- Namibia
- Renewable Energy
- Solar Power Plants
- Project Finance
- US$ 30.0000.000
- Debt/Equity funding
Summary
The applicable promoter is seeking USD$30Million from an investment partner for Phase One 20MWDC/40MWAC in solar power plants in rural Southern Namibia, Africa. Phase One, based on current peak power load, will serve as a model for future regional development powered by renewable energy.
The desired start date for Phase One is early Summer 2017 with completion in late Spring 2018. Six locations are prepared to finalize predevelopment and begin plant development within 120 days. An additional nine locations are either pending signature or in discussions and can begin plant development with 150 days. Based on the completion timeframe, an initial investment of USD$2Million is required for finalization of the pre-development phase and solar training launch.
Goal
The promoter desires to support the economic growth and development within the Republic of Namibia through the introduction of a renewable energy portfolio within the Southern Regions. The entrepreneurs realized that the introduction of sustainable energy and continuous education within the Region can support true local and national growth through the setting up of multiple energy development projects and storage shared across multiple villages, towns and municipalities.
The generation, supply and distribution of the power shall support current needs throughout the southern part of Namibia, neighbouring towns, the region and future needs of the national grid.
Namibia Power Overview
Namibia currently has a peak power need of approximately 600MW annually of which it purchases approximately 125MW from Mozambique. Namibia has recently entered into another five-year extension Contract for the supply of 200 MW, which was entered into between the promoter and South Africa’s national power producer, ESKOM. However, the current political and economic instability in South Africa, coupled with its own economic growth and need for electricity, causes great concern for Namibia which might become a secondary priority for the supply of power. The remaining power is produced through NamPower projects and local town initiatives.
About producing Power in the Southern district of Namibia
It is a known fact that the Southern part of Namibia has some of the highest radiation levels in the world and an initial pilot project by the promoter was earmarked in 2016. The recent threats from Nampower, in the local media, to discontinue power supply to various Villages and Towns in the south resulted that multiple municipalities, towns and villages entering into their own Power Purchase Agreements in an effort to generate power for its current local customers and resell any unused and/or stored solar power back to the national grid. This shall also allow towns to cancel its current Power Purchase Agreement at the end of June 2017 from the South African company, Southern Electric Company of South Africa (SELCO). The current plan of the towns is to extend the SELCO contracts until it can find another viable power supply option.
Project Economics
The promoter has secured six power purchase and land lease agreements for 25 years at NAD$1.90/USD$0.14 and respective hectares of land for immediate solar farm development, potential power storage and a solar training program. Upon securing of an investment partner, additional power purchase and land lease agreements will be confirmed. Full commissioning of Phase One – 20MWDC/40MWAC (apprx.5MW overage based on current load profiles) with storage will equal approximately USD$5.9Million gross revenue annually minus annual degradation for 25 years or USD$141Million.
The Promoter as a Power Partner
The current project features shall be as follows:
Power Purchase Agreements have been entered into with six towns and or locations (with negotiations being in the process with some other locations) to develop between 1MW – 10MW projects (based on current and projected power load) with potential energy storage in some locations. The projects will be able to supply the local towns and a small portion of the overall power deficit in Namibia. Several villages, towns, and municipalities are open to an immediate relationship with the promoter for solar power through their licenses of which the sizes will depend on current Power load.
Training/Workforce Development
Training is key to the success of the project. The partnership group is launching a solar training initiative that will allow communities to participate in the solar development process led by the local councils. A private internet system will be created to support both in-person and virtual training classes. This includes solar certification programs for college students and highly-skilled individuals as well as education programs in primary and secondary schools. The development partner must also agree to train local supervisors on technologies used in the solar plant.
For more information please contact Kennedy Makimii.
Email : nmakimii@firmfactoryafrica.com
Phone : +254 721743131
The applicable promoter is seeking USD$30Million from an investment partner for Phase One 20MWDC/40MWAC in solar power plants in rural Southern Namibia, Africa. Phase One, based on current peak power load, will serve as a model for future regional development powered by renewable energy.
