Solarcentury Africa Limited, in partnership with Sino Energy (Pty) Limited, have reached financial close on a US$20 million (N$354 million) 20MWp solar photovoltaic (PV) project in Namibia.
The groundbreaking Gerus solar PV plant project will be the first fully merchant independent power producer (IPP) in Southern Africa, trading all its renewable energy on the Southern African Power Pool (SAPP).
Solarcentury Africa CEO, Jason De Carteret, said the project marks a significant shift in regional energy markets by bypassing traditional long-term power purchase agreements (PPAs).
“This trading project offers a forward-looking alternative to the traditional energy procurement model. The fully merchant structure means Solarcentury Africa will trade directly into the regional grid and removes the requirement for long-term PPAs backed by sovereign guarantees, enabling faster implementation of new renewable power plants with greater flexibility,” he said.
Ferdinand Nghiyolwa of Sino Energy said the project will be wholly owned by Solarcentury Africa and is being fully funded by the company.
The plant is scheduled for commissioning in the third quarter of 2025. The power generated will be sold by Solarcentury Africa’s trading arm, Solarcentury Trading, a member of the SAPP. Sino Energy acted as a co-developer on the project.
“This project demonstrates Namibia’s commitment to renewable energy, opens the door for future merchant solar projects across the region, and proves the viability of the SAPP market. We are proud to have been a close partner of Solarcentury Africa in delivering this innovative energy solution,” he said.
The plant will add much-needed generation capacity to the Southern African region, generating 51GWh and offsetting 86,001 tonnes of carbon dioxide emissions annually.
“The project represents a substantial investment of approximately US$20 million, making it one of the largest British investments in Namibia to date. Leading Namibian EPC contractor Alensy Energy Solutions Pty Limited has been appointed to build the plant, providing more than 150 local jobs,” the duo noted.
The plant is situated between Otjiwarongo and Outjo, in the Otjozondjupa region, where it connects into the NamPower Gerus substation and the main North-South transmission network.
The project has secured a generation licence from Namibia’s Electricity Control Board (ECB), connection agreements from NamPower, and an Environmental Clearance Certificate from the Ministry of Environment.
It is also backed by the Namibia Investment Promotion and Development Board (NIPDB).
The plant will sell power on the Southern African Power Pool, but can also supply large industrial customers in Namibia under the Modified Single Buyer (MSB) rules, allowing flexibility for regional and local needs.
This project sets the stage for more merchant solar projects in the region, offering an alternative to traditional long-term agreements.
Solarcentury Africa is developing additional projects in Zambia, Botswana and Namibia.
Solarcentury Africa, part of BB Energy Group, specialises in solar PV and energy storage across Africa.
Sino Energy, a Namibian-owned company, has been active in renewable energy development since 2013.
