- Solarcentury Africa and their local partners, Sino Energy, are pleased to announce that they have reached financial close on a groundbreaking 20 MWp solar PV plant, located in Namibia.
The project will be the first fully merchant independent power producer trading all of its renewable energy on the Southern African Power Pool (SAPP). This plant will help meet the region’s growing power needs, without demanding long term Power Purchase Agreements and marks an exciting new chapter in Solarcentury Africa’s plan to become a power trader in Southern Africa.
The project will be wholly owned by Solarcentury Africa and is being fully funded by the company. The plant is scheduled for commissioning in Q3 2025 and the power generated will be sold by Solarcentury Africa’s trading arm Solarcentury Trading, a member of the SAPP. Sino Energy acted as co-developer on the project.
The plant will add much-needed generation capacity to the Southern African region generating 51 GWh and offsetting 86001 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 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 benefited from an enabling sector environment and has already secured a generation license from Namibia’s Electricity Control Board (ECB), connection agreements from the utility NamPower, and an Environmental Clearance Certificate from Namibia’s Ministry of Environment. It also benefits from the backing of the Namibia Investment Promotion and Development Board (NIPDB).
While the plant expects to sell all its power on SAPP, it will also have the option to sell power within Namibia to contestable customers (such as large mining and industrial operations) under the new Modified Single Buyer (MSB) rules which provide added flexibility to meet both regional and local energy needs.
The success of this project sets the stage for future merchant projects in the region, offering a viable alternative to traditional long-term utility PPAs that require sovereign guarantees. Solarcentury Africa is already in advanced stages of development for its next merchant projects located in Zambia, Botswana and more in Namibia.
Author: Bryan Groenendaal
