SunEQ, a solar asset development platform based in Germany, signed a Power Purchase Agreement (PPA) for a 5-MW solar PV project with Ohorongo Cement in Namibia.
The PPA is the first major milestone for the sister company of independent German consultancy Suntrace, on its way towards becoming an independent power producer. The groundbreaking ceremony for the 5-MW PV plant took place next to the cement factory on June 5, and was attended by the Namibian Environmental Commissioner Theofilus Nghitila.
Operations at the solar plant are expected to commence by the end of 2017, the PV plant will be the first utility scale project in Namibia to generate solar power for industrial usage. The power purchase agreement has a 15-year term.
“The project will significantly reduce Ohorongo Cement´s electricity expenses and running costs, and also help Namibia to increase the renewable energy portion of the country’s energy mix enormously”, says Matthias Schwara, managing director of SunEQ.
The Namibian government has committed itself to increasing the share of renewable energy in electricity production to 70% by 2030. “A captive power plant relates to the sale of power from a private generator. This business concept is likely to become gradually more popular as the economy’s demand for secure power supply increases, and the costs of solar generated electricity become more competitive,” adds Schwara.