Africa-Press – Botswana. Parliament has on Thursday authorised government to source a loan not exceeding P1.2 billion (US$ 88 million) from the International Bank for Reconstruction and Development (IBRD).
This was after the Vice President and Minister of Finance, Mr Ndaba Gaolathe presented the Botswana Renewable Energy Support and Access Accelerator Project Loan Bill before Parliament, motivating for the financing of renewable energy grid integration to improve electricity provision in selected rural areas.
Mr Gaolathe revealed that his ministry had approached IBRD as well as the Green Climate Fund for a loan facility and grant to finance renewable energy support.
He said Botswana was a country well endowed with excellent solar and wind resources, which he said offered the promising opportunity for clean and affordable electricity generation.
“Recognising this potential, the country has set ambitious targets to diversify domestic electricity production through renewable energy resources.
These policy advancements demonstrate that Botswana is committed to sustainable energy development, reducing reliance on fossil fuels and enhancing energy security through a clean, resilient energy mix,” Mr Gaolathe said.
He further said this was also in line with government’s ambition to reduce electricity costs by 30 per cent, with the transition towards renewable energy enhancing affordability, improve energy security and drive long term economic benefits for the country.
Mr Gaolathe said the country was determined to address its energy constraints, which he said had been primarily caused by the under performance of Morupule B coal fired power station. “Currently, Botswana’s electricity generation is highly reliant on two coal fired power stations, Morupule A and Morupule B.
As of 2021, Botswana’s total installed electricity generation capacity stood at 892 MW compared to a peak demand of 627 MW. Since it’s commissioning in 2012, Morupule B has faced persistent operational challenges, preventing the station from operating at full capacity,” Mr Gaolathe said.
He explained that as a result of unreliable power supply from Morupule B, Botswana had to import electricity from neighbouring countries at a premium price, exacerbated by regional power generation deficit. “This situation underscores the critical need for energy diversification, driving the government’s commitment to accelerating renewable energy adoption in enhancing the country’s energy security,” Mr Gaolathe said.
He said government was working on rehabilitating and upgrading the country’s electricity network, including in border villages that had previously relied on cross border electricity supply from South Africa.
“Electrification projects are progressing at different stages across affected districts. In Kgatleng, infrastructure upgrades were successfully completed in 2024 ensuring greater energy independence.
Meanwhile in Kgalagadi, feasibility studies and planning are ongoing to determine the best solutions for improving power supply in the region,” Mr Gaolathe said.
He said this reflected government’s commitment to strengthening national energy security, reducing dependence on external power sources and ensuring stable electricity supply for all communities.
For More News And Analysis About Botswana Follow Africa-Press
