World Bank supports renewable energy development in Botswana

GABORONE, July 12, 2024 — The World Bank Board of Directors has approved the first lending operation to support the development of renewable energy in Botswana. The Botswana Renewable Energy Support and Access Accelerator (RESA), approved on July 11, 2024, aims to transform the country’s energy landscape by enabling renewable solutions and improving access to electricity.

Botswana has vast, untapped renewable energy resources. It has set an admirable target to increase the share of renewable energy in the energy mix to 30% by 2030 and 50% by 2036. An initial wave of 335 MW of renewable energy projects is already in various stages of development by private sector power producers. This new World Bank project will finance essential grid investments and Botswana’s first utility-scale 50 MW battery storage system to enable seamless integration and management of the first wave of renewable energy generation into the grid. In addition, the World Bank project will support the continued efforts of the Botswana government to increase energy access by financing the extension of the grid to rural areas and improving energy services in the southern districts.

“With financial support and technical assistance from the World Bank, this investment will help us harness our abundant renewable energy resources for a reliable, affordable and sustainable energy future. This is not only critical to our own energy security, but also an important driver of economic growth,” says Botswana’s Honourable Minister of Minerals and Energy, Lefoko Moagi.

The project is being financed through an $88 million loan 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 for the development of solar, wind and storage projects, provided through an additional $3.5 million grant from the Energy Sector Management Assistance Program. By combining technical assistance and public investment, the project will help mitigate the risks of renewable energy investments.

“The World Bank is pleased to support Botswana’s commitment to expanding domestic energy production through 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.