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Namibia poised to get 20 MWp solar PV plant after financial close

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Solarcentury Africa Limited (Solarcentury Africa) and its local partner, Sino Energy (Pty) Limited (Sino Energy), are pleased to announce the financial close of a landmark 20 MWp solar PV plant in Namibia.

This pioneering project marks the first fully merchant independent power producer (IPP) in the region, with all renewable energy to be traded on the Southern African Power Pool (SAPP).

Without the need for long-term Power Purchase Agreements (PPAs), the plant will help meet Southern Africa’s growing energy demands and signifies a major step in Solarcentury Africa’s strategy to become a power trader in the region.

Solarcentury Africa will own the project entirely and has fully financed it. Scheduled for commissioning in Q3 2025, the generated power will be traded through Solarcentury Africa’s trading arm, Solarcentury Trading, which is a SAPP member. Sino Energy contributed as the project’s co-developer.

Jason De Carteret, CEO of Solarcentury Africa, commented, “This trading project is a transformative milestone for Namibia and the Southern African region, offering a progressive alternative to traditional energy procurement models.

With a fully merchant structure, Solarcentury Africa will trade directly into the regional grid, eliminating the need for long-term PPAs backed by sovereign guarantees, enabling quicker deployment of renewable power with greater flexibility.

We are grateful to our local partner Sino Energy and the Namibian entities that have supported this project, and we look forward to delivering clean, sustainable power to the region.”

Ferdinand Nghiyolwa of Sino Energy added, “This project reflects Namibia’s commitment to renewable energy and showcases the SAPP market’s viability, paving the way for future merchant solar projects in the region. We are proud to partner with Solarcentury Africa on this innovative energy solution.”

The plant, situated between Otjiwarongo and Outjo in the Otjozondjupa region, will add critical power capacity to Southern Africa, generating 51 GWh annually and offsetting 86,001 tonnes of carbon dioxide emissions.

With an investment of approximately US$20 million, this is among the largest British investments in Namibia. Leading Namibian EPC contractor Alensy Energy Solutions Pty Limited has been selected to construct the plant, creating over 150 local jobs. The plant will connect to the NamPower Gerus substation and the main North-South transmission network.

The project has secured a generation license from Namibia’s Electricity Control Board (ECB), connection agreements from the utility NamPower, and an Environmental Clearance Certificate from Namibia’s Ministry of Environment. It also enjoys support from the Namibia Investment Promotion and Development Board (NIPDB).

While power is primarily intended for sale on SAPP, the plant also has the option to supply electricity to local, contestable customers (such as large mining and industrial operations) under Namibia’s new Modified Single Buyer (MSB) rules, which allow flexibility to meet both regional and local energy needs.

The success of this project lays the groundwork for additional merchant projects across Southern Africa, providing a viable alternative to traditional PPAs with sovereign guarantees. Solarcentury Africa is already advancing its next merchant projects in Zambia, Botswana, and further sites in Namibia.

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