Alpha Namibia Industries Renewable Power Limited (ANIREP) on Thursday signed a Power Purchase Agreement (PPA) with Dundee Precious Metal Tsumeb to generate 25.719MWdc through renewable solar pv power.
Under the deal, ANIREP will supply a minimal 18.5MW to Dundee Precious Metals Tsumeb as the off taker from the N$300 million Solar PV power project located at Keetmanshoop close to the Kokerboom, which will have a 25.719MWdc capacity.
The signing of the deal comes after ANIREP submitted a successful bid and was selected by Dundee, pursuant to the Modified Single Buyer model (MSB) framework.
Under the MSB framework, Dundee, as a Contestable Customer, is allowed, amongst others, to purchase wholesale electricity from independent power producers to the quantity of 30% of its total annual electricity consumption, as defined in the Contestable Quantity as approved by the Electricity Control Board (ECB).
“The International Finance Corporation (IFC) is working with us to determine the viability of developing a 10-20 MW independent solar power plant with a view to pilot the new MSB in Namibia. We also looking at local banks for help fund the project,” ANIREP Managing Director Iyaloo Nangolo told The Brief.
“I’m pleased to have signed the PPA with Dundee, as our first project to provide power to the mining sector under the MSB framework. Whilst shorter term PPAs present challenges, we recognise the need for innovative structures and funding models to cater for the requirements of the private sector; in this regard, we look forward to continuing our pioneering work with the IFC to supply energy to a portfolio of customers under the aggregation model in Namibia and potential scalability across the SADC region.”
On completion of this project, ANIREP will be supplying over 50 MW Solar PV as an Independent Power Producer and is well on its way to achieve its target to contribute to the development and supply of at least 30% of the renewable energy in the country.
“The rights offer we are about to launch provides further capacity and momentum for ANIREP on its journey grow the generation of renewable energy in the country,” he said.
ANIREP is October last year announced plans to raise N$570 million to acquire and develop new renewable energy projects in the country.
ANIREP’s subsidiary HopSol Africa has been involved in the construction of a significant portion of existing PV power plants in Namibia.
“The unique vertically integrated structure of being an IPP which also owns the leading EPC and O&M company in Namibia in renewable energy development, has positioned ANIREP to be at the forefront in providing affordable renewable power in the country, “Nangolo said.
