NamPower, Diaz Wind Power sign power agreement
13 Dec 2017 20:50pm
WINDHOEK, 13 DEC (NAMPA) The Namibia Power Corporation (NamPower) and Diaz Wind Power on Wednesday signed a power purchase agreement to develop a 44 megawatt (MW) wind power generation plant.
The generation plant will be developed close to Lüderitz to supply electricity for close to 1000 households.
The agreement follows negotiations between the two parties since 2008 which were concluded in 2016.
Director of Diaz Wind Power, Haddis Tilahun said during the signing of the agreement that a total of N.dollars 450 million was already availed for the N.dollars 1.5 billion investment.
We will establish a utility scale power generation plant that will create an opportunity for other investors confidence to invest the Namibian economy and in partnerships with NamPower, Tilahun stated.
NamPower's Managing Director Simson Haulofu stated that Namibia was faced with a power supply shortage and in need of new power generation plants to meet the increasing demand for electricity.
There are delays in the execution of mega projects such as Kudu and Baynes as these projects are complex and require government guarantees, he said.
He further added that NamPower would continue to investigate various options in respect of the development of new generation power plants as part of its short and medium term initiatives to add to the current generation capacity.
These options would include working on a number of small generation projects which include Independent Power Producers (IPPs) to reduce the reliance on imports.
The utility would also continue to engage IPPs to produce electricity from renewable energy sources such as solar PV, biomass and wind.
Imports from the region would also continue to play a vital role as part of the power utilitys supply base to continue ensuring security of power supply.