- The World Bank’s Board of Directors has approved its first lending operation supporting renewable energy development in Botswana.
- The World Bank project will support the Government of Botswana’s continued effort to enhance energy access by financing the grid expansion to rural villages.
The World Bank’s Board of Directors approved its first lending operation supporting the Botswana Renewable Energy Support and Access Accelerator (RESA) Project on July 11, 2024. Botswana aims to transform the country’s energy landscape by enabling renewable solutions and improved electricity access.
Botswana has vast, untapped renewable energy resources. It has set an admirable target of increasing renewable energy to 30 per cent of its energy mix by 2030 and 50 per cent by 2036.
Also, the first wave of 335MW renewable energy projects is already at different stages of development by private sector power producers. This new World Bank project will finance the necessary grid investment and Botswana’s first 50MW utility-scale battery energy storage system to enable the first wave of renewable energy generation to be smoothly integrated and managed in the grid.
In addition, the World Bank project will support the Government of Botswana’s continued effort to enhance energy access by financing the grid expansion to rural villages and improving electricity services in the Southern districts.
“With the financing support and technical assistance from the World Bank, this investment will help us harness our rich renewable energy resources for a reliable, affordable, and sustainable future. This is critical for our energy security and an important driver of economic growth,” says Honorable Minister of Minerals and Energy of Botswana, Lefoko Moagi.
The project’s financing comes from a $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. An additional $3.5 million grant from the Energy Sector Management Assistance Program will provide technical assistance on solar, wind, and storage project development. By combining technical assistance and public investments, the project will help mitigate the risks in renewable energy investments.
Satu Kahkonen, World Bank Country Director for Botswana, says, “The World Bank supports Botswana’s commitment to expand domestic energy generation with renewable solutions. In addition to financing, the World Bank will provide technical assistance to facilitate further renewable energy projects. This is an important part of our commitment to support more sustainable and inclusive growth in Botswana.”