African Development Bank’s SEFA to provide $1 million in support of Botswana’s energy transition
Through its support for the further development of the renewable energy generation sector in Botswana, the project also contributes to the Mega Solar initiative
The approval is a great step forward in the regulator’s quest to facilitate independent power producers (IPPs), renewable energy sources and cost reflective tariffs in Botswana
The Sustainable Energy Fund for Africa (SEFA) (bit.ly/3JQ7ilg), managed by the African Development Bank (www.AfDB.org), has approved a $1 million grant to facilitate Botswana’s transition to clean energy. The technical assistance project supports the Government of Botswana in closing critical gaps in policy, regulatory and legal frameworks, which were identified at the Africa Energy Market Place (bit.ly/3pZmVyD) (AEMP 2019). These include the introduction of least-cost planning, reduction of adverse environmental impacts and support for increased private sector participation in renewable energy (RE) generation investments.
Some of the notable outputs from the project include a national Grid Code, Electricity Cost of Service Study (CoSS) and licensing framework to regulate power sector activities. The outputs from the project will contribute towards the implementation of Botswana’s first Integrated Resource Plan (IRP), thus facilitating investments in new solar PV and wind generation capacity, amounting to at least 100MW and 50MW, respectively, by 2030. Through its support for the further development of the renewable energy generation sector in Botswana, the project also contributes to the Mega Solar initiative, launched in 2021 in collaboration with Namibia and development partners, with the aim of building renewable energy capacity in the two countries, to enable electricity exports to the rest of the region.
Conceptualised under SEFA’s Green Baseload component, the project "will contribute to the development of essential building blocks to support Botswana’s energy transition", said Dr. Daniel Schroth, Acting Director for Renewable Energy and Energy Efficiency at the African Development Bank. ‘’It has been a long journey to access this AfDB grant facility,” observed Duncan Morotsi, Chief Operating Officer at the Botswana Energy Regulatory Authority (BERA), “The approval is a great step forward in the regulator’s quest to facilitate independent power producers (IPPs), renewable energy sources and cost reflective tariffs in Botswana. It was worthwhile pursuing this technical assistance from the AfDB’’.
Distributed by APO Group on behalf of African Development Bank Group (AfDB).
Communication and External Relations Department
African Development Bank
Chief Power Sector Regulations Specialist
About the African Development Bank Group:
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information: www.AfDB.org
SEFA is a Multi-Donor Special Fund that aims to unlock private sector investments that contribute to providing universal access to affordable, reliable, sustainable, and modern energy services for all in Africa, in line with the Bank’s New Deal on Energy for Africa strategy and Sustainable Development Goal 7.