Utility-Scale Solar Infrastructure for Improved Grid Capacity

A cell phone telecommunications tower, using solar power only, near Rietfontein, a small town in the Northern Cape Province of South Africa on the border with Namibia

Photo by Grobler du Preez / Shutterstock

Utility-Scale Solar Infrastructure for Improved Grid Capacity
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Infrastructure
Utilities
Business Model Description

Establish and operate large-scale solar power plants for local power generation, or offer power supply to industrial consumers through modified single buyer model (SBM).

Expected Impact

Provide stable, affordable and clean energy to large businesses and industries as well as communities not covered sufficiently by the grid networks.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
10% - 15% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
1,330 MW of power generation capacities required by 2035, partly through renewable energies.
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Climate Action (SDG 13) Life on Land (SDG 15)
Sector Sources
  • I) Republic of Namibia, National Planning Commission, 2018, Implementation of Sustainable Development Goals, Voluntary National Review, https://sustainabledevelopment.un.org/content/documents/19880New_Version_Full_Voluntary_National_Review_2018_single_1_Report.pdf. II) Republic of Namibia, National Planning Commission, 2017, Namibia's 5th National Development Plan (NDP5), https://www.npc.gov.na/?wpfb_dl=294. III) Republic of Namibia, Office of the President, 2016, Harambee Prosperity Plan 2016/17 - 2019/20 Progress Report, Goals and Outcomes, https://op.gov.na/documents/84084/572904/HPP+Report+2019/66c2eef8-3b23-45be-bc2c-5e728699057e. IV) African Development Bank Group, 2020, Namibia: African Development Bank approves $121.7 million loan, Euro 3 million grant to support water and sanitation sector, https://www.afdb.org/en/news-and-events/press-releases/namibia-african-development-bank-approves-1217-million-loan-euro-3-million-grant-support-water-and-sanitation-sector-34727. V) Canning, David & Bennathan, Esra. 2000, The Social Rate of Return on Infrastructure Investment, The World Bank, Policy Research Working Paper Series, https://elibrary.worldbank.org/doi/abs/10.1596/1813-9450-2390. VI) Republic of Namibia, Public Private Partnership Act 4, 2017, Section 40(1), https://laws.parliament.na/cms_documents/public-private-partnership-act-4-of-2017---regulations-2018-353-c96b676b6f.pdf. VII) African Development Bank Group, 2018, 2018 African Economic Outlook, https://www.afdb.org/fileadmin/uploads/afdb/Documents/Generic-Documents/country_notes/Namibia_country_note.pdf. VIII) SDG Center for Africa and Sustainable Development Solutions Network, 2019, Africa SDG Index and Dashboards Report 2019, Kigali and New York: SDG Center for Africa and Sustainable Development Solutions Network, https://sdgcafrica.org/wp-content/uploads/2019/06/SDGS_INDEX_REPORT_2019WEB.pdf. IX) Republic of Namibia, Public Private Partnership Act 4, 2017, Section 40(1), https://laws.parliament.na/cms_documents/public-private-partnership-act-4-of-2017---regulations-2018-353-c96b676b6f.pdf. X) World Bank, 2020, Leveraging Pension Fund Investment for Domestic Development: Namibia’s Regulation 29 Approach, http://documents1.worldbank.org/curated/en/125241594367606090/pdf/Leveraging-Pension-Fund-Investment-for-Domestic-Development-Namibia-s-Regulation-29-Approach.pdf. XI) Ino Harith Capital, Our Partners, https://www.harith.co.za/our-partners-2. XII) Schwab, K, World Economic Forum, 2019, The Global Competitiveness Report 2019, http://www3.weforum.org/docs/WEF_TheGlobalCompetitivenessReport2019.pdf. XIII) Republic of Namibia. Namibian Statistics Agency, 2018, Labour Force Survey 2018 Report, https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NLFS_2018_Report_Final_.pdf. XIV) United Nations, 2018, Accelerating SDG 7 Achievement Policy Brief 12 Global Progress of SDG 7 - Energy and Gender, https://sustainabledevelopment.un.org/content/documents/17489PB12.pdf. XV) Republic of Namibia. Namibian Statistics Agency, 2016, Namibia Household Income and Expenditure Survey (NHIES) 2015/2016 Report, https://d3rp5jatom3eyn.cloudfront.net/cms/assets/documents/NHIES_2015-16.pdf. XVI) DNA Economics, 2021, SAM Multiplier Analysis for the SDG study in Namibia, Six Capitals.
IOA Sources
  • 1) Republic of Namibia, National Planning Commission, 2017, Namibia's 5th National Development Plan (NDP5), https://www.npc.gov.na/?wpfb_dl=294. 2) Global Business Network Program, 2020, Partnership Ready Namibia: Renewable energy, https://www.giz.de/en/downloads/GBN_Sector%20Brief_Namibia_RenewableEnergy_E_WEB.pdf. 3) Republic of Namibia, Namibia Industrial Development Agency, 2020, Long list of candidate PPP Projects. Available on request. 4) Republic of Namibia. Electricity Control Board, Net Metering Rules: Electricity Act, 2007, https://www.ecb.org.na/images/docs/Noticeboard/Gazetted%20Net%20metering%20Rules.pdf. 5) Andrzej Bielecki, Sebastian Ernst, Wioletta Skrodzka, Igor Wojnicki, 2020, The externalities of energy production in the context of development of clean energy generation, Environmental Science and Pollution Research. 27:11506–11530. 6) Danish Energy Management & Esbensen, 2017, Renewable Energy Market Landscape Study covering 15 countries in Southern and East Africa. Volume 2: Country Profile Stakeholder Maps, https://www.entwicklung.at/fileadmin/user_upload/Dokumente/Regionen/Volume_II_Market_Landscape_-Study_-EEP-SEA_CountryProfiles_StakeholderMaps-1.pdf. 7) International Finance Corporation, 2020, Regulatory and Tariff Review for Distributed Generation in the Commercial and Industrial Sectors in Southern Africa, https://www.ifc.org/wps/wcm/connect/090c58a2-2b98-482e-8c6d-b5931ed793e2/202006-Regulatory-Tariff-Review-Southern-Africa.pdf?MOD=AJPERES&CVID=nbDqlVa. 8) Republic of Namibia, Office of the President, 2016, Harambee Prosperity Plan 2016/17 - 2019/20 Progress Report, Goals and Outcomes, https://op.gov.na/documents/84084/572904/HPP+Report+2019/66c2eef8-3b23-45be-bc2c-5e728699057e. 9) EOS Capital Website, About NIDIF, https://www.eoscapital.com.na/nidif. 10) Old Mutual, 2021, Alternative Investments, https://www.oldmutual.com.na/old-mutual-investment-group/alternative-investments/expanded-infrastructure. 11) NamPower, 2019, NamPower Corporate Strategy