Namibia to Launch its First Wind Energy Park
Namibia’s leading environmental impact research-company Enviro Dynamics reports that the project is on track. This news came following a public meeting between the project leaders and the local community, which was held on the 15th of September 2011.
Enviro Dynamics has confirmed that the project will consist of between 18 and 22 wind turbines. The total area is to cover 16 sq. km. on the historical peninsula of Diaz point. The generating capacity is set to reach 44 MW, and the turbines will stretch as high as 132 metres above the ground. A second phase is also planned, which will increase capacity with an additional 90 MW.
The project is being headed by Namibian United Africa Group, Japanese Sojitz Corporation and South Korean Korea Midland Power Corporation. The three companies signed a memorandum in Windhoek in 2010, establishing the basic framework of the partnership. The project is estimated to cost N$1 billion (US$150 million).
The Diaz point is historically known due to the stone cross, which was erected here by the Portuguese explorer, Bartolomeo Diaz, in the 15th century. The adjacent harbour town of Lüderitz was first established by German colonials, and is situated on the south-western coast of Namibia.
At present, Namibia is reliant on import, in particular from South Africa, to cover its growing energy needs. Almost 50 percent of energy requirements are imported. The only available renewable energy source is the Ruacana hydroelectric plant. The remaining local sources are from non-renewables: coal and diesel.
A pilot project for wind energy was launched in 2005 at a different site in Namibia, in Walvis Bay. At the time, it constituted the first renewable energy initiative based on wind generation by a local authority in Namibia and in southern Africa as a whole.
Investment in Africa
It is the first time that a Japanese firm has participated in an independent power project in sub-Saharan Africa. According to a statement from Sojitz Corporation, it plans “to make use of United Africa Group’s know-how and networks to enter new business fields, including electric power generation and infrastructure development.” Sojitz says it will offer both commercial expertise and project coordination.
Korea Midland Power Corporation is a full subsidiary of South Korea’s national energy utility, Korea Electric Power Corporation. It is a global power leader and provides expertise on technical issues.
United Africa Group is one of Sub-Saharan Africa’s fastest growing companies. In addition to the wind energy project, it is a major partner in the Areva desalination plant near Wlotzkasbaken on the Namibian coast.
Executive Director Haddis Tilhaun comments on the subject of investment in Africa: "Yes, you might have difficulties investing in Africa, but the returns are so high." There is potential investment returns of 20% or higher in several key sectors: mining, real estate, and information technology. "Africa has the opportunity to create wealth for those who [are willing to] take the risk." United Africa Group has been exploring opportunities for wind power generation since 2007, and also has interests in the mining of uranium.
The Namibian government has adopted trade liberalisation as means for development of the national economy. According to the SADC Trade Development Programme, Namibia’s recent economic performance has been strong and based on prudent policies. The principal export destinations are the EU and South Africa. Almost half of all export are in ores, minerals, copper and refined zinc. Namibia also exports processed and preserved fish.
