renewable
renewable

Namibia has committed its Intended Nationally Determined Contributions to increase the share of renewable energy in electricity production to 70 percent by the year 2030.

This is according to the Development Bank of Namibia’s chief executive officer Martin Inkumbi Tuesday when he announced the bank’s financial contribution to the construction of a wind farm in the south of the country.

The Ombepo Wind Farm near the small town of Lüderitz, about 490 kilometers from Windhoek, will generate an estimated 24MW of renewable energy when fully operational.

In a statement Tuesday, the Development Bank of Namibia said they have funded the project to the tune of 180 million Namibian dollars (13.8 million U.S dollars) so far.

The project, the Development Bank of Namibia said, is owned by the Lüderitz Town Council (5 percent), and InnoSun (95 percent).

InnoSun is 30 percent owned by a black empowerment group, Black Diamond Investments.

Inkumbi said they view themselves as catalytic in providing finance in areas that are untested for risk in the commercial finance sector, and that the bank’s finance for renewable energy is no different.

Inkumbi said the development bank has so far provided finance to five photovoltaic plants at a combined cost of 461 million Namibian dollars (35 million U.S. dollars).

Inkumbi said funding renewable energy projects make economic sense given that renewable energy is not reliant on imports such as coal and fuel.

He further said that renewable energy reduces indirect costs such as social and environmental health impacts that are implicit to carbon fuels.

“Although Namibia will remain dependent on carbon fuels such as oil, petroleum and coal for the foreseeable future, an increased component of renewable energy will mitigate environmental and health risks,” Inkumbi said.

Through its mandate to provide finance for development and its enterprise-wide risk management framework, Inkumbi said, the Bank can successfully mitigate its risk while demonstrating the viability of specific business models from the financing viewpoint. Enditem

Source: Xinhua/Newsghana.com.gh