NamPower signs PPA with Greenam

13 Jul 2016 18:50pm
WINDHOEK, 13 JUL (NAMPA) – The Namibia Power Corporation (NamPower) and Greenam Electricity (Pty) Limited on Wednesday signed a power purchase agreement (PPA) for the latter to supply 20 megawatts (MW) to the national grid.
The agreement is valid for 25 years and is worth between N.dollars 505 million and N.dollars 649 million.
NamPower acting Managing Director Simson Haulofu and Greenam Electricity (Pty) Limited Chief Executive Officer Asaf Nadel signed the official papers.
The agreement makes provision for Greenam to provide NamPower with electricity from two solar photovoltaic power plants that will be constructed near Keetmanshoop in the //Kharas Region and near Mariental in the Hardap Region.
Each plant will provide 10 MW.
“We are satisfied that the negotiation between the two organisations culminated in the signing of this agreement. We know that the Southern African Development Community (SADC) and Namibia in particular is facing a shortage of power supply and is in dire need of new power generation plants to meet the ever-increasing demand for electricity,” said Haulofu during the signing ceremony.
Currently, Namibia imports about 80 per cent of its electricity from Zambia, South Africa and Zimbabwe.
He noted that Greenam was the first independent power producer (IPP) that NamPower engaged in PPA discussions for the past five years and became the second IPP to sign a PPA with NamPower since the adoption of the Short Term Critical Supply Project (STCSP) in 2011. InnoSun Energy Holdings signed in December 2013.
The acting MD explained that the Renewable Energy Feed-in Tariff (REFIT) programme was designed to fast-tract investment in renewable energy technologies by offering long-term contracts to renewable energy IPPs, typically based on the cost to generation of each technology.
Greenam and Innosun are part of 14 IPPs expected to generate 70 MW of energy.
Thirteen IPPs invested in solar photovoltaic projects, while one will generate electricity using wind power.
“I would like to re-iterate that NamPower is committed and open to working with IPPs that have viable renewable energy projects in order to complement conventional power generation sources with the aim to ensure that the goals and objectives of Vision 2030 are realised,” Haulofu reiterated.
Speaking at the same occasion, Nadel said Greenam, a wholly-owned Namibian company, said they are proud to have reached an agreement after long negotiations.
“We are going to build a foundation for other IPPs to come in future,” he said.
Nadel said the company will start with the construction of the projects at the two sites near Keetmanshoop and Mariental soon and will start generating electricity with the next 18 months.
Meanwhile, Hana-Muriel Setteboun, the senior executive for business development and finance for Family Kurz Group under which Greenam falls, said the two projects will provide training and employ more women in order to empower women in the country.
“As a woman, I am hoping these projects will train women and employ them as engineers and technicians in the realisation of the agreement,” she said.
FKG focuses on the development of power plants for the generation of renewable energy through water, the sun and wind.