- Solar Century Africa Limited (“Solarcentury Africa”) and SolNam Energy Pty Limited (“SolNam”) are pleased to announce they have received their updated generation licence from the Electricity Control Board (“ECB”) to build the SolNam 60 MW solar project in southern Namibia, near Keetmanshoop.
- The two companies previously signed a Joint Development Agreement, in early 2023 to co-develop the project.
- The project has land secured near to the Kokerboom sub-station, obtained the required environmental clearance certificate from MEFT in 2022 and is targeting a financial close in 2024.
Both Solarcentury Africa and SolNam aim to develop various renewable energy assets in Southern Africa to provide more power to a region that is currently experiencing a power deficit. The project will help Namibia in reaching its climate change targets, and transition away from fossil fuels, which it has committed to under the recent COP28 framework in Dubai.
This project will be Solarcentury Africa’s second merchant project in Namibia and will be primarily focused on supplying Namibian customers. A solar “merchant” project is a project that relies on selling electricity via spot and forward electricity markets rather than long-term power purchase agreements (PPAs).
It follows the 20 MWp Gerus solar PV plant that is due to enter construction in the coming months, a strategy made possible by Solarcentury Africa’s membership of the Southern African Power Pool (“SAPP”) as a market participant, announced in November 2023.
The SAPP membership and the continued development of the SolNam project are important steps in the growth of Solarcentury Africa’s power trading business in the SADC region. Solarcentury Africa’s objective of becoming a leading power trader in Southern Africa will be achieved by combining its considerable experience as a developer of solar PV and storage plants in Africa with the energy trading expertise and ability to deploy significant capital of its parent company group, BB Energy. Solarcentury Africa believes that the merchant route opens the opportunity to deliver significant new renewable power generation capacity quickly and cost effectively. This will contribute to the energy transition in the region and help meet the region’s growing power needs.
Author: Bryan Groenendaal