Emesco Energy Namibia (Emesco) has secured equity financing for its 125MWp solar photovoltaic (PV) plant to be built in Namibia’s //Kharas Region.
The initial phase of the Schonau Solar Energy PV project, combining 50 MW of PV solar with a 70 MWh battery energy storage system, is estimated to cost N$1.3 billion.
Emesco’s Commercial Director, Pieter Rossouw, told M&E that the company has raised N$390 million through equity financing, covering 30% of the project cost.
The company now seeks N$910 million in a blended finance structure as debt participants, in partnership with the Development Bank of Namibia (DBN), to cover the remaining expenses, based on a 70/30 debt and equity ratio.
“Emesco has secured the necessary equity for the project and is now raising debt financing from local development and commercial lenders. The company has partnered closely with these lenders throughout the development phase, aiming to reach financial close by the end of this year,” said Rossouw.
Considering the long-term project life, Emesco is looking at a debt tenure of 15 to 20 years to enhance the project’s robustness.
Emesco’s Country Manager Nico Knight said negotiations for the debt financing are at an advanced stage and are set to be finalised by year-end, with construction slated to start in the first quarter of 2025.
“The project will export energy via the Southern African Power Pool but will also serve domestic clients through wheeling energy under the Modified Single Buyer (MSB) regulations across Namibia. Future phases are already in development, which will expand the project to a combined 125MW of PV solar and 180 MWh of battery energy storage,” he added.
The company invited businesses interested in purchasing energy from the project and potential investors to contact Emesco for future rounds.
“The plant will reduce annual greenhouse gases emitted in the production of utility-supplied power in the region by 331,973tCO2. This investment in Namibia’s energy supply industry will lower energy costs across the region, improving access to energy and opportunities for individuals,” said the NIPDB.
The project is projected to increase skill levels in the region, creating 400 temporary job opportunities during construction, 60 seasonal jobs, and 15 permanent positions during operations.
This development follows the Electricity Control Board (ECB) issuing generation and export licenses to Schonau Solar Energy for its 125 MW solar PV plant in 2022.
Located in Karasburg town, the plant will generate electricity for 25 years and export its power via South Africa into the Southern African Power Pool’s (SAPP) competitive electricity markets.
Emesco’s registration of Schonau Solar Energy as a market participant in SAPP will make it the first independent solar power producer to contribute to the SAPP grid under the ECB’s Modified Single Buyer Framework.
NamPower, Namibia’s national power utility, with Schonau Solar Energy, will coordinate the export and trade of electricity on the SAPP competitive market.
