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Power and Infrastructure Finance in Botswana: A Plain Guide

In Botswana, Botswana Power Corporation (BPC) is the state utility and main buyer of power, and the Botswana Energy Regulatory Authority (BERA) licenses generators and approves power purchase agreements. Botswana is adding solar IPPs to reduce its reliance on coal and on imports, and lenders look closely at the PPA with BPC.

Updated

How is the power sector in Botswana set up?

Botswana Power Corporation (BPC) generates, transmits, and distributes electricity, and buys power from independent power producers (IPPs).

The Botswana Energy Regulatory Authority (BERA) was set up under the Botswana Energy Regulatory Act 2016 and started work on September 1, 2017. It regulates electricity, petroleum, coal, gas, and renewable energy.

BERA reported that in the year to March 2023, imports met just under half of demand, because availability at the Morupule A and B coal plants was low.

Key projects and programmes

These are public, well-documented examples from the sources below. They show how the market works.

  • Morupule A and Morupule B coal power stations, run by BPC. Morupule B has been under a remedial works programme.
  • Mmadinare solar PV (100 MW), built under an IPP arrangement in two phases. BPC reports the first 50 MW was commissioned in March 2025.
  • In August 2024, BPC signed 25-year PPAs with six citizen-owned IPPs for eight solar PV projects totalling about 26 MW.

How are projects financed?

IPP projects in Botswana are usually financed with sponsor equity and loans from local and regional banks and DFIs, backed by a long-term PPA with BPC approved by BERA.

BERA has said some earlier tender winners could not raise funding, so later rounds were re-tendered. Strong sponsors and funded structures matter.

What should investors, lenders, and off-takers check?

Common checks include:

  • The PPA with BPC: length, tariff, currency, and termination terms.
  • BERA licences and approvals, and grid connection.
  • Citizen ownership or local participation rules that apply to the tender.
  • The sponsor's ability to fund the project, since some earlier PPAs were withdrawn when funding failed.

Where does Vektron Merchants fit?

This guide is public information about Botswana. Vektron Merchants does not look for deals there. Vektron Merchants is a marketing agency for energy, commodities, infrastructure financing and industrial firms. We find buyers, offtakers, lenders and partners for companies in these four industries, and we secure meetings with the people who sign.

Frequently asked questions

Who regulates electricity in Botswana?

The Botswana Energy Regulatory Authority (BERA), which started work on September 1, 2017.

Who buys power from IPPs in Botswana?

Mainly Botswana Power Corporation (BPC), under power purchase agreements approved by BERA.

Sources

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General information, not investment, legal or tax advice. Facts are from the public sources listed and may change.