The first wheeling project implemented under NamPower’s Modified Single Buyer (MSB) framework will use electricity generated through a 10MW solar plant in North Central Namibia.

The N$200 million (around $10.6 million) solar plant is being constructed on Maxwell Farm, North Central Namibia. It will generate approximately 26,360MWh of clean energy per year.

The clean energy generated by the solar plant will be allocated or “wheeled” to the customer. The solar plant will not be connected behind the customer’s meter but at a different location on NamPower’s grid.

Under the previous single-buyer model, electricity output was restricted to being sold only to NamPower.

The solar plant is set to be operational by the end of 2024 and the energy will be injected into NamPower’s brand-new Eldorado substation. It will then be allocated under the MSB framework to B2Gold’s Otjikoto Mine, which is around 300km north of Windhoek.

The MSB framework allows Independent Power Producers (IPPs) to produce and sell electricity directly to regional distributors, large industrial and mining companies, as well as municipalities.

In a broader context, the NamPower MSB framework resembles energy wheeling frameworks, wherein electricity is generated at a specific grid point and distributed to other large consumers via the utility’s network.

Wheeling to achieve a 30% reduction in emissions

This initiative aims to ensure the provision of electricity, foster a competitive environment in the electricity industry, and encourage private-sector investment.

B2Gold’s Otjikoto gold mine will be one of Namibia’s greenest mines, with the aim of offsetting an additional 26,360 tonnes of CO2 annually. The company’s aim is to achieve a 30% reduction in greenhouse gas emissions by 2030 and a net-zero operation at the Otjikoto mine.

B2Gold is the leading gold producer in Namibia, with an estimated gold output of 200,000 ounces in 2023 and a workforce of 976 employees.

SPS, the solar plant developer, is partnering with Fortitude, a property development and project management firm, as well as the Oelofse family, known for their long-time dedication to Namibian wildlife conservation.

The Oelofse family, who owns Maxwell Farm, is also an investor.

“The solar plant’s development marks a milestone in our collective pursuit of greener, more efficient energy solutions,” said Alex Oelofse of Maxwell Farm.

Fortitude will play a role in the engineering, value-engineering and quality control processes during the construction phase of the power plant.