The immediate aspiration in terms of photovoltaic power could provide a minimum net saving of 5% to 10% to the country’s annual generation revenue, Marco Triebner, Standard Bank’s investment banker said yesterday.
He said photovoltaic power will cut on expensive electricity imports and a pure financial benefit with the potential to translate into even higher macro-economic benefits given the increased affordability of power.
NamPower expects to spend a minimum equivalent of N$2 billion to N$3 billion, Triebner said.
“It is for these reasons alone that the government of Namibia is presented with the opportunity to provide support in the form of enablers in achieving its objective of unlocking this strategic resource in the most effective manner and therefore providing for a giant leap into the direction of at least one of government’s priorities, namely poverty alleviation through affordability, job creation and economic multipliers,” he said.
Namibia’s Electricity Supply Industry (ESI) requires the development of a base load power station to absorb the potential unpredictability of renewable supply to offer the Namibian consumer peace of mind in terms of security and reliability of supply.
Triebner said Standard Bank embraces Namibia’s recent drive toward the development of renewables and has already proven its appetite for the sector by being the first commercial bank to extend financing to Solar PV projects in our country.
“Namibia, as the gem of Africa, can ill-afford the same mistakes made by the region in terms of crisis management in the power sector, due to its already small, by comparison, and fairly fragile economy,” he said.
Namibia, like the rest of the region, is facing supply constraints. Triebner said generation from renewables in South Africa has redefined their meaning to the sector.
“Initially viewed as costly generation, as previously mentioned, when compared to conventional generation, renewables in South Africa have become an invaluable macroeconomic instrument, with operational savings in excess of N$6-billion over 24 months,” said Triebner.