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German-Funded, Chinese-Built: Namibia’s Largest Solar Project Highlights Complex Global Energy Partnerships

In September 2024, Namibia’s national power company signed an agreement with two Chinese companies to build the country’s largest solar power station. Notably, 80% of the project’s funding (70 million euros) comes from Germany’s KfW Development Bank, while the remaining funds will be provided by Namibia’s national power company.

The project, located in Rosh Pinah in southern Namibia, will be built by China’s Jiangxi International Economic and Technical Cooperation Company and Chint New Energy Development Company. Expected to be operational by Q2 2026, the plant will increase Namibia’s total photovoltaic capacity from 500,000 to 600,000 kilowatts, significantly reducing the country’s dependence on imported electricity from Zambia and South Africa.

Industry insiders revealed that only three Chinese companies and one Indian company bid for the project, with no German companies participating despite German funding. One anonymous German solar company operating in Namibia noted that this pattern of “German money, Chinese construction” is common in such energy projects.

The situation raises questions about China’s growing influence in Africa, particularly given that the EU has designated China as a systemic competitor. However, KfW board member Christiane Laibach emphasized that the bidding process followed international standards and was objective and economical.

Namibia, with its sparse population of 3 million and abundant desert regions, has become an attractive location for green energy facilities due to its dry subtropical climate and abundant sunshine. Germany, Namibia’s former colonial ruler, is heavily investing in green power projects in the country, partly to produce hydrogen for its own energy transition, though these projects have raised environmental concerns about their impact on fragile desert ecosystems.

Source: Deutsche Welle, October 9, 2024
https://p.dw.com/p/4lZhQ