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Botswana Power Awards 100-Megawatt Solar Deal to Chinese Group

An array of photovoltaic panels at a solar plant that partially powers the Pan African Resources Plc Elikhulu Tailings Retreatment Plant, which extracts traces of gold from old mine waste, in Evander, South Africa, on Friday, Aug. 4, 2023. In May 2022, fed up with the Eskom-imposed electricity rationing that forced the company to curtail its power use by as much as 20%, gold mining company Pan African decided to hire JUWI to build a 10-megawatt solar farm to power its treatment plant east of Johannesburg. Photographer: Guillem Sartorio/Bloomberg (Guillem Sartorio/Bloomberg)

(Bloomberg) -- A group of Chinese companies led by China Harbour Engineering Co. has won a contract to build a 100-megawatt solar plant in Botswana, the country’s second utility-scale renewables facility. 

China Harbour is partnering with China Water and Electric Development Co. and local investors for the project which is due to be commissioned in the second quarter of 2026. Zhitong Finance put the value of the contract at $78.3 million. President Mokgweetsi Masisi attended the contract signing Monday in Jwaneng, a diamond mining town 200 kilometers (124 kilometers) west of the capital, Gaborone.

Botswana, a semi-arid country dominated by the Kalahari desert, receives some of the world’s highest levels of sunshine throughout the year, but coal dominates electricity production, with renewable energy currently accounting for just 2% of of generation.

Under the government’s revised Integrated Resource Programme that details the generation to be bought or installed until 2040, Botswana intends to ramp up its renewable-energy generation to 50% of demand by 2036.

In March, Scatec ASA began building a 100-megawatt solar-power plant in the country’s north east, with the first 60 megawatts due to come online this year.

The Ministry of Minerals and Energy is finalizing procurement of a 200-megawatt concentrated solar-thermal power plant and an additional 100-megawatt solar facility, Masisi said. 

The government is also working with the World Bank to develop two 50-megawatt battery-storage systems that will support the Jwaneng and Scatec projects, the president said. 

©2024 Bloomberg L.P.