In Short : The World Bank has approved a $122 million loan to support Botswana’s efforts to increase access to renewable energy and reduce dependence on fossil fuels. The funding will be used to finance the construction of a 100-megawatt solar power plant in the country, as well as the implementation of a renewable energy program that aims to bring electricity to rural and off-grid areas.
In Detail : Botswana possesses vast untapped resources for renewable energy and has set ambitious targets to increase renewable energy to 30% of its energy mix by 2030 and 50% by 2036.
The World Bank’s Board of Directors has approved its first lending operation supporting renewable energy development in Botswana. The Botswana Renewable Energy Support and Access Accelerator (RESA) Project, approved on July 11, 2024, aims to transform the country’s energy landscape by enabling renewable solutions and improving electricity access.
Botswana possesses vast untapped resources for renewable energy and has set ambitious targets to increase renewable energy to 30% of its energy mix by 2030 and 50% by 2036. Currently, the first wave of 335MW renewable energy projects is at various development stages by private sector power producers. This new World Bank project will finance necessary grid investments and Botswana’s first 50MW utility-scale battery energy storage system, ensuring the smooth integration and management of the new renewable energy generation into the grid. Additionally, the project will support the Government of Botswana’s ongoing efforts to enhance energy access by financing grid expansion to rural villages and improving electricity services in the Southern districts.
“With financing support and technical assistance from the World Bank, this investment will enable us to harness our rich renewable energy resources for a reliable, affordable, and sustainable energy future. This is critical for our energy security and serves as a significant driver of economic growth,” stated Honorable Minister of Minerals and Energy of Botswana, Lefoko Moagi.
The project is financed through an $88 million loan from the World Bank, a $30 million loan, and a $4 million grant from the Green Climate Fund’s Sustainable Renewables Risk Mitigation Initiative Facility. Additionally, it will benefit from a $3.5 million grant from the Energy Sector Management Assistance Program for technical assistance on solar, wind, and storage project development. By combining technical assistance and public investments, the project aims to mitigate risks in renewable energy investments.
“The World Bank is pleased to support Botswana’s commitment to expanding domestic energy generation with renewable solutions. Alongside financing, the World Bank will provide technical assistance to facilitate further renewable energy projects. This is a vital part of our commitment to fostering more sustainable and inclusive growth in Botswana,” said Satu Kahkonen, World Bank Country Director for Botswana.
