GABORONE, July 12, 2024 - The World Bank's Board of Directors has approved its first lending operation supporting renewable energy development in Botswana. The Botswana Renewable Energy Support and Access Accelerator (RESA) Project, approved on July 11 2024, aims to transform the country's energy landscape through enabling renewable solutions and improved electricity access.
Botswana has vast untapped resources for renewable energy. It has set an admirable target to increase renewable energy to 30% of its energy mix by 2030 and 50% by 2036. 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 improve electricity services in the Southern districts.
"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," says Honorable Minister of Minerals and Energy of Botswana, Lefoko Moagi.
The project is financed through a loan of $88 million from the World Bank as well as a $30 million loan and a $4 million grant from the Green Climate Fund's Sustainable Renewables Risk Mitigation Initiative Facility. The project will also benefit from technical assistance on solar, wind, and storage project development carried out through an additional $3.5 million grant from the Energy Sector Management Assistance Program. By combining technical assistance and public investments, the project will help mitigate the risks in renewable energy investments.
"The World Bank is pleased to support 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," says Satu Kahkonen, World Bank Country Director for Botswana.
