- responsAbility Investments (“responsAbility”) has provided long-term debt financing to the first grid-connected solar PV projects in Botswana, through one of its climate funds.
- The equity provider is the developer Sturdee Energy (“Sturdee”), an independent power producer focused on Sub-Saharan Africa.
- The projects, Bobonong (3MW) and Shakawe (1MW), have power purchase agreements (PPAs) with the Botswana Power Corporation (BPC), the state-owned utility for 25 years. Read more
- The signing of these PPA’s marks a major milestone in Botswana’s clean energy commitments – targeting the reduction of its carbon emissions and reducing its reliance on fossil fuel generated electricity.
To win the projects, Sturdee took part in a competitive tender for grid-tied solar projects issued by the Botswana Power Corporation (BPC). As part of the tender/award, they have also committed to local content requirements, such as using local labour and services in the project execution and ongoing operations.
The solar assets are being financed on a nonrecourse project finance basis via two special purpose vehicles in Botswana. Both projects are currently under construction and will reach commercial operations before the end of 2022. Sturdee Energy is not only responsible for the development and construction of the two power plants, but also for ongoing operations, as they have significant expertise in all phases of development.
Author: Bryan Groenendaal
