CERIM Lüderitz Energy and NamPower sign agreements for 50MW wind power plant in Namibia
CERIM Lüderitz Energy – a joint venture between Energy China and Riminii Investments – and the Namibian Power Corporation (NamPower) have finalized a Power Purchase Agreement (PPA) as well as a Transmission Connection Agreement (TCA) for the construction of a 50MW wind power plant outside Lüderitz.
The plant will be developed on a build-own-operate basis at cost of N$1.4 billion.
NamPower has entered into a 25-year PPA term and will be the facility’s sole electricity off taker.
The plant is expected to be fully operational by 2025 and will significantly reduce energy imports from the Southern African Power Pool (SAPP).
Namibia presently imports between 60-70% of its electricity from the SAPP, and intends to replace that supply with domestic sources as part NamPower’s Integrated Strategy and Business Plan (ISBP) – a five-year strategic plan that prioritizes renewable energy developments.
The Lüderitz power plant is seen as a critical first step towards establishing Namibia’s energy independence.
“The commissioning of this project, come July 2025, will displace 50 MW of imports which is a step in the right direction… This project will contribute significantly to our supply portfolio when combined with other generation projects that form part of the ISBP,” said NamPower Managing Director Kahenge Haulofu.
The announcement follows H.E. President Hage Geingob’s visit to Lüderitz last week, as part a series of stakeholder engagements in promotion of green hydrogen development.
CERIM’s wind facility will be among several renewables projects establishing themselves outside Lüderitz, which are together transforming the region into Namibia’s first true green energy hub.