60MW solar plant to be constructed in Namibia

A 60MW solar power plant is set to be developed in Namibia. The Namibian authorities issued a green light for the development as part of the country’s commitment to climate change targets and reducing reliance on fossil fuels. The objectives were committed to under the recent COP28 framework in Dubai.

Solarcentury Africa and SolNam Energy received the go ahead for the project construction and the project, is expected to reach financial close by the end of 2024. The electricity generated will be fed into the SAPP from the Kokerboom substation in southern Namibia.

READ:Vestas awarded contract for 108MW wind power project in South Africa

Southern African Power Pool

This project will be Solarcentury Africa’s second merchant project in Namibia and will be primarily focused on supplying Namibian customers. It follows the 20 MWp Gerus solar PV plant that is due to enter construction in the coming months, a strategy made possible by Solarcentury Africa’s membership of the Southern African Power Pool (“SAPP”) as a market participant.

Similarly, other companies like Emerging Markets Energy Services Company (EMESCO) are also investing in renewable energy infrastructure in Namibia, with a 125 MW photovoltaic solar power plant approved for construction.

These projects are being developed under the Modified Single Buyer Scheme (MSB), a framework established by the Namibian government to incentivize IPPs to invest in renewable energy and sell their electricity output to the utility. Unlike the previous model, the MSB allows companies like Solarcentury, SolNam, and EMESCO to produce electricity in Namibia and distribute it through the regional SAPP common market, thus fostering regional energy integration and sustainability efforts.