Botswana targets 8,000 MW of renewables in four years

From the newsletter

The Botswana government and the state-owned Botswana Power Corporation (BPC) have announced a strategic initiative to reach 8,000 MW of energy production by 2028. A 1,500 MW solar plant is already in development, alongside a 50 MW solar PV plant in Mmadinare, which marks the first phase of a larger 100 MW project.

• Botswana wants to rise from sixth to second place in Africa’s energy rankings by 2026. It also wants to become a regional energy powerhouse in the Southern African Development Community (SADC) and export electricity to South Africa by 2027/2028.

• The country's total renewables capacity as of 2021 was 6 MW (all solar), a figure that has stagnated for the past few years but it's currently targeting to increase its renewable energy share to 30% by 2030 and 50% by 2036, with solar energy playing a pivotal role.

More details

• Botswana is embarking on a significant shift towards renewable energy, driven by ambitious targets and strategic initiatives. BPC is leading this transformation, aiming to achieve 8,000 MW of renewable energy production by 2028, a substantial increase beyond the 1,090 MW target outlined in the Integrated Resource Plan (IRP) for 2030. According to BPC Transformation and Strategy Manager, Letshego Moeng, (pictured above), solar power will be the primary source for these projects.

• This ambitious plan includes several key projects. By 2026, 100 MW solar projects are slated for completion in Jwaneng and Letlhakane, followed by a 100 MW wind energy project by 2027. Furthermore, the North West Transmission Grid, connecting Botswana with Zambia, Zimbabwe, and Namibia, is also scheduled for completion by 2027. This crucial infrastructure development will alleviate bottlenecks in the ageing transmission network, which currently lacks the capacity for increased energy production.

• Historically, Botswana's energy sector has relied heavily on its vast coal reserves, totalling 200 billion tonnes, resulting in a limited renewable energy footprint. However, the environmental challenges associated with coal have prompted a strategic shift towards diversification. The country's policies and incentives are positioning it as a renewable energy hotspot, with initiatives like the National Energy Policy (NEP) and the Renewables Readiness Assessment (RRA) designed to enhance energy security and reduce reliance on fossil fuels.

• This shift has attracted significant interest and investment. The World Bank, through the Botswana Renewable Energy Support and Access Accelerator (RESA) Project, is providing an $88 million loan to bolster grid infrastructure and implement a 50 MW utility-scale battery energy storage system. The World Bank project also supports grid expansion to rural villages and improved electricity services in the Southern districts. Other investments include Scatec Solar ASA's Mmadinare 100 MW Solar Cluster, the Solarcentury Africa and Energy and National Resource Corporation’s 100 MW solar project near Palapye.

• Despite these advancements, challenges remain. The existing grid infrastructure, designed for coal-fired power plants, presents technical and financial hurdles to the transition. While Botswana's policies are encouraging, the country still needs to develop robust and supportive legal frameworks to further stimulate renewable energy investment and widespread adoption.

Our take

• For a project this big, engaging the private sector is the better strategy. Government projects often face delays, and Botswana's 2030 and 2036 goals are too close for comfort. Private investments are needed for rapid renewable energy deployment.

• 8,000 MW will shatter the current grid. One new transmission line is a drop in the ocean. Botswana needs a complete grid overhaul, multiple lines, and major upgrades to accommodate additional capacity.

• On exporting power, Botswana is on the right path. However, this is still contingent on addressing grid stability and getting energy policies right. If Botswana does this and it is very able, it will join renewable energy hubs like Morocco and neighbouring South Africa as a leader in sustainability.