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NamPower signs Power Purchase Agreement with InnoSun Energy Holding

1/31/2014

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In its continued efforts to ensure security of supply, NamPower signed a Power Purchase Agreement (PPA) with InnoSun Energy Holding, a local Independent Power Producer (IPP), on 13 December 2013 in Windhoek. 
The new Omburu Solar PV Park to be constructed by InnoSun Energy Holding will provide 4.5 MW power to Namibia from the end of 2014. The plant will be constructed at Omburu, near Omaruru.
The signing of this agreement marks an important milestone in the development of the Namibian power sector. The Managing Director of NamPower, Paulinus Shilamba described the PPA as historic to NamPower as it is the first ever PPA that the utility is signing with a local Independent Power Producer. Shilamba said “the agreement is also important to Namibia as it forms part of the short-term initiatives under the Short Term Critical Supply programme of NamPower, aimed at ensuring security of power supply for the country”. 
Such PPA’s are important given the fact that the country will continue to rely on various power supply options for the next four to five years, while NamPower continues to work on its own generation projects. 
It is a well known fact that the SADC region is facing a shortage of power, a situation that will continue to prevail for the next three to four years. For Namibia, the power supply deficit and associated challenges will continue to prevail until the commissioning of a new base load power station by 2017/18. 
As a result, NamPower will continue to appeal to its customers and the public at large to reduce their electricity usage to help manage the current power supply situation, while NamPower continues to pursue various power supply options.
With due consideration of the credibility and good standing of both InnoSun Energy Holding and NamPower in their respective areas of operation, NamPower is confident that the agreement will be beneficial to both companies and by extension our electricity customers.
InnoSun Energy Holding is a sister company of InnoVent from France. InnoVent, created in 2001, is involved in the 
development, financing, construction, operation and maintenance of wind and solar farms in France, South Africa 
and Namibia. The Chief Executive Officer of InnoVent/InnoSun, Gregoire Verhaeghe at the signing ceremony pointed out that the project will offer employment opportunities during the construction phase, source some components that will be needed for the plant and are locally available and make use of local companies for the construction, operation and maintenance of the plant. No capital expenditure or investment is required from NamPower as part of this agreement.

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