Cenored and Alpha Namibia Industries Renewable Power Limited have agreed to reduce the current electricity tariff from 1.96 kilowatts to 1.34 kilowatts, effective next March.

At present, only about 57% of Namibia has access to electricity due to high tariffs.

It is for this reason that Cenored had discussions with ANIREP, the new majority shareholder of HopSol Africa, in exchange for six additional megawatts to reduce tariffs below Nampower.

This will be made possible by the Otjiwarongo 11 MW solar PV plant, which has the capacity to power about 11,000 houses.

"The plant capacity will now also be increased from 5 MWp to 11 MWp with an integrated 3 MW of BESS capacity, a first of its kind once again in the electricity distribution industry. The new conditions will also see the parties to the PPA renegotiating the indexation every five years to ensure win-win rates reflective of the prevailing economic conditions and energy pricing trends," said Robert Kahimise, CEO of Cenored.

ANIREP Managing Director Iyaloo ya Nangolo says that once completed, Cenored will not only benefit from lower tariffs, but it will also provide sustainable management of demand during peak hours.

"This will be made possible by incorporating the first regulated energy storage system, also known as the battery storage system, of 3 MW and 9 MWh in the country, which will see Cenored assume yet again a leading role as a regional energy distributor in innovative power management. This is a very significant and notable achievement as the first project of its kind in Namibia."

ANIREP plans for the project to be wholly designed, procured, and built by Namibian entities.