Scatec ASA has reached financial close on the first 60 megawatt (MW) of the 120 MW Mmadinare Solar Complex in Botswana and is preparing for construction start of the first utility-scale solar project in the African nation. In August 2022, Scatec, and the Botswana Power Corporation (BPC) signed a binding 25-year power purchase agreement (PPA) for the construction of a 60 MW solar PV facility in the Mmadinare District. In the third quarter 2023, Scatec was awarded a 60 MW expansion to the project, taking the total capacity to 120 MW.

The estimated total capital expenditure for the 120 MW project is BWP 1.4 billion (USD 104 million) with an estimated EPC contract value to Scatec of BWP 1.2 billion (USD 90 million). The solar power plants are estimated to be financed by BWP 936 million (USD 68 million) of non-recourse project debt and equity from Scatec. Financing for the first 60 MW will be provided by the Rand Merchant Bank in Botswana and the World Bank?s International Finance Corporation (IFC).

Scatec owns 100% of the project and will be the designated engineering, procurement, and construction (EPC) company, as well as asset manager (AM) and operations and maintenance (O&M) service provider. Construction and operation of the power plants will be managed by Scatec?s organisation in South Africa. The plant will be located near Mmadinare, close to the former mining town of Selebi-Phikwe, 400 kilometres Northeast of capital Gaborone.

The solar power plant will ensure that approximately 48,000 tons of CO2 emissions will be avoided and power approximately 20,000 households annually.