Botswana: Solar projects receive investment from Swiss investor

Zurich-based responsAbility Investments 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, 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.

The signing of these PPAs 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 BPC. 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 it has significant expertise in all phases of development.

Monya Bassingthwaighte, principal at responsAbility said, “We are excited to support Sturdee and BPC to implement these first-of-their-kind projects in Botswana. We hope this first small step will be demonstrative and help pave the road for future projects of this nature in the country. It has been a pleasure to work with Sturdee’s experienced team and I look forward to supporting them in future transactions across the region.”

Get the most from the Africa Private Equity News app by creating a free membership account. Go to the app home screen, tap the round orange icon in the top-right of your screen and follow the prompts.