NamPower signed Power Purchase (PPA) and Transmission Connection (TCA) agreements with Cerim Lüderitz Energy for the development of the 50MW Lüderitz Wind Power Plant on a Build-Own-Operate Basis. 

The agreement includes associated transmission connection infrastructure required to connect the power plant to Namibia’s electricity grid. The power plant, which will cost approximately N$1.40 billion, will be located about 16km south of Lüderitz Town. 

According to the project agreements, Cerim will be responsible for the
complete development of the power plant, which include the financing, construction, operation and
 maintenance thereof, while NamPower will be the exclusive off taker of electricity generated by the plant for the 25 years PPA term. 

NamPower and Cerim Lüderitz Energy envisage that the
development of the Wind Park will be completed within 27 months from
 the PPA signature date, thus commercial operation is expected by July 2025. 

The 50MW Lüderitz Wind IPP Power Project forms part of NamPower’s planned generation projects under its Integrated Strategy and Business Plan (ISBP) for the period 2020 – 2025. The ISBP outlines the company’s strategic focus, which include the prioritisation of local renewable resources over the
five years (2020-2025) in line with the mines and energy ministry’s determination on the development of generation capacities. 

The 50MW Lüderitz Wind IPP Power Project will contribute towards the fulfilment of national policy goals such as the Namibia Integrated Resource Plan (NIRP) for the electricity sector, National Energy Policy, Renewable Energy Policy as well as the Fifth National Development Plan (NDP5). 

Furthermore, the project will contribute towards local economic employment creation as semi-skilled and unskilled labour which will be sourced from the //Kharas
region. 

During the signing, NamPower’s managing director Kahenge Haulofu stated that “considering the power supply situation in the Southern African Power Pool, the commissioning of this project come July 2025 will displace 50MW of imports, which is a step in the right direction…This project will contribute significantly to our
supply portfolio when combined with other generation projects that
forms part of the ISBP”. 

Speaking on behalf of the Cedrim Lüderitz Energy, Josephine Nghimtina noted that “it was a great honour to partner with NamPower to contribute towards the stability of energy supply in the country”. 

She also commended NamPower for the equal opportunity given to previously disadvantaged
Namibians to participate in the
energy sector. 

She stated that “such a privilege comes with great responsibility” and said Cerim Luderitz Energy will do everything in their power to ensure the project is completed within the applicable scope and time. 

NamPower invited bids via an open international bidding process for the development of a 50 MW Lüderitz Wind IPP Power Plant on a build-own-operate on 4 March 2022. A total of five bids were received at the bid closing date on 29 July 2022. 

The joint venture between China Energy International Group, Riminii Investments (Pty) Ltd, which was later incorporated into Cerim Lüderitz Energy, emerged as the successful bidder from an openly advertised and competitive bidding process and an extensive evaluation phase with an offered base electricity tariff of N$0.8785 per kilowatt-hour and a Fixed Annual Escalation Rate of 0.5%. 

Cerim is a Special Purpose Vehicle (SPV) legally registered under Namibia’s laws and the regulations, consisting of Riminii Investments (Pty) Ltd, a local entity owned by previously disadvantaged Namibians and China Energy International Group (Energy China) which is the lead partner in the SPV. 

China Energy International
Group Co. Ltd is a multinational company with experience, providing total solutions and services for
global energy and power, infrastructure and green low-carbon development. 

Energy China has 256 branches abroad, covering business in 147 countries and regions, with 416 projects under construction and over 100 000 international employees, making it a leading company in terms of
Chinese.