Solarcentury Africa Limited and its partner Sino Energy (Pty) Limited have reached financial close on a landmark 20-megawatt solar photovoltaic (PV) project in Namibia, creating a strategic shift for renewable energy in Southern Africa.
Set to become the region’s first fully merchant solar plant, this facility will operate independently, selling power directly on the Southern African Power Pool (SAPP) without a traditional long-term Power Purchase Agreement (PPA).
The new model represents Solarcentury Africa’s ambition to expand beyond power generation into trading, with the energy produced by the facility to be managed by its trading arm, Solarcentury Trading.
The plant is scheduled for commissioning by the third quarter of 2025, and is entirely funded by Solarcentury Africa.
Sino Energy co-developed the project, which is expected to address rising power demands while promoting renewable alternatives in a region historically reliant on fossil fuels.
“This project is a major milestone not only for Namibia but for Southern Africa,” said Jason De Carteret, CEO of Solarcentury Africa.
“Our fully merchant model enables us to trade power directly into the regional grid, allowing for a faster and more adaptable approach to renewable energy deployment.”
Located between Otjiwarongo and Outjo in Namibia’s Otjozondjupa region, the plant will generate an estimated 51 gigawatt-hours of electricity per year, reducing approximately 8,600 tonnes of carbon dioxide emissions annually.
With an investment totaling around $20 million, this project is one of the largest British investments in Namibia’s growing energy market.
Namibian contractor Alensy Energy Solutions Pty Limited will lead the construction, creating over 150 local jobs. The facility will connect to the NamPower Gerus substation, linking it to the North-South transmission corridor.
Beyond the immediate environmental and economic impact, the project has also benefited from a favorable regulatory environment.
Namibia’s Electricity Control Board (ECB) has granted the necessary generation license, while national utility NamPower and the Ministry of Environment have approved connection agreements and environmental clearances.
Backing from the Namibia Investment Promotion and Development Board (NIPDB) has further facilitated the project’s progress.
The flexibility of the merchant model allows the plant to trade power on the SAPP while also serving domestic customers, including large mining and industrial users, under Namibia’s new Modified Single Buyer (MSB) rules.
“This development underscores Namibia’s commitment to renewable energy,” noted Ferdinand Nghiyolwa of Sino Energy. “It sets a strong example for future merchant solar projects, showcasing the potential of the SAPP market.”
The project highlights a key moment for energy innovation in the region, offering a new path forward for solar investments in Africa.
Solarcentury Africa is already advancing plans for further merchant solar projects across Zambia, Botswana, and additional sites within Namibia, aiming to establish a scalable and flexible approach to renewable energy that reduces dependency on sovereign-backed PPAs.
The solar project not only reinforces Solarcentury’s growing role in Southern Africa’s energy transition but also strengthens Namibia’s position in the region’s evolving power market, setting a foundation for broader private-sector involvement in renewable energy across Africa.
