NamPower says it has signed a Power Purchase and Transmission Connection agreement with CERIM Luderitz Energy for the development of the 50 megawatts Luderitz wind power plant on a Build-Own-Operate Basis.
The agreement also involves the associated transmission connection infrastructures required to connect the power plant to the Namibian Grid.
The power plant, which will cost approximately N$1.4 billion, will be located about 16km south of the Luderitz Town.
According to the Project Agreements, CERIM will be responsible for the complete development of the power plant, which includes the financing, construction, operation, and maintenance thereof, while NamPower will be the exclusive off taker of electricity generated from the power plant for the 25-year Power Purchase (PPA) Term.
“This project will contribute significantly to our supply portfolio when combined with other generation projects that forms part of the Integrated Strategic Business Plan (ISBP). Considering the power supply situation in the Southern African Power Pool, the commissioning of this project come July 2025 will displace 50MW of imports which is a step in the right direction,” NamPower’s Managing Director Simson Kahenge Haulofu said.
The 50MW Luderitz Wind IPP Power Project forms part of NamPower’s planned generation projects under its Integrated Strategy and Business Plan (ISBP) for the 2020-2025 period.
The ISBP outlines the company’s strategic focus, which includes the prioritisation of local renewable resources over the five years (2020-2025) in line with the Ministry of Mines and Energy (MME)’s determination on the development of generation capacities.
The project will further contribute towards the fulfilment of national policy goals such as the Namibia Integrated Resource Plan (NIRP) for the electricity sector, the National Energy Policy, the Renewable Energy Policy as well as the fifth National Development Plan (NDP5).
Since turning to renewable energy as another form to enrich the national electricity needs, NamPower is forging ahead in meeting its 2025 target, in which it aims to add 150MW of its own power generation, as well as 70MW from Independent Power Producers (IPPs), as driven by the government’s NRIP.
This comprises 40MW of biomass, 20MW of solar PV, 40MW of wind and 50MW of firm power. In the same vein, it intends on procuring 70MW new capacity from IPPs through competitive procurement, which includes 20MW of Solar Photovoltaic and 50MW of wind.
The 50MW Luderitz Wind IPP Power Project will contribute towards local economic employment creation as semi-skilled and unskilled labour which will be sourced from the //Kharas Region.
CERIM Luderitz Energy representative, Josephine Nghimtina, indicated that it was a privilege that comes with great responsibility as a previously disadvantaged company to contribute towards the energy sector which seeks to have power stability.
“CERIM Luderitz Energy will do everything in their power to ensure that the project is completed within the Project scope and time,” she said.
