Oman firm formally awarded 500MW solar deal in Maun
Mbongeni Mguni | Monday April 6, 2026 06:00
The contract represents the largest renewable energy project for the country, eclipsing the 120MW plant currently being developed in Mmadinare and led by Norwegian firm, Scatec ASA.
A notice by the Ministry of Minerals and Energy recently indicates that Omani green energy firm, Naqaa Sustainable Energy LLC, has been awarded the contract to design, finance, build, own, operate, maintain and decommission the 500MW plant over 25 years.
Typically, such contracts involve the developer bearing the funding and other risks associated with the project, while the Botswana Power Corporation enters into a Power Purchase Agreement for offtake.
The envisaged solar power plant will feature the country’s first utility scale Battery Energy Storage System (BESS), which will allow for the storage of electricity and its strategic dispersal into the grid.
The latest developments come after high level engagements featuring President Duma Boko and members of the Omani government last year, both in the Gulf region and in Botswana. Naqaa Sustainable Energy is a subsidiary of O-Green which in turn is backed by the Oman Investment Authority, a sovereign wealth fund with assets above $53 billion.
Announcing the deal last year, Boko said the move was part of government’s efforts to reshape the country’s energy landscape and reduce reliance on imported electricity.
“This initiative will significantly reduce the cost of electricity production,” he said. “As a result, electricity prices for consumers will go down, the base-load grid will be stabilised, and government subsidies to the Botswana Power Corporation will no longer be necessary.”
The scale of the planned power plant can be seen in the fact that to date, installed grid-connected solar capacity in commercial operation in the country amounts to 104MW or 21 percent of the effective installed generation mix.
Minerals and Energy minister, Bogolo Kenewendo, recently said government wants renewable energy to constitute 42% of installed capacity in the 2026-27 financial year.
Botswana’s current peak demand is about 700MW with an average growth rate of five percent per annum, driven by population growth, mining activity and expanded household electrification.
The country’s agreement with Oman involves up to three gigawatts of energy projects, which include the 500MW solar plant in Maun. While details have not been provided about the other planned projects, reports from the Gulf state suggest that the Omanis have an interest in partnering with Botswana Oil, amongst other initiatives.