Cenored rethinks pricey solar contracts

The Central North Regional Electricity Distributor (Cenored) is reportedly revisiting some of its solar power contracts as tariffs continue to rise.Anirep Solar, which owns the Otjiwarongo solar plant, is among the producers with which it has previously renegotiated a power purchase agreement.In a recent interview with Namibian Sun, Matengu said some independent power producers initially supplied electricity at about 80 cents per kilowatt-hour (kWh), compared with NamPower's prices of between N$1.50 and N$1.70 at the time.He said some of these solar tariffs had since climbed to almost N$3/kWh, prompting Cenored to question the cost of continuing with the agreements.“Why should we continue this? NamPower is even now cheaper than you guys,” Matengu said, explaining the reasoning behind the negotiations.He said Cenored was renegotiating contracts signed under previous management because tariff escalations had changed the price comparison between electricity from independent producers and supplies from NamPower.The ECB's approved tariff schedule for the 2025/2026 financial year lists Anirep (HopSol), which supplies Cenored, at N$1.52/kWh. The same producer's approved tariff for electricity supplied to NamPower was N$2.03/kWh.Other independent power producers supplying NamPower had different approved tariffs. Khan Solar PV was listed at N$0.49/kWh, Hardap PV at N$1.05/kWh and Omburu at N$2.40/kWh.The figures show that approved tariffs vary considerably between producers and supply agreements. They do not establish the contracts Matengu was referring to when he spoke of rates approaching N$3/kWh.Outsourced powerNamPower also sought a bulk electricity tariff increase for the 2025/2026 financial year. Its application proposed raising the average bulk generation and transmission tariff from N$1.9856/kWh to N$2.3319/kWh, an increase of 17.44%. These were the requested rates, rather than confirmation of the final approved tariff.Under Namibia's modified single buyer (MSB) market model, introduced in September 2019, eligible electricity consumers can procure a portion of their electricity directly from independent power producers. The model was designed to introduce greater competition and choice into the electricity market, while NamPower retains its central role in electricity supply.The issue also touches on the history of the Otjiwarongo solar plant, one of the country's earliest grid-connected solar facilities. Commissioned in 2015, the original plant generated about 5 MW of electricity. Its owner, Anirep, later expanded the facility to approximately 13 MW, adding battery storage. The upgraded plant was commissioned in March following an expansion that cost over N$200 million.Anirep previously reported that the Otjiwarongo plant's tariff had reached N$1.87/kWh in 2020 and N$1.96/kWh in 2023. The company said it proposed reducing the tariff to N$1.34/kWh as part of the expansion. It remains to be confirmed whether Matengu's comments about rising solar tariffs specifically relate to this plant or other Cenored contracts.

Cenored rethinks pricey solar contracts

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Namibian Sun 2026-10-15

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Cenored rethinks pricey solar contracts

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Namibian Sun 2026-10-15

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