Sturdee Energy declared the attainment of a Commercial Operation Date (COD) on October 12, 2023, as mandated in the Power Purchase Agreements (PPAs) with Botswana Power Corporation (BPC) for the Shakawe (1 MW) and Bobonong (3 MW) solar plants in Botswana.
The signing of the PPAs marks a milestone in Botswana’s clean energy commitments, as this is its first solar PPA in the country’s quest to reduce its carbon emissions and reliance on fossil fuel-generated electricity.
As part of the agreement, Sturdee Energy committed to local content requirements, such as using local labour and services in project execution as well as ongoing operations.
Sturdee Energy is not only responsible for the development and construction of the two power plants but also for ongoing operations.
The solar projects were financed on a non-recourse project finance basis via two special-purpose vehicles in Botswana. ResponsAbility Investments provided the long-term debt financing for the project through one of its climate funds.
The International Energy Agency (IEA) said Botswana has recently made good progress with its electrification rates through a large push for mini-grid and off-grid solutions in rural areas.
The IEA points out that coal production is set to increase in Botswana, but exports remain limited and mainly involve trade with neighbouring countries.
In October 2020, the government approved an integrated resource plan (IRP) that provides a roadmap to achieve a reliable, safe, and affordable electricity supply. This includes a target of renewable energy contributing 15% to the energy mix by 2030 from its current negligible contribution.
The country launched a Rooftop Solar (RTS) programme in October 2020 with the assistance of USAID’s Southern African Energy Programme (SAEP).
USAID stated that the five-year project, aimed at enhancing electricity access in Southern Africa, will empower local consumers to install personal solar systems for electricity generation and allow them to sell any surplus electricity back to BPC.
