The World Bank’s Board of Directors has approved its inaugural lending operation to support renewable energy development in Botswana.
The project is funded 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.
Botswana boasts untapped renewable energy resources and aims to increase renewable energy to 30% of its energy mix by 2030 and 50% by 2036.
The initial phase of 335MW renewable energy projects is already progressing through various development stages by private sector power producers.
This new World Bank initiative will finance critical grid investments and Botswana’s first 50MW utility-scale battery energy storage system to ensure the smooth integration and management of the initial wave of renewable energy generation.
A media report says the World Bank project will bolster the Government of Botswana’s ongoing efforts to enhance energy access by funding grid expansion to rural villages and improving electricity services in the Southern districts.
“With financial support and technical assistance from the World Bank, this investment will enable us to leverage our abundant renewable energy resources for a reliable, affordable, and sustainable energy future.
“This is vital for our energy security and is a key driver of economic growth,” stated Honorable Minister of Minerals and Energy of Botswana, Lefoko Moagi, in a statement issued by the World Bank.
Additionally, the project will receive technical assistance for solar, wind, and storage project development through a $3.5 million grant from the Energy Sector Management Assistance Program.
By combining technical assistance and public investments, the project aims to mitigate risks associated with renewable energy investments.
“The World Bank is pleased to support Botswana’s dedication to expanding domestic energy generation with renewable solutions.
“Beyond financing, the World Bank will offer technical assistance to facilitate further renewable energy projects.
“This initiative is a crucial part of our commitment to fostering sustainable and inclusive growth in Botswana,” stated Satu Kahkonen, World Bank Country Director for Botswana.
