will power approximately 20,000 households every year.
Meanwhile, in another development, Release, an initiative by Scatec, and IFC have signed a $100 million loan agreement. Release operates on a unique leasing model, where it provides flexible short- or long-term contracts for the mining and utilities market in Africa, based on modular, movable and redeployable equipment.
This loan deal is part of a bigger partnership to provide simpler, more affordable, and cleaner power to African utilities so that the costly diesel can be replaced. The deal includes a $65 million guarantee facility that will support the payment obligations of Release’s customers.
