NamPower continues renegotiating power agreements

13 Apr 2015 18:50pm
WINDHOEK, 13 APR (NAMPA) – Namibia’s national power utility will continue to renegotiate existing and new Power Purchase Agreements (PPAs) with neighbouring power utilities, said NamPower Managing Director, Paulinus Shilamba.
Shilamba said this here on Monday while updating the media on Namibia’s current power supply situation and progress made on projects and initiatives that ensure the security of the supply in the country.
He said a new 80-megawatt (MW) PPA with the Zimbabwe Power Company (ZPC) became effective on 01 April 2015.
This agreement was signed on 16 October 2014, to supply up to 350 gigawatt hours (GWh) in a calendar year and is intended to supplement the seasonality of the Ruacana power station.
Shilamba said the terms of this agreement is 15 years with the option to reduce capacity to 50MW after 10 years from the date of when it came into operation.
The NamPower MD added that negotiations with the Mozambican national electricity supply company, Electricidade de Moçambique (EDM) for 80MW to 100MW mid-merit power has been concluded and the new PPA should be signed within the next few months.
Mid-merit power is adjusted as demand for electricity fluctuates throughout the day.
Shilamba noted that the existing 90MW PPA with Aggreko Mozambique will expire in August 2015 and is currently under re-negotiation.
Aggreko is the world's largest temporary power generation company and a major supplier of temperature control equipment.
He further noted that the existing supplementary agreement with the South African national power utility, Eskom, for up to 200MW, which expired in March 2015, is also under re-negotiation.
“We are extremely pleased with the recent news received from Omburu Sun Energy that the 4.5MW solar photovoltaic (PV) power plant at Omburu near Omaruru in the Erongo Region, will be commissioned before the middle of this year,” he said.
Shilamba stressed that the PPA negotiations with other Independent Power Producers such as the Diaz Wind Project (formerly known as Aeolus Power Generation Namibia), and Arandis Power have been put on hold. This is due to the fact that the implementation agreements, which would outline the government guarantees to be provided, have not been concluded and will most probably not be concluded at all.