Asset manager Mergence has increased its shareholding of the two Ejuva renewable energy projects, in Gobabis, Namibia, from 17% to a majority stake of 66%.
It acquired the 49% interest previously held by co-developer and initial part-financier energy engineering company CIGenCo.
The two adjacent Ejuva solar power plants have a combined output of 10 MW and started operations in August 2018 as part of the Namibian Feed-in Tariff (Refit) programme.
The Ejuva projects are backed by 25-year power purchase agreements with Namibian national power utility NamPower and feed an estimated 25.8 GWh/y into Namibia’s national grid.
The Refit programme was initiated by the Ministry of Mines and Energy and the Electricity Control Board to establish independent power producers in Namibia.
The increased Mergence shareholding demonstrates further localisation of the renewable energy industry in Namibia, says Mergence portfolio manager Hileni Nghinaunye.
“The renewable energy sector has held up well over the past year during the Covid-19 pandemic. This is very good news, as it means vital sectors, such as clinics and hospitals in the healthcare sector, as well as manufacturing, have continued to benefit from an uninterrupted supply of power,” she says.
Mergence's increased stake in Ejuva is in line with the fund manager’s broader strategy to position itself as a strategic regional energy company focused on tracking the acute power shortage in Namibia.