Clean energy for export
US$20 mln British investment for merchant solar plant
About 59% of Namibians have access to electricity.
The single biggest direct investment from a British company into the Namibian economy was announced on Friday at Gerus, about 30 km outside Otjiwarongo, on the way to Outjo, near Hartseer, close to the border between the Kunene and Otjozondjupa regions.Solarcentury Africa and their local partners, Sino Energy, were pleased to welcome the minister of finance and public enterprises, Iipumbu Shiimi, as well as the executive director of the ministry of mines and energy, Penda Itindi, to the official groundbreaking for their first 19.3 MW solar photovoltaic power plant, a stone's throw from the Nampower Gerus substation.
Investor friendly
British high commissioner to Namibia, Charles Moore, said he is proud of the initiative, which helps to increase trade and investment between Namibia and Britain.
Solarcentury chief executive officer, Jason De Carteret, declared: “The objective of this site is to trade on the Southern African Power Pool (SAPP).”
He explained that generating power within Namibia helps with local energy security and ensures that “the jobs stay here, the investments stay here,” he said.
“Namibia is one of the most investment-friendly and stable countries in Africa. It is a very welcoming place for investors, and that is exactly what we are doing: putting our money where our mouth is,” he said.
“Namibia is blessed with interconnectivity with Zambia, South Africa, and smaller capacity into Botswana. The SAPP includes 12 countries,” he added.
Trading on day-before supply to member countries will help establish a counterflow to the power that Namibia imports from South Africa, he explained.
Project
This investment is worth US$20 million, which Shiimi immediately converted to about N$340 million.
Construction is expected to take nine months to complete, De Carteret said.
Local partner Sino Africa has been involved in the project for the past three years, and director Ferdinand Nghiyolwa said it sets a shining example for sustainable energy development in Africa.
“This is the first merchant solar plant in Namibia, and one of the first in Africa,” he pointed out, adding that it is being built with broad-based local involvement, including participation from landowners, engineering, procurement and construction (EPC) contractors, and local shareholders.
“Our country stands at the brink of an energy renaissance,” he said, and “renewable energy can play a key role.”
Contractors
EPC contractors Alensy were represented by founder and Omaruru native Norbert Dörgeloh, who said that of the more than 20 utility-scale solar plants already built in Namibia, more than 80% were developed by foreign investors and independent power producers.
None of these projects had awarded EPC contracts to local companies in full—until now. With nine solar plants constructed, Alensy is ready to take on a bigger role.
“Thank you, Jason and Ferdinand, for giving a Namibian company a chance to prove that we can do the entire scope,” he said.
Dörgeloh described Solarcentury as a foreign investor with a difference, providing “true capacity building and helping to develop our skill sets.”
Alensy has also been appointed by Solarcentury to provide EPC services for a 25 MW plant in Zambia, and the company’s employment rate is picking up dramatically, with all the work to be done, he said.
MSB
De Carteret said that Solarcentury is eager to build similar solar plants within Namibia, with 50 MW to 70 MW of clients lined up to take advantage of the Modified Single Buyer (MSB) opportunities available.
“We will build for Namibian clients,” he said.
More foreign direct investment will come to employ Namibian contractors and establish Solarcentury companies for energy trading and engineering work in Namibia, he added.
Shiimi said: “Coordination matters for development. Government has decided to improve coordination with production task forces, which include the private sector. This year we started looking at energy, and things started moving in the right direction.
“Policy matters for development, as shown by the MSB system, which encourages the private sector to invest in energy. Development needs all hands on deck,” he said, and “know-how is important.”
At the occasion, Itindi said that the recent census shows that access to electricity has improved to 59%, although 77% of Namibians who can switch on the lights live in urban areas, while only 38% do so in rural areas.
“We have fresh numbers,” he said, which allow a macro policy angle for the development of a new energy master plan for the country, with a generation mix that can bring affordability. “We are working on the master plan toward universal access,” he added.