Norwegian green power producer Scatec ASA (OSL:SCATC) has landed a project to build a 50-MW solar farm in Botswana which should reach commercial operation by the end of June 2024.
The contract was awarded by Botswana Power Corporation (BPC) which has signed a power purchase agreement (PPA) with Scatec to off-take the electricity from the park for a period of 25 years.
The project, featuring the country's first large-scale solar farm, will be located in the former mining town of Selibe Phikwe, in the east of Botswana.
Once operational, the solar farm will supply power to about 20,000 households and offset some 48,000 tonnes of carbon dioxide emissions annually.
Scatec will perform the engineering, procurement and construction (EPC) work on the project and will then operate and maintain the power plant.
The deal with the Norwegian company is the sixth solar PPA signed by BPC, the state-owned company said at a ceremony on Wednesday. The company has already awarded five projects for the development of small-scale solar plants across the country with two of them already under construction and the remaining three in the financing stage.
Botswana aims to increase the share of renewables to 15% of its energy mix by 2030 and boost it to 50% by 2036.
For Scatec, the project marks its expansion in Sub-Saharan Africa. Earlier this week, the power producer agreed NOK 1.2 billion (USD 0.120m/EUR 0.120m) in guarantees in support of its project for 540 MW of solar power and 225 MW of battery storage in South Africa.
(NOK 1 = USD 0.100/EUR 0.100)
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