DUTCH TO FINANCE WIND PROJECT

DECEMBER 2008
WINDHOEK

The Dutch government will co-finance a wind-power plant in Namibia, in one of the few renewable energy projects to take root with joint financing.

The Netherlands has guaranteed to fund almost a third of the Aeolus Power Generation project.

A license was granted to investors for the erection of a large wind-power project that could eventually generate 25% of Namibia’s electricity supply.

The Electricity Control Board (ECB) handed the licence over to Aeolus Power Generation Namibia, a joint venture between Dutch businessman, Leo van Gastel, and Namibia partner, the United Africa Group.

Both hold a 40% stake in the venture and the remaining 20% is reserved for future employees.

The mother company, Aeolus Associated, is registered in Luxembourg.

Van Gastel intends to inject nearly N$1 billion into the establishment of a large wind park that will generate 92 megawatt (MW) of electricity – roughly a quarter of Namibia’s energy needs of approximately 400 MW.

The proposed investment of €99 million (about N$1 billion) provides for 102 wind turbines to be erected outside Lüderitz, Oranjemund, Swakopmund, Henties Bay and Walvis Bay.

The intention is to sell the electricity thus generated to NamPower to be fed into the national power grid.

The cost of generation is estimated to be N$0.25 per kilowatt hour (KWh) and Aeolus intends to sell electricity to Nampower at N$0.35 per KWh.

“The Government intends to make Namibia self-sufficient regarding its electricity supply by 2010,” said Mines and Energy Minister, Erkki Nghimtina.

“The Dutch government will provide a grant of N$300 million. The rest of the funds needed will be funded through equity and loans,” the Dutch businessman said.

“There are no conditions attached to the grant and the Namibian government is not required to guarantee the Dutch grant.”

According to Van Gastel, about 1 500 jobs will eventually be created in the wind-power industry, as turbines could be exported to other countries at a later stage.

The Dutch investor had previously partnered with energy consultant Michael Heita under the name Aeolus Green Energy Namibia.

The company also plans to establish a centre of excellence in wind generation technology in Namibia, where technicians will be trained.

A previous attempt by a Dutch company to set up a wind-power project in Greece, in which Van Gastel was involved, failed because of compatibility problems with the Greek national power grid to receive the electricity generated from wind parks.

Source: Etango Magazine, December 2008