Scatec prepares for Botswana solar plant construction after reaching financial close
December 15 2023 - 2:11PM
Scatec prepares for Botswana solar plant construction after
reaching financial close
15 December 2023, Oslo: Scatec ASA, a leading
renewable energy provider, 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.
“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,” says Scatec CEO Terje
Pilskog.
“Solar is one of the world’s fastest growing and most cost
competitive clean energy sources. Scatec’s pioneering role and
solid track record in solar stand testimony to our commitment to
value creation; including the positive impact we make and the
communities we enhance,” Pilskog adds.
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.
For further information, please contact: For
analysts and investors: Andreas Austrell, VP Investor Relations,
tel: +47 974 38 686, andreas.austrell@scatec.com For media:
Meera Bhatia, SVP Communications & Government Affairs, tel: +47
468 449 59, meera.bhatia@scatec.com
Notes to editors: Botswana is rich in natural
resources and has vast solar energy potential, receiving over 3,200
hours of sunshine per year. Even though Botswana possesses vast
coal resources, the nation’s ambitions to drive a renewable energy
transformation is clear to see. The country’s Vision 2036 calls for
50% renewable energy allocation by 2036.
About Scatec Scatec is a leading
renewable energy solutions provider, accelerating access to
reliable and affordable clean energy emerging markets. As a
long-term player, we develop, build, own, and operate renewable
energy plants, with 4.3 GW in operation and under construction
across four continents today. We are committed to grow our
renewable energy capacity, delivered by our passionate employees
and partners who are driven by a common vision of ‘Improving our
Future’. Scatec is headquartered in Oslo, Norway and listed on the
Oslo Stock Exchange under the ticker symbol ‘SCATC’. To learn more,
visit www.scatec.com or connect with us on LinkedIn.
This information is considered to be inside information pursuant
to the EU Market Abuse Regulation and is subject to the disclosure
requirements pursuant to Section 5-12 the Norwegian Securities
Trading Act.
This stock exchange announcement was published by Kine Aaltvedt,
IR Analyst at Scatec ASA, on 15 December 2023 at 21:10 CET
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