The desired start date for Phase One is early Summer 2017 with completion in late Spring 2018. Six locations are prepared to finalize predevelopment and begin plant development within 120 days. An additional nine locations are either pending signature or in discussions and can begin plant development with 150 days. Based on the completion timeframe, an initial investment of USD$2Million is required for finalization of the pre-development phase and solar training launch.
Goal
The promoter desires to support the economic growth and development within the Republic of Namibia through the introduction of a renewable energy portfolio within the Southern Regions. The entrepreneurs realized that the introduction of sustainable energy and continuous education within the Region can support true local and national growth through the setting up of multiple energy development projects and storage shared across multiple villages, towns and municipalities.
The generation, supply and distribution of the power shall support current needs throughout the southern part of Namibia, neighbouring towns, the region and future needs of the national grid.
Namibia Power Overview
Namibia currently has a peak power need of approximately 600MW annually of which it purchases approximately 125MW from Mozambique. Namibia has recently entered into another five-year extension Contract for the supply of 200 MW, which was entered into between the promoter and South Africa’s national power producer, ESKOM. However, the current political and economic instability in South Africa, coupled with its own economic growth and need for electricity, causes great concern for Namibia which might become a secondary priority for the supply of power. The remaining power is produced through NamPower projects and local town initiatives.
About producing Power in the Southern district of Namibia
It is a known fact that the Southern part of Namibia has some of the highest radiation levels in the world and an initial pilot project by the promoter was earmarked in 2016. The recent threats from Nampower, in the local media, to discontinue power supply to various Villages and Towns in the south resulted that multiple municipalities, towns and villages entering into their own Power Purchase Agreements in an effort to generate power for its current local customers and resell any unused and/or stored solar power back to the national grid. This shall also allow towns to cancel its current Power Purchase Agreement at the end of June 2017 from the South African company, Southern Electric Company of South Africa (SELCO). The current plan of the towns is to extend the SELCO contracts until it can find another viable power supply option.
Project Economics
The promoter has secured six power purchase and land lease agreements for 25 years at NAD$1.90/USD$0.14 and respective hectares of land for immediate solar farm development, potential power storage and a solar training program. Upon securing of an investment partner, additional power purchase and land lease agreements will be confirmed. Full commissioning of Phase One – 20MWDC/40MWAC (apprx.5MW overage based on current load profiles) with storage will equal approximately USD$5.9Million gross revenue annually minus annual degradation for 25 years or USD$141Million.
The Promoter as a Power Partner
The current project features shall be as follows:
- The multiple hectares of undeveloped land will be made available through a Public Private Partnership (PPP) by the town council for the build the solar farms.
- The projects is also set up in terms of the Build Transfer Own (BTO) basis after 25 years.
- Multiple Solar farm(s) set up at multiple locations.
- The initial buildout will be executed based on current power loads in each location.
- Use of solar storage to support peak load and potential power during night activities.
- Any additional power will be sold back to the national grid. If built simultaneously, the completion of 50 - 100MW in various locations can be completed within one year.
- Workforce development program(s) to empower the local communities and produce skilled workers.
Power Purchase Agreements have been entered into with six towns and or locations (with negotiations being in the process with some other locations) to develop between 1MW – 10MW projects (based on current and projected power load) with potential energy storage in some locations. The projects will be able to supply the local towns and a small portion of the overall power deficit in Namibia. Several villages, towns, and municipalities are open to an immediate relationship with the promoter for solar power through their licenses of which the sizes will depend on current Power load.
Training/Workforce Development
Training is key to the success of the project. The partnership group is launching a solar training initiative that will allow communities to participate in the solar development process led by the local councils. A private internet system will be created to support both in-person and virtual training classes. This includes solar certification programs for college students and highly-skilled individuals as well as education programs in primary and secondary schools. The development partner must also agree to train local supervisors on technologies used in the solar plant.
For more information please contact Kennedy Makimii.
Email : nmakimii@firmfactoryafrica.com
Phone : +254 721743131