Namibian solar energy developer, Natura Energy, has announced a strategic partnership with Globeleq Africa Limited to jointly develop an 81MW solar energy plant. The solar facility which will be named TeraSun Energy solar plant will be the largest ever solar plant to be built in Namibia to date.
“Natura Energy has been developing the TeraSun Energy project completely independently. The strategic agreement signed with Globeleq represents a major boost for the project with the assured injection of significant capital to assure that all activities required to reach commencement of construction will be completed,” said Ezio Vernetti, Managing Director of Natura Energy.
The TeraSun Energy solar plant will be located in the Erongo region town of Arandis in Namibia, a site which enjoys some of the best solar irradiations in the Southern African country. The plant is expected to generate over 227.700 megawatt-hours per annum; enough to power over 68000 average Namibian homes for a whole year.
The facility will be constructed at an estimated cost of N$1 billion (US$67 million). Construction is scheduled to start in the third quarter of 2022.
Modified Single Buyer (MSB) regulatory framework
The TeraSun Energy solar plant will sell power at a competitive tariff under a 25 year power purchase agreement. The plant will operate under the new Modified Single Buyer (MSB) regulatory framework of the Electricity Control Board. This new regulation allows independent power producers (IPPs) to sell electricity to large power users locally and internationally across the NamPower transmission network.
In the MSB regulatory framework, market players are known as Contestable Customers and Eligible Sellers. Contestable Customers are all the Regional Electricity Distributors (REDs), the City of Windhoek and all NamPower customers that are connected to NamPower’s transmission network. These Contestable Customers will be allowed to purchase electricity from IPPs such as TeraSun Energy via bilateral transactions for up to 30% of their annual energy purchases.
The partnership with Globeleq will bring Globeleq’s immense experience and track record to the TeraSun Energy project. Globeleq’ has experience with projects of such nature across Africa with a growing portfolio of renewable energy projects in several African countries.