Botswana Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in botswana, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
Select Country Guide
Energy
Last published date:

Overview 

Botswana’s energy sector is primarily powered by coal-fired plants, supported by the country’s vast coal reserves, estimated at 212 billion tons.  Coal-fired power plants form the backbone of Botswana’s energy framework, with a current peak demand of approximately 610 MW.  The Morupule B Power Plant, built by China, has a theoretical capacity of 600 MW but has faced technical challenges, operating at partial capacity and driving Botswana to rely on expensive electricity imports, primarily from South Africa.  The Morupule A Power Plant contributes 132 MW to the national grid.  Additionally, two diesel-powered emergency plants—Orapa (90 MW) and Matshelagabedi (105 MW)—are used to mitigate shortfalls.

The Government of Botswana (GoB) is committed to scaling up power production to 8,000 MW by 2029, reducing electricity costs by 30 percent, and becoming a net exporter of electricity in the region.  To support this, the GoB is investing in national and regional grid infrastructure.  A new 600 MW coal-fired power plant is under construction in Mmamabula by Jindal Steel & Power Ltd.  The Botswana Power Corporation (BPC), a state-owned enterprise (SOE) responsible for electricity generation, transmission, and distribution, has historically monopolized the sector.  However, the 2007 Amendment to the Electricity Supply Act allows private companies to participate in power generation and sign Power Purchase Agreements (PPAs) with BPC.  On July 15, 2025, the government began unbundling BPC to separate generation operations from transmission and distribution.

The Botswana Energy Regulatory Authority (BERA) oversees the energy sector, ensuring a competitive environment aligned with international best practices.  The Integrated Resource Plan (IRP), launched in 2020, provides a roadmap for reliable, safe, and affordable electricity supply, listing all planned energy projects.  Botswana also launched the Rooftop Solar (RTS) Program in October 2020, supported by the U.S. Government’s Southern Africa Energy Program (SAEP).  This initiative enables domestic consumers to install solar systems and sell excess electricity back to BPC.

Botswana has significant potential for solar energy, with annual Direct Normal Irradiation of 3,000 kWh/m²/a and average insolation of 21 MJ/m².  The country also has untapped wind and coalbed methane resources.  Wind speeds averaging above 7 m/s in the South-West, Central, and Eastern regions offer potential for wind power generation, while coalbed methane reserves in Central and Northeast Botswana could support natural gas-intensive industries.  Biomass energy potential is estimated at 32 million gigajoules (GJ) per year, derived from cow dung and municipal solid waste.  Feasibility studies have identified opportunities for biofuel production, including biodiesel from Jatropha curcas and ethanol from sweet reed.

Botswana relies heavily on imports of refined petroleum products, primarily from South Africa, as it lacks proven crude oil reserves or refineries.  The country consumes approximately 21,000 tons of Liquified Petroleum Gas (LPG) annually, sourced through South Africa.  Botswana Oil Limited (BOL), established in 2013, serves as the national oil company, ensuring fuel supply security and managing state-owned strategic fuel reserves.  Effective April 1, 2024, the GoB allocated BOL a 90 percent import quota for petroleum products.
Botswana’s energy sector offers diverse investment opportunities, including coal, solar, wind, biomass, and biofuels, supported by government initiatives to modernize infrastructure, diversify energy sources, and promote sustainable development.

Sub-sector Best Prospects 

Energy equipment, solar heating systems, solar photovoltaic equipment, engineering services related to power generation, transmission, and distribution are the best sub-sector prospects.

Opportunities 

The GoB is actively improving the regulatory environment and expanding grid infrastructure, creating significant opportunities for energy project development for both domestic use and export.  The GoB’s growing openness to independent power producers (IPPs) further supports investment in the energy sector.  These efforts are driven by the government’s focus on increasing self-reliance on local energy resources, diversifying the energy mix, promoting sustainable development, and ensuring energy security.
Botswana has substantial natural gas reserves (coalbed methane) in Central and Northeast Botswana.  Once fully developed, these reserves could generate significant downstream opportunities for natural gas-intensive equipment and services, further enhancing the country’s energy sector.
 

Resources:

  •  Botswana Ministry of Minerals and Energy
  • Botswana Investment & Trade Centre
  • Botswana Power Corporation (BPC)
  • Botswana Ministry of Trade and Entrepreneurship
  • Botswana Unified Revenue Service (BURS), Customs and Excise Division

×

Global Business Navigator Chatbot Beta

Welcome to the Global Business Navigator, an artificial intelligence (AI) Chatbot from the International Trade Administration (ITA). This tool, currently in beta version testing, is designed to provide general information on the exporting process and the resources available to assist new and experienced U.S. exporters. The Chatbot, developed using Microsoft’s Azure AI services, is trained on ITA’s export-related content and aims to quickly get users the information they need. The Chatbot is intended to make the benefits of exporting more accessible by understanding non-expert language, idiomatic expressions, and foreign languages.

Limitations

As a beta product, the Chatbot is currently being tested and its responses may occasionally produce inaccurate or incomplete information. The Chatbot is trained to decline out of scope or inappropriate requests. The Chatbot’s knowledge is limited to the public information on the Export Solutions web pages of Trade.gov, which covers a wide range of topics on exporting. While it cannot provide responses specific to a company’s product or a specific foreign market, its reference pages will guide you to other relevant government resources and market research. Always double-check the Chatbot’s responses using the provided references or by visiting the Export Solutions web pages on Trade.gov. Do not use its responses as legal or professional advice. Inaccurate advice from the Chatbot would not be a defense to violating any export rules or regulations.

Privacy

The Chatbot does not collect information about users and does not use the contents of users’ chat history to learn new information. All feedback is anonymous. Please do not enter personally identifiable information (PII), sensitive, or proprietary information into the Chatbot. Your conversations will not be connected to other interactions or accounts with ITA. Conversations with the Chatbot may be reviewed to help ITA improve the tool and address harmful, illegal, or otherwise inappropriate questions.

Translation

The Chatbot supports a wide range of languages. Because the Chatbot is trained in English and responses are translated, you should verify the translation. For example, the Chatbot may have difficulty with acronyms, abbreviations, and nuances in a language other than English.

Privacy Program | Information Quality Guidelines | Accessibility