Namibia agrees with Chinese firms to build its largest solar power plant for $89 million

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September 10, 2024
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2 min read
solar power plant
  • NamPower, Namibia’s state-owned utility, has signed a contract with two Chinese firms to build a N$1.6 billion ($89 million) solar power plant, the largest in the country. 
  • The Chinese firms, China Jiangxi International Economic and Technical and Zhejiang Chint New Energy Development will design and construct the 100 MW Rosh Pinah plant over 18 months. Commercial operations are expected to commence in the second quarter of 2026.

The plant will contribute to Namibia's energy self-sufficiency, stabilise future electricity tariff increases, support economic growth, and promote environmental sustainability.

This development is crucial as Namibia has relied on power imports from countries such as Zambia, Zimbabwe, and South Africa (Eskom). Its power purchase agreement with Eskom is reportedly set to expire in 2025.

According to a report, Namibia's total electricity demand is estimated at 600 MW yearly and is expected to grow by 5% annually. In contrast, the country’s generation capacity stands at roughly 500 MW. 

The new plant will add 100 MW to Namibia's installed power capacity.

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Notably, 80% of the N$1.4 billion ($78.33 million) project will be funded by the German development bank KfW, while NamPower will provide the remaining funds from its balance sheet.

In another Southern African country, Botswana, a group of Chinese companies led by China Harbour Engineering Co. secured a deal in August 2024 to build a $78.3 million 100 MW solar plant, also scheduled for commissioning in the second quarter of 2026. This will be the country’s second utility-scale renewable energy facility.

Additionally, in May 2024, Ghana entered the contractor selection phase for its first nuclear power plant, set to be built by December 2024. Contractors vying for the project included the China National Nuclear Corporation.

Moreover, South Africa, which operates the only nuclear power plant in Africa, Koeberg, is looking to add 2,500 megawatts (MW) of power. In July 2024, South Africa’s Eskom received permission to run one of two units for another 20 years until July 2044.

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