Solarcentury Africa Limited has announced that its 20 MWp solar PV plant, located in Namibia has reached financial close. The project will be the first fully merchant independent power producer trading all of its renewable energy on the Southern African Power Pool (SAPP).
Solarcentury is developing the solar power plant in partnership with local Namibian partners, Sino Energy (Pty) Ltd. The power plant once completed will help cover Southern Africa’s growing power needs without requiring a long-term Power Purchase Agreement (PPA).
“This trading project is a significant milestone not only for Namibia, but the entire Southern African region, offering a forward-looking alternative to the traditional energy procurement model,” said Jason De Carteret, CEO of Solarcentury Africa.
“The fully merchant structure means Solarcentury Africa will trade directly into the regional grid and removes the requirement for long-term PPA’s backed by sovereign guarantees, enabling faster implementation of new renewable power plants with greater flexibility,” added De Carteret.
The solar power project will be wholly owned by Solarcentury Africa and is being fully funded by the company. Sino Energy acted as co-developer on the project.
Solarcentury revealed that it expects the solar power plant to be commissioned in Q3 2025. The power generated by the 20 MWp solar PV plant will be sold by Solarcentury Africa’s trading arm Solarcentury Trading, a member of the SAPP. The plant is expected to produce about 51 GWh of electricity annually and offset 8600 tonnes of carbon dioxide.
The solar project, to be situated between Otjiwarongo and Outjo, in the Otjozondjupa region, represents a substantial investment of approximately US$20 million, making it one of the largest British investments in Namibia to date.
Leading Namibian EPC contractor Alensy Energy Solutions Pty Limited has been appointed to build the plant. The solar project is expected to provide more than 150 local jobs during the construction phase.
Solarcentury highlighted that the project has benefited from an enabling sector environment and has already secured a generation license from Namibia’s Electricity Control Board (ECB), connection agreements from the utility NamPower, and an Environmental Clearance Certificate from Namibia’s Ministry of Environment.
Additionally, the project also received backing from the Namibia Investment Promotion and Development Board (NIPDB).
“This project demonstrates Namibia’s commitment to renewable energy, opens the door for future merchant solar projects across the region and proves the viability of the SAPP market. We are proud to have been a close partner of Solarcentury Africa in delivering this innovative energy solution,” Ferdinand Nghiyolwa of Sino Energy concluded.