NamPower signs N$1.5 billion, 25-yr deal with Diaz Wind Power (original) (raw)

Staff Reporter

Windhoek-NamPower has signed a 25-year power purchase agreement with Diaz Wind Power, for the off-take of electricity from a 44 MW wind power generation plant. The N$1.5 billion agreement, which was signed on December 13 in Windhoek, will be developed by Diaz Wind Power by 2019. At the signing, Diaz Wind Power was represented by its director, Haddis Tilahun.

Diaz Wind Power will set up the wind power generation plant on a site near Luderitz in the //Karas Region. The town of Luderitz and its surrounding area boasts strong and reliable wind speed, a factor that will enable Diaz Wind Power to provide NamPower with dependable power. The wind plant is expected to deliver an energy output of more than 200 million kilowatt hours per year, which translates to supplying electricity to more than 10,000 households.
The two parties also signed two other agreements on the day, namely the Project Development Connection and Transfer Agreement (PDCTA), which makes provision for the building of the transmission infrastructure that will connect the wind generation plant to the NamPower transmission system, and the Transmission Agreement, which makes provision for the use of the transmission system by Diaz.

The project will include all requisite civil, electrical and mechanical installation works at the site, the construction of the Diaz substation and a 27km transmission line to NamPower’s 132 kV Namib substation, as well as upgrade to NamPower’s Kokerboom and Namib substations.

Speaking at the signing, NamPower’s Managing Director Kahenge Haulofu, hailed the agreement as an important milestone in the expansion of the Namibian power generation sector. Haulofu emphasised NamPower’s commitment to work with Independent Power Producers (IPPs) with viable renewable energy projects to develop new generation power plants, as part of NamPower’s short and medium term initiatives to complement conventional power generation sources and add to the current generation capacity.

Testament to its willingness to work with IPPs, NamPower has also signed a 25-year, 4.5 MW power purchase agreement with Innosun (Omburu), and a 20 MW power purchase agreement with Greenam Energy (both solar). The Innosun project is already providing energy to the grid and the Greenam Energy project is expected to feed into the grid by mid-2018.

Also soon to come on board is a 37 MW Solar Energy plant by Alten Solar Power (Hardap (PTY) Ltd) which was awarded beginning of 2017. This plant will feed into the grid as from July.

Under the REFIT (Renewable Energy Feed In Tariff) programme, NamPower has concluded power purchase agreements with 14 local renewable energy IPPs, initiated by the Electricity Board of Namibia, NamPower and Ministry of Mines and Energy. The programme will inject up to 70 MW of renewable energy into the grid. Of the 14 IPPs, nine have already started to feed into the system, while the remaining five are expected to start operation by mid-year.