Botswana secures $100 million financing to build first 100-megawatt Tati Solar Project

Botswana secured $100 million in financing to build its first large-scale solar power plant, the 100-megawatt Tati Solar Project.

The project will provide electricity to regional markets as investors respond to growing demand for power and the potential returns from excess generation.

Etavi Renewables and Shumba Energy developed the project that targets to begin commercial operations in 2027 after it completes its financing arrangements with support from South Africa’s FirstRand Ltd. and Rand Merchant Bank (RMB). It will also sell electricity into the Southern African Power Pool (SAPP).

SAPP is a strategic regional electricity trading platform providing energy for 360 million people across 12 countries with significant potential for renewable energy expansion.

According to the International Energy Agency (IEA), about 600 million people in Africa still lack access to electricity. An estimated half of the population in Southern Africa lacks energy access.

A report noted that the Tati Solar Project will test investor appetite for market-based renewable projects in Africa. Also, it could help position Botswana as a net electricity supplier in the region, reduce dependence on imported electricity, and diversify generation.

Siyanda Mflathelwa, RMB’s head of infrastructure sector solutions, said the bank arranged and underwrote the entire financing package.

“We found a financing structure that is commercially viable at utility scale for a pure market view into the SAPP and that’s great, because it increases the volumes that are now traded on the SAPP day-ahead market.”

Granny Lesiamang, Principal Advisor, AMDA Climate & Energy Advisory, told Gas Outlook that what is happening in Botswana reflects a much broader transformation taking place across Africa, where renewable energy is increasingly being driven by economics, energy security considerations, and industrial development priorities, not only climate commitments.

She said projects such as Mmadinare, Jwaneng and Tati focus on expanding utility-scale solar generation, while the 500 MW Maun Solar and Battery Storage Project represents the next phase of development by integrating large-scale storage technology into the electricity system.

“Across Africa, countries such as South Africa, Namibia, Kenya, Zambia, Morocco and Egypt are scaling up solar because renewable energy increasingly represents the most cost-effective pathway to expanding electricity access and supporting economic growth.”

“The key shift is that renewable energy is no longer viewed as an alternative or supplementary technology. It is becoming core national infrastructure,” Lesiamang said. “Botswana’s opportunity is particularly significant because the country combines abundant solar resources, available land, political stability and access to regional electricity markets through SAPP.”

Botswana long-term energy strategy

Maduo Mosothwane, Director of Projects and Programs, Women in Energy (WinE) Botswana, told Gas Outlook that Botswana’s investment in the 100 MW Tati Solar Project is more than a standalone renewable energy investment.

She said it demonstrates Botswana’s commitment to scaling up utility-scale renewable energy through private sector participation, improving the resilience and competitiveness of its electricity sector, and advancing the national objective of universal access to electricity by 2030.

“More broadly, it represents an important early step in Botswana’s transition towards a diversified, low-carbon, and export-oriented electricity sector that supports economic growth while strengthening regional energy integration.”

She said Botswana has relied on a combination of domestic coal-fired generation and imported electricity through the Southern African Power Pool (SAPP).

“While this has helped meet growing electricity demand, it has also exposed the country to regional supply shortages, price volatility, and operational risks. The project is closely aligned with Botswana’s Integrated Resource Plan (IRP), which targets 50% of the country’s electricity generation mix from renewable energy by 2030.

“Equally important is Botswana’s National Energy Policy (NEP), which promotes regional energy trade and cross-border energy cooperation as key pillars of the country’s energy future. Botswana’s strategic central geographical location within the SAPP network, connecting Southern Africa’s interconnected transmission system, provides a unique opportunity to position the country as a regional energy trading hub.”

Commercial viability for future renewable energy investments in Africa

Lesiamang noted that one of the most innovative aspects of the Tati Solar Project is its differing financing and commercial structure. She said traditionally, many renewable energy projects in Africa have relied heavily on government-backed Power Purchase Agreements, sovereign guarantees or concessional financing from development institutions.

While these models have successfully enabled important projects such as Botswana’s Mmadinare Solar Complex and other renewable developments across the continent, she added that Tati represents an evolution towards a more market-driven approach.

“The project has been structured around merchant power sales, allowing electricity to be traded through the Southern African Power Pool rather than depending exclusively on a single domestic utility off-taker.”

According to her, the project financial structure is significant because it demonstrates that utility-scale renewable projects in Africa can increasingly become commercially bankable based on market fundamentals, regional integration and investor confidence—not only through government support mechanisms.

“The importance of this cannot be overstated. One of Africa’s greatest barriers to renewable energy expansion is access to affordable capital. If projects like Tati successfully demonstrate that renewable energy can generate competitive financial returns through regional electricity markets, it could unlock greater private-sector investment across the continent.

“For Botswana specifically, this strengthens the country’s attractiveness as a renewable energy investment destination and complements other emerging projects such as the Maun Solar and Battery Storage Project, which further demonstrates increasing confidence in Botswana’s renewable energy sector,” she added.

Reduce Botswana’s dependence on imported electricity

Mosothwane noted that the project addresses one of Botswana’s most pressing energy challenges: its dependence on imported electricity. She said despite its abundant solar resource, Botswana has historically relied on imports from neighbouring countries through SAPP to supplement domestic generation.

“The scale of this dependence is significant. Between the fourth quarter of 2023 and the third quarter of 2024, Botswana imported approximately 1.37 TWh of electricity, accounting for around 30% of the country’s total electricity distributed. These constraints have also contributed to periodic load shedding, underscoring the need to diversify domestic electricity generation.”

The Tati Solar Project represents more than an additional 100 MW of capacity, Mosothwane said. It will also strengthen Botswana’s energy security, reduce exposure to volatile import prices, and improve the resilience of the national electricity system.

As Botswana expands its renewable energy portfolio in line with its Integrated Resource Plan, Mosothwane said the project will enable greater participation in regional electricity trade, strengthen grid resilience, and increase the availability of clean electricity across interconnected markets.

Strengthen Botswana’s position in the regional energy market

Lesiamang added that the development of projects such as the Tati Solar Project creates an opportunity for Botswana to increasingly participate as an electricity supplier and trader.

She noted that solar generation has particularly strong potential within SAPP because daytime electricity production aligns well with regional demand patterns.

“By supplying competitively priced renewable electricity into the Day-Ahead Market and through bilateral agreements, Botswana can strengthen regional energy security while creating opportunities for electricity exports,” Lesiamang said.

“Beyond electricity generation itself, successful implementation of the Tati Solar Project sends an important signal to international investors that Botswana has the regulatory frameworks, natural resources, transmission infrastructure and investment environment required to support large-scale Independent Power Producers.”

In the long-term, battery storage could position Botswana as one of Southern Africa’s emerging clean energy hubs,” Lesiamang added.