Solar power for the Otjozondjupa Region. The Development Bank of Namibia has followed up on the success of the Omburu Solar Park by providing finance for the 4.5 MW photovoltaic power plant near Okahandja.
Renewable energy finance powers Namibian energy sector
Development Bank of Namibia finance for Osona photovoltaic plant
The Development Bank of Namibia (DBN) has announced that it has provided finance for another solar power generating facility, Osona Sun Energy, located near Okahandja. The plant, nearing completion, has a capacity of 4.5 MW.
The plant, which will operate in terms of a power purchase agreement (PPA) with NamPower, was developed by InnoSun. InnoSun, founded and headed by father and son team Grégoire and Thomas Verhaege, also constructed the Omburu photovoltaic park. Osona Sun Energy is owned by a consortium of investors comprised of InnoSun and Black Diamond Investments, a local BEE group that holds a 30 percent share in the company.
DBN Head of Lending, John Mbango, said that InnoSun and Black Diamond Investments have proven to be skilled and trustworthy partners for finance. The Bank, he says, closely considers the track record of all applicants. The fact that the establishment of the Omburu photovoltaic plant proceeded smoothly has given the Bank full confidence in InnoSun’s operational capacity.
Mbango also said that he was pleased that the partners chose DBN as the vehicle for finance.
According to Mbango, the Bank welcomes additional applications from enterprises that have used DBN finance to good effect. This open door policy encourages reinvestment of profits in related or other areas by enterprises that have proven their ability to prosper and contribute to Namibia's economic growth.
Talking about solar energy in Namibia, Mbango said that on the basis of the photovoltaic projects, the Bank has developed a strong body of knowledge on the business model and technology and skills required for a solar park. He added that the Bank will welcome applications from other projects in the same field, as well as other renewables, subject to demand and feasibility of PPAs with NamPower.
Mbango said that privately owned utilities are an emerging trend in provision of services, along with public private partnerships. He concluded that DBN will consider enterprise finance applications of this nature, but that these have to be accompanied by firm commitments from SOEs and / or local authorities acquiring the services of utilities.