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Solarcentury Africa Limited and its local partner, Sino Energy (Pty) Limited, have announced the successful financial close of a pioneering 20 MWp solar photovoltaic (PV) plant in Namibia. This project will be the first fully merchant independent power producer in the region, trading all its renewable energy on the Southern African Power Pool (SAPP).
The solar plant aims to address the increasing power demands of the region without the need for long-term Power Purchase Agreements (PPAs), marking a significant shift in Solarcentury Africa’s strategy to become a power trader in Southern Africa. Fully funded by Solarcentury Africa, the plant is scheduled for commissioning in the third quarter of 2025. The electricity generated will be sold through the company’s trading arm, Solarcentury Trading, which is a member of the SAPP. Sino Energy served as the co-developer for this initiative.
Jason De Carteret, CEO of Solarcentury Africa, emphasized the project’s importance, stating, “This trading project is a significant milestone not only for Namibia but the entire Southern African region, offering a forward-looking alternative to the traditional energy procurement model.” He highlighted that the fully merchant structure allows for direct trading into the regional grid, facilitating quicker implementation of renewable power plants with increased flexibility.
Ferdinand Nghiyolwa of Sino Energy added, “This project demonstrates Namibia’s commitment to renewable energy and opens the door for future merchant solar projects across the region, proving the viability of the SAPP market.”
The new solar plant is expected to generate 51 GWh of electricity annually, offsetting approximately 8,600 tonnes of carbon dioxide emissions. The project represents a significant investment of around US$20 million, marking one of the largest British investments in Namibia to date. Alensy Energy Solutions Pty Limited, a leading Namibian EPC contractor, has been appointed to construct the plant, creating over 150 local jobs. Situated between Otjiwarongo and Outjo in the Otjozondjupa region, the facility will connect to the NamPower Gerus substation and the main North-South transmission network.
The project has benefitted from a supportive sector environment and has secured a generation license from Namibia’s Electricity Control Board (ECB), connection agreements from utility NamPower, and an Environmental Clearance Certificate from Namibia’s Ministry of Environment. It also enjoys the backing of the Namibia Investment Promotion and Development Board (NIPDB).
While the plant intends to sell all its power on the SAPP, it will also have the flexibility to sell power within Namibia to contestable customers, such as large mining and industrial operations, under the new Modified Single Buyer (MSB) rules.
This successful initiative sets a precedent for future merchant projects in the region, providing a viable alternative to traditional long-term utility PPAs requiring sovereign guarantees. Solarcentury Africa is already advancing plans for additional merchant projects in Zambia, Botswana, and further developments in Namibia. |
