Managing director of Arandis Power plant, Ezio Vernetti has called on Nampower to resume negotiations on the establishment of the 120-megawatt (MW) Hybrid solar project.

Arandis Power spent N$40 million (approximately R39 million) to complete the full bankable feasibility study, including full EIA clearance, construction and operations’ contracts and fuel supply agreements, amongt others according to a report by the Namibian Press Agency.

The negotiations of the envisaged power plant were, however, suspended last year.

The negotiations on the power plant were temporarily suspended by NamPower in June 2014, pending the latter’s completion of its tender for another 250MW power station in Walvis Bay.

“Our position is that we remain hopeful that NamPower will resume negotiations with us on our original 120MW HFO Hybrid solar project as soon as possible. We have enjoyed good relations with NamPower thus far, but our hope is that the company resumes the negotiations,” Vernetti said in an interview.

These negotiations were temporarily suspended to allow NamPower time to complete its tender for another 250MW power station.

NamPower has selected Xaris Energy as its ‘preferred bidder’, but Arandis Power is currently the official “reserve bidder”. Xaris intends to build a 250MW gas-fired liquid natural gas (LNG) power plant in Walvis Bay.

The development of the 120MW hybrid heavy fuel oil power-generation plant in Namibia is aimed at contributing almost 25% of Namibia’s power requirements.

Currently, Namibia imports more than 60% of its electricity needs from neighbouring countries.

The plant, which was expected to be up-and-running in 2016, is considered as a short-term, critical energy supply project until the Kudu gas power project starts functioning in 2018.

–Nampa