The Development Bank of Namibia (DBN) has so far invested over N$1 billion funding renewable projects in the country.
Figures from the bank show that its commitments in the field of renewable energy now amount to N$1.038 billion, encompassing finding for 87.9 MW from 13 projects.
The revelation by the bank comes as it inked a funding agreement for Rosh Pinah Solar Park (RPSP), expected to generate 5.4 MW for the operational energy requirements of Rosh Pinah Zinc Corporation (RPZC).
The establishment of Rosh Pinah Solar Park is expected to reduce the cost of energy to run the mine, diversify its sources of energy and improve its sustainability, and comes at a time when RPZC is in the process of expanding its operations, a process which will require additional supplies of electricity.
RPSP is owned and managed by two Namibian entities, Otesa Energy Projects, the majority shareholder, and Emesco Energy (Namibia). According to the joint venture agreement, Otesa Energy Projects will construct the plant, while Emesco will develop the plant.
Rosh Pinah Solar Park Director and Shareholder, Elmo Kalyamo, said the facility will supply 30% of RPZC’s power requirements over the 15-year duration of the power purchase agreement (PPA).
“This will reduce RPZC’s emissions of greenhouse gases by 6% annually at a company level. Emissions of CO2 produced by utility supplied power in the //Kharas Region will be reduced by 14,242 tons.”
Finance for Rosh Pinah Solar Park is the second renewable energy project financed using the Bank’s Climate Adaptation Facility.
DBN CEO Martin Inkumbi said the institution is committed to the development of renewable energy generation, and the benefits that it brings to economic activity and socio-economic wellbeing in Namibia.
“Particular development benefits of the finance include preserving sustainability of the Mining and Quarrying sector by reducing costs to a significant producer, making employment offered by RPZC more sustainable, as well as alleviating pressure on the electricity grid. Pressure on the grid is driven by growing demand from industry as well as expansion of the grid to reach previously unconnected households. As a result of demand outstripping installed generation capacity,” he said.
“By financing renewable energy generated by Independent Power Producers (IPPs), DBN aims to reduce cash flows out of the country, increase the amount of locally generated electricity, reduce future costs associated with developing and maintaining cross-border transmission infrastructure as well as enhancing security of supply which may be complicated by threat of disruption of export operations.”
“The Bank has developed a sound track record in financing IPPs generating renewable energy since developing the original industry financing model for Omburu Photovoltaic Park, as well as Ombepo Wind Farm near Luderitz.”
Namibia is a net importer of electricity from South Africa and the Southern African Power Pool (SAPP) and in December 2021, the country generated 89,054 Megawatt hours (MWh) but had to import 263,899 MWh.
