The slowdown in the property market has resulted in more companies seeking funding for renewable energy projects, Bank Windhoek Managing Director, Baronice Hans, disclosed in an interview this week.
Hans said there has been an increase in the frequency of renewable energy projects seeking funding compared to those of large scale property developments indicating that the use of renewable energy is gaining momentum in Namibia.
She attributed the slowdown in the property market mainly because of the new regulatory requirement of a 10 percent deposit for property funding.
Hans said another attraction for renewable projects was that most of them have NamPower as an uptaker.
“They are also guaranteed of a tariff with an inflationary increase,” she said.
Hans said most of the projects that Bank Windhoek has funded are joint ventures between local and foreign investors.
“We work with various international banks on these projects to make sure that we do a proper due diligence.”
Bank Windhoek is set to fund an additional five renewable energy projects in the coming few months.
“The projects we are looking at are very attractive and also very sustainable,” Hans said.
According to the 2018 Integrated Annual Report of the Capricorn Group, the mother company of Bank Windhoek, the bank through funding and technical assistance obtained from the Sustainable Use of Natural Resources and Energy (SUNREF) initiative, was able to connect financial institutions and clients to a number solar energy projects that will address some of Namibia’s long term challenges.
The projects include N$38 million for a solar plant at Aussenkehr, N$100 million for one at Trekkopje, close to Arandis, N$100 million for a wind farm at Namdeb Elizabeth Bay Diamond Mine, close to Luderitz and N$100 million for a solar plant at Okatope, close to Ondangwa.
Minister of Mines and Energy, Tom Alweendo, recently said Namibia must explore viable alternative sources of electricity generation.
In support of these objectives, the ministry in 2017 finalised both the National Energy Policy and Renewable Energy Policy.
“Government not only remains committed to supporting renewable energy technologies, but is intent to actively introduce and proliferate the use of these technologies to complement conventional energy sources,” Alweendo said.