Market Trends of Botswana Renewable Energy Industry
This section covers the major market trends shaping the Botswana Renewable Energy Market according to our research experts:
Solar Energy is Expected to Dominate the Market
- Due to the declining cost of solar modules and the adaptability of these systems for a variety of uses, including electricity production and water heating, the solar segment is anticipated to hold the greatest market share over the projection period.
- In renewable energy, the country only has a total installed capacity from solar energy. According to IRENA, the country's total solar energy installed capacity accounted for 6 MW in 2021, which has been stagnant for the last few years.
- With the upcoming solar projects and government policies toward renewable power, the solar energy segment is expected to grow in the forecast period.
- In February 2022, Botswana's Ministry of Mineral Resources, Green Technology, and Energy Security (MMGE) requested bids from national and international Independent Power Producers (IPPs) to design, build, own, operate and maintain a 200 MW capacity (2*100 MW) Concentrated Solar Power (CSP) plant.
- The proposed plant is a component of the nation's Integrated Resource Plan, which aims for the acquisition or construction by the government of 795 megawatts of new generation capacity by 2040. According to the Botswana Energy Regulatory Authority, at least 61% of the new projects would be renewable, including solar and wind power facilities.
- Thus, owing to the above points, solar energy is expected to dominate the market in the forecast period.
Understand The Key Trends Shaping This Market
Download Sample
Supportive Government Policies and Programs Driving the Market Demand
- The majority (99%) of Botswana's 890MW installed capacity comes from coal resources, and the nation is working to rebalance the power mix by enlisting the private sector in the construction of additional renewable energy infrastructure. In 2021, according to IRENA, the total renewable energy capacity in Botswana accounted for 6 MW.
- According to the country's Integrated Resource Plan (IRP), there are strategic engagements by the Government of Botswana (GoB) on the country's transition to clean energy. In this regard, the program contributes to the introduction of at least 50MW and 100MW wind and solar PV capacity, respectively - in the period 2024 to 2027.
- Botswana wants to utilize renewable energy sources to attain economic energy security and independence. The country has significant untapped potential for renewable energy sources, particularly in the areas of solar, wind, and bioenergy. Botswana declared at the end of 2020 that by 2030, renewable energy will make up at least 15% of the nation's energy mix, and by March 2036, it would make up 50%.
- The GoB is making investments in local, national, and regional grid infrastructure to increase Botswana's exporting capabilities. The Botswana Power Corporation (BPC), has also started building a distribution network, which includes electrifying 116 rural communities, 44 of which have never had electricity before and expanding the remaining 72 villages.
- Owing to the above points and the government's target in support of renewable energy, the market is expected to grow in the forecast period.
