Namibia Stock Exchange listed Alpha Namibia Industries Renewable Power Limited (ANIREP) has announced that it’s in the process of acquiring stakes in two renewable energy projects in Namibia.
The company has targeted a 70 percent stake in a 10 MW solar power plant commissioned in 2015 and 2016 connected to the national grid through two 5MW solar PV with a 25 year power purchase agreement contract.
The company’s second planned acquisition is an 80 percent stake in a contracting company which has installed about 100 MW of the 150 MW solar PV in Namibia.
“In February 2020, shareholders approved the acquisition of two companies. Finalization of the approved transactions is at present subject to fulfillment of conditions precedent,” the company said.
“The acquisitions have not been recorded as investments in this financial year and will only reflect in the next financial year as assets, once the transactions become unconditional.”
The company said the acquisitions will allow the company to take an early lead in investing in the sector.
“As the first listed strategic investor in infrastructural renewable energy projects in Namibia, the acquisitions mentioned above positions ANIREP to take an early mover advantage to expand and install new capacity in Namibia to supply to contested customers and unlock the further opportunities offered by NIRP and to attract further institutional investors and unlock a potentially higher investment allocation to infrastructure investments.”
“The sector in which ANIREP operates is considered vital and essential, as energy is a necessity for most aspects of life and business. Namibia aspires to be a net-exporter of renewable sourced electricity by 2030. NIRP estimates that 70 percent or more of the electricity installed capacity will come from renewable sources by 2030. This is evident in Nampower’s aggressive 5 year (2019-2023) strategy plan to develop 170MW of renewable energy. ”
ANIREP said increased potential remains in the country’s energy sector, while it looks at giving a sound investment return for its investors.
“Going forward, the National Integrated Resource Plan (NIRP) forecasts the generation peak to approximately 1,328.5 MW by year 2035, which would require an overall investment of between N$90 – 97 billion to meet the projected demand of electricity. The retirement industry has significant amounts of capital, but so far, little of this has participated in long-term infrastructural renewable energy projects. ANIREP was created to provide a bridge for Capital Markets into the Infrastructural Renewable Energy Projects.”
“The company intends to provide investors with good, predictable, and long-term yielding investments generating a consistent return on equity over the long term, whilst the listing facilitates liquidity for investors to further invest or exit.”
In its results for the year ended 29 February 2020, ANIREP incurred listing and operating expenses of N$ 5,074,550 resulting in a loss after tax for the period of N$825,476.
“The expenses incurred were in line with the permissible and operating expenses per the Pre-listing Statement.”
ANIREP is a company initiated by three major players in the industry. They are Tulive Private Equity an Infrastructural fund manager, Jordaan Oosthuysen Nangolo a construction project cost and management consultant, EMCON PSE Consultants an engineering consultant and Doranova Oy a Finland based biogas and soil remediation Engineering Procuring and Construction company.