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NamPower, Diaz Wind Power deal potential game changer in the power sector

NamPower, Diaz Wind Power deal potential game changer in the power sector

NamPower has signed a 25 year power purchase agreement worth N$1.5 billion with Diaz Wind Power, for the off-take of electricity from a 44 MW wind power generation plant.

Diaz Wind Power will set up the wind power generation plant on a site near Luderitz in the Karas Region. The wind plant is expected to deliver an energy output of more than 200 million kilowatt hours per year, which translates to supplying electricity to more than 10,000 households.

The two parties also signed two other agreements on the day, namely the Project Development Connection and Transfer Agreement (PDCTA), which makes provision for the building of the transmission infrastructure that will connect the wind generation plant to the NamPower transmission system, and the Transmission Agreement which makes provision for the use of the transmission system by Diaz.

The project will include all requisite civil, electrical and mechanical installation works at the site, the construction of the Diaz substation and a 27 km transmission line to NamPower’s 132 kV Namib substation, as well as upgrades to NamPower’s Kokerboom and Namib substations.

Speaking at the signing ceremony in the presence Diaz Wind Power Director, Haddis Tilahun., NamPower’s Managing Director Kahenge Haulofu, hailed the agreement as an important milestone in the expansion of the Namibian power generation sector.

Haulofu emphasised NamPower’s commitment to work with Independent Power Producers (IPPs) with viable renewable energy projects to develop new generation power plants, as part of NamPower’s short and medium term initiatives to complement conventional power generation sources and add to the current generation capacity.

Meanwhile, NamPower has also signed a 25 year 4.5 MW power purchase agreement with Innosun (Omburu) and a 20 MW power purchase agreement with Greennam Energy (both solar).

The Innosun Project is already providing energy to the grid and the Greenam Energy Project is expected to feed into the grid by mid-2018. Also soon to come on board is a 37 MW Solar Energy plant by Alten Solar Power (Hardap (PTY) Ltd) which was awarded beginning of 2017. This plant will feed into the grid as from July 2018.

Furthermore, under the REFIT (Renewable Energy Feed In Tariff) programme, NamPower has concluded power purchase agreements with 14 local renewable energy IPPs under the company’s interim REFIT Programme, initiated by the Electricity Board of Namibia (ECB), NamPower and Ministry of Mines and Energy.

The REFIT programme will inject up to 70 MW of renewable energy into the grid. Of the 14 IPPs, 9 have already started to feed into the system, while the remaining 5 are expected to start operation by mid-2018.


 

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

Following reverse listing, public can now acquire shareholding in Paratus Namibia

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20 February 2020, Windhoek, Namibia: Paratus Namibia Holdings (PNH) was founded as Nimbus Infrastructure Limited (“Nimbus”), Namibia’s first Capital Pool Company listed on the Namibian Stock Exchange (“NSX”).

Although targeting an initial capital raising of N$300 million, Nimbus nonetheless managed to secure funding to the value of N$98 million through its CPC listing. With a mandate to invest in ICT infrastructure in sub-Sahara Africa, it concluded management agreements with financial partner Cirrus and technology partner, Paratus Telecommunications (Pty) Ltd (“Paratus Namibia”).

Paratus Namibia Managing Director, Andrew Hall

Its first investment was placed in Paratus Namibia, a fully licensed communications operator in Namibia under regulation of the Communications Regulatory Authority of Namibia (CRAN). Nimbus has since been able to increase its capital asset base to close to N$500 million over the past two years.

In order to streamline further investment and to avoid duplicating potential ICT projects in the market between Nimbus and Paratus Namibia, it was decided to consolidate the operations.

Publishing various circulars to shareholders, Nimbus took up a 100% shareholding stake in Paratus Namibia in 2019 and proceeded to apply to have its name changed to Paratus Namibia Holdings with a consolidated board structure to ensure streamlined operations between the capital holdings and the operational arm of the business.

This transaction was approved by the Competitions Commission as well as CRAN, following all the relevant regulatory approvals as well as the necessary requirements in terms of corporate governance structures.

Paratus Namibia has evolved as a fully comprehensive communications operator in Namibia and operates as the head office of the Paratus Group in Africa. Paratus has established a pan-African footprint with operations in six African countries, being: Angola, Botswana, Mozambique, Namibia, South Africa and Zambia.

The group has achieved many successes over the years of which more recently includes the building of the Trans-Kalahari Fibre (TKF) project, which connects from the West Africa Cable System (WACS) eastward through Namibia to Botswana and onward to Johannesburg. The TKF also extends northward through Zambia to connect to Dar es Salaam in Tanzania, which made Paratus the first operator to connect the west and east coast of Africa under one Autonomous System Number (ASN).

This means that Paratus is now “exporting” internet capacity to landlocked countries such as Zambia, Botswana, the DRC with more countries to be targeted, and through its extensive African network, Paratus is well-positioned to expand the network even further into emerging ICT territories.

PNH as a fully-listed entity on the NSX, is therefore now the 100% shareholder of Paratus Namibia thereby becoming a public company. PNH is ready to invest in the future of the ICT environment in Namibia. The public is therefore invited and welcome to acquire shares in Paratus Namibia Holdings by speaking to a local stockbroker registered with the NSX. The future is bright, and the opportunities are endless.