The Development Bank of Namibia (DBN) has approved funding for the development and construction of a 5,4 MW solar energy plant at the Rosh Pinah zinc and lead mine in the Karas region of southern Namibia.
The construction of the plant to be known as the Rosh Pinah Solar Park (RPSP) is expected to reduce the cost of energy to run the mine, diversify its sources of energy and improve its sustainability. The facility will be owned and managed by two Namibian entities, Otesa Energy Projects, the majority shareholder, and Emesco Energy (Namibia). Otesa Energy Projects will construct the plant and Emesco developed the plant.
In a statement about the solar park, Director and Shareholder, Elmo Kalyamo, said the facility will supply 30% of RPZC’s power requirements over the 15-year duration of the power purchase agreement (PPA). This will reduce RPZC’s emissions of greenhouse gases by 6% annually at a company level. Emissions of CO2 produced by utility supplied power in the //Kharas Region will be reduced by 14,242 tons.
Kalyamo said Rosh Pinah Solar Park greatly appreciates the support of DBN and their responsiveness to the specific financing requirements of the project. He also stated that this majority Namibian-owned project supports the country’s objective of energy independence.
The Rosh Pinah Solar Park is the second renewable energy project financed using DBN’s Climate Adaptation Facility.
Commenting on the financial and developmental aspects, DBN CEO Martin Inkumbi said the Bank is committed to the development of renewable energy generation, and the benefits that it brings to economic activity and socio-economic wellbeing in Namibia.
Mining sustainability benefits
Particular development benefits of the finance include preserving sustainability of the Mining and Quarrying sector by reducing costs to a significant producer, making employment offered by RPZC more sustainable, as well as alleviating pressure on the electricity grid.
Pressure on the grid is driven by growing demand from industry as well as expansion of the grid to reach previously unconnected households. As a result of demand outstripping installed generation capacity, Namibia is a net importer of electricity from South Africa and the Southern African Power Pool (SAPP). In December 2021, the country generated 89,054 Megawatt hours (MWh) but had to import 263,899 MWh.
“By financing renewable energy generated by Independent Power Producers (IPPs), DBN aims to reduce cash flows out of the country, increase the amount of locally generated electricity, reduce future costs associated with developing and maintaining cross-border transmission infrastructure as well as enhancing security of supply which may be complicated by threat of disruption of export operations,” said DBN in a statement.
“The Bank has developed a sound track record in financing IPPs generating renewable energy since developing the original industry financing model for Omburu Photovoltaic Park, as well as Ombepo Wind Farm near Lüderitz,” concluded DBN.
