25 Jul 2018 07:50am
WINDHOEK, 25 JUL (NAMPA) The Development Bank of Namibia (DBN) has encouraged the setting up of enterprises in solar energy technologies as a cheaper alternative to conventional electricity.
In a media statement availed to Nampa on Tuesday, DBNs Senior Manager for Marketing and Corporate Communications, Jerome Mutumba said the bank is prepared to fund projects in this area, provided that they are cost efficient.
He said subject to the value of savings on electricity, as well as the financial sustainability of the enterprise, DBN has the ability to provide finance for solar power to all sizes of enterprises, ranging from SMEs to heavy industrial users such as mines and manufacturers.
Mutumba noted that a significant number of commercial properties and private entities, including retail facilities, are increasing their use of solar power.
Enterprise finance typically measures profitability on the basis of revenues generated from business activities. However, DBN considers cost efficiency as an important contributor to the bottom line, he said.
Solar power, Mutumba said, is a resource which is beginning to make an impact in Namibia, however, it is still nascent.
He said as the Southern African sub-continent industrialises, there will be a greater need for electricity and although the gas generation is being developed, it is not yet clear if the combined capacity of institutional generators of various forms of electricity will match demand.
Mutumba highlighted the banks finance for private entity in solar energy technologies, SunEQ, as a good example of how privately-owned electricity generation supports industry.
The 5MW solar plant was established by a consortium of private companies to provide power to Ohorongo Cement, a major user of electricity.