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Namibia’s power utility firm, NamPower, on Tuesday signed a 25-year 124-million-U.S.-dollar agreement with Diaz Wind Power, for the off-take of electricity from a 44 megawatt wind power generation plant.

The plant, which will be developed by Diaz Wind Power by 2019, will be set up in Luderitz, in the south of the country; it is expected to supply electricity to more than 10,000 households.

NamPower Corporate Communications Officer Rosa Nikanor said the two parties also signed two other agreements, namely the Project Development Connection and Transfer Agreement, which makes provision for the building of the transmission infrastructure that will connect the wind generation plant to the NamPower transmission system, and the Transmission Agreement, which makes provision for the use of the transmission system by Diaz.

“The project will include all requisite civil, electrical and mechanical installation works at the site, the construction of the Diaz substation and a 27km transmission line to NamPower’s 132kV Namib substation, as well as upgrades to NamPower’s Kokerboom and Namib substations,” she added.

NamPower Managing Director Kahenge Haulofu hailed the agreement as an important milestone in the expansion of the Namibian power generation sector.

In a statement, Haulofu emphasized NamPower’s commitment to working with independent power producers with viable renewable energy projects to develop new-generation power plants to complement conventional power generation sources and add to the current generation capacity. Enditem

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