Renewable energy transitions face ownership and cost challenges in Africa

In Botswana, the launch of the 100 MW Mmadinare Solar PV Cluster marks a milestone in the nation’s energy transition. While the project reduces reliance on electricity imports from South Africa, concerns have been raised regarding the ownership of the generated wealth. Although the project is managed through Botswana-registered companies, the ultimate shareholder is Scatec Solar Netherlands B.V., controlled by the Norwegian firm Scatec ASA. This foreign ownership means that while electricity generation is localized, a significant portion of the commercial returns flows outside the country.

In Zimbabwe, Turk Mine has demonstrated the economic advantages of renewable energy by utilizing a 4.4-megawatt solar plant. A parliamentary committee reported that the mine purchases solar-generated electricity at 8 cents per unit, significantly lower than the 19 cents per unit charged by the national utility, ZESA. The solar facility, operated under a build-operate-transfer arrangement with Kenya-based Equator, has also provided environmental benefits by reducing coal usage and water consumption. However, the mine remains dependent on the national grid at night and faces regulatory hurdles regarding net metering and surplus electricity integration.