Erongo RED signs Arandis solar power agreement

The barrier was once more shifted for the Erongo Region’s bulk electricity supply industry yesterday, with the signing of a Power Purchase Agreement (PPA) between regional electricity distributor Erongo RED and OLC Arandis Solar Energy for the supply of electricity for a period of the next 25 years. The supply agreement will enable Erongo RED to save up to N$127 million in the cost of its bulk electricity purchases over this period.

The signing of the PPA is the first step of the project, which will now commence into the construction phase of a grid-tied Solar Photovoltaic Power Plant with the power generation capacity of 3 mega-watts at Arandis. OLC Arandis Solar Energy will also operate the plant.
This is the second PPA to be signed in the Erongo Region. The first similar PPA was signed between Nampower and the Omburu Solar Plant at Omaruru earlier.
“The Arandis 3MW Solar project will not only ease Erongo RED’s bulk electricity bill from NamPower, but it will also allow electricity consumers to have access to clean energy at a reasonable price. Personally, I feel that signing this agreement is a step in the right direction and it came at the right time as we are shifting our focus towards renewable energy as we diversify our energy mix such as wind, solar and biomass,” commented CEO of Erongo Red, Robert Kahimise at the signing ceremony yesterday. The cost of the plant is at a estimate of N$80 million, which will be constructed on a 12,5 hectare property leased from Arandis Town Council. The groundbreaking of the construction is scheduled for November. The aim of the project is to have the solar plant operational by July 2017.