The Joint Venture between China Energy International Group – Riminii Investments (Pty) Ltd, which was later incorporated into CERIM Lüderitz Energy (PTY) LTD emerged as the successful bidder from a 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%.
This then led to NamPower signing a Power Purchase (PPA) and Transmission Connection (TCA) agreements with CERIM Lüderitz Energy (PTY) LTD for the development of the 50MW Lüderitz Wind Power Plant on a Build-Own-Operate Basis, and the associated transmission connection infrastructures required to connect the power plant to the Namibia 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 from the power plant for the 25 years PPA term.
NamPower and CERIM Lüderitz Energy expect the development of the CERIM Luderitz Wind Park will be completed within a period of 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 Ministry of Mines and Energy (MME)’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).
The 50MW Lüderitz Wind IPP Power Project will contribute towards local economic employment creation as semi-skilled and unskilled labour which will be sourced from the //Kharas Region.
The commissioning of the project will displace 50MW of imports. NamPower invited bids via an open international bidding process for the development of a 50 MW Lüderitz Wind IPP Power Plant at Lüderitz on a build-own-operate in March 2022. A total of five bids were received.
CERIM is a Special Purpose Vehicle (SPV) legally registered under the laws and the regulations of Namibia, consisting of Riminii Investments (Pty) Ltd, which is a local entity that is owned by Previously Disadvantaged Namibians (PDNs) and China Energy International Group Co., Ltd. (Energy China) which is the lead partner in the SPV. China Energy International Group Co., Ltd is a multinational company with extensive 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.