ANIREP Solar, a subsidiary of Alpha Namibia Industries Renewable Power Limited (ANIREP), and the Central and Northern Electricity Distributor (CENORED) have agreed to extend their existing power purchase agreement of 5-megawatt (MW) AC capacity to between 8MW and 11MW.
The Power Purchase Agreement (PPA) and Distribution Connection Agreement (DCA) between the two companies were initially signed in July 2015.
As part of the conditions of the amended agreement, an additional capacity of 3MW up to 6MW will be added to the existing Power Plant, of which a 3 MW charge Battery Storage System is to be installed at the new plant, with up to 3MW to be sold to CENORED in the day, alongside the original 5MW previously supplied.
The agreement will also grant ANIREP Solar an additional 12 months to the tenure of the PPA, to allow for production loss during construction of the new capacity to reduce CENORED’s peak demand.
“I’m pleased that ANIREP in line with its project pipeline has reached yet another milestone, which is the first project of its kind in Namibia. This agreement also stands as a testimony of a great partnership with CENORED, which afforded ANIREP’s maiden BESS project thereby providing capacity and momentum for ANIREP on its journey to contribute to the development and supply of at least 30% of the renewable energy in the country,” ANIREP Managing Director Iyaloo Nangolo said.
The project will be among other projects that the Namibian Stock Exchange listed company will fund with proceeds from a planned N$570 million rights issue slated for the last quarter of the year, towards the end of the year, or the beginning of the first quarter next year.
In addition to the CENORED agreement, ANIREP was recently awarded to construct and operate an 18.5MW solar plant for Dundee Precious Metals Tsumeb under the MSB model, in addition to the 20MW solar PV Khan IPP which broke ground in March 2022, plus the inauguration four months ago of the 20MW Omburu EPC and Operation & Maintenance project with NamPower.
On completion of the projects, ANIREP will be supplying over 50MW Solar PV as an Independent Power Producer.
Out of 170MW PV power plants in Namibia, ANIREP’s subsidiary HopSol Africa has been involved in the construction of 120MW.