World Bank Approves €122 Million for Botswana’s Renewable Energy and Electricity Services Enhancement
The World Bank’s Board of Directors has greenlit its inaugural lending operation aimed at bolstering renewable energy development in Botswana. The Botswana Renewable Energy Support and Access Accelerator (RESA) Project, sanctioned on July 11, 2024, is set to revolutionize the nation’s energy sector by promoting renewable solutions and improving electricity access.
Botswana, endowed with substantial untapped renewable energy resources, has set ambitious targets to incorporate renewable energy into 30% of its energy mix by 2030 and 50% by 2036. The initial phase of 335MW renewable energy projects is currently in various stages of development by private sector power producers.
The new World Bank initiative will finance essential grid investments and Botswana’s first 50MW utility-scale battery energy storage system to facilitate the seamless integration and management of the initial renewable energy generation into the grid.
Additionally, the project will support the expansion of the grid to rural villages and enhance electricity services in the Southern districts of Botswana.
“With the financing support and technical assistance from the World Bank, this investment will support us to harness our rich renewable energy resources for a reliable, affordable, and sustainable energy future. This is not only critical for our own energy security but also provides an important driver of economic growth,” stated Honorable Minister of Minerals and Energy of Botswana, Lefoko Moagi.
The project will be financed through an $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.
Additionally, the project will receive technical assistance for solar, wind, and storage project development, supported by a $3.5 million grant from the Energy Sector Management Assistance Program. By combining technical assistance with public investments, the project aims to mitigate risks associated with renewable energy investments.
“The World Bank is pleased to support Botswana’s commitment to expanding 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,” said Satu Kahkonen, World Bank Country Director for Botswana.
