TO DATE, three of the 14 independent power producers have been commissioned, NamPower’s corporate communications and marketing manager Tangeni Kambangula told The Namibian on Monday.
NamPower has concluded power purchase agreements (PPAs) with 14 local renewable energy independent power producers (IPPs) under the interim renewable energy feed-in tariff (Refit) programme, each generating 5 MW.
“Three of the 14 IPPs have already been commissioned, namely HopSol Photo-voltaic (PV) at Grootfontein, Osona (PV) at Okahandja and MetDecci (PV) at Karibib,” she noted.
The remaining IPPs are expected to come online by the end of 2017. The Refit programme will inject up to 70 MW of renewable energy into the grid.
Kambangula said in addition, NamPower has also concluded a PPA with Greenam Energy to generate 20 MW of solar energy, which is expected to come online mid-2018.
Furthermore, another PPA with Diaz Wind to generate 44 MW of wind energy has been concluded in 2016. In addition, a 37 MW solar energy tender has been awarded at the beginning of 2017.
“The Refit programme, and the agreements with the IPPs in particular, are aimed at fulfilling the requirements of the Energy White Paper regarding renewable energy targets, and also to meet the additional capacity targets as stipulated in the Harambee Prosperity Plan,” she explained.
Speaking at the commissioning of the Karibib 5 megawatt solar PV power plant last Friday, deputy mines and energy minister Kornelia Shilunga said this was an important milestone for Namibia’s electricity supply industry and the country.
“Our journey to attract independent power producers has been long, and I assure you it has not always been easy. The Refit programme is an important part of our strategy, which seeks to strengthen our local capacity to supply electricity, and at the same time create opportunities for investors, power plant operators, equipment suppliers and installers, and many others involved in making it all happen,” said Shilunga.
Electricity Control Board (ECB) CEO Foibe Namene said last Friday that the Interim Refit programme fits perfectly into the national integrated resource plan (NIRP), which was recently approved by Cabinet, in which renewable energy is an important component.
She said the ECB used its tariff methodology to determine the Refit tariff levels, to ensure the sustainability of the power project, as well as the affordability of the electricity to be provided.
“The interim Refit programme only reserved 70 MW due to technical and financial reasons; which means only 14 IPPs could be allowed into the programme,” said Namene.
She added that the ECB came up with requirements for these IPPs to meet in order for them to be part of the programme.
These requirements comprise, amongst others, a letter from a reputable lender confirming that it is willing to extend financing on the terms and conditions of the power purchase agreement (PPA) and the transmission connection agreement, as well as a shareholding certificate indicating a minimum previously disadvantaged Namibians’ share of 30%.
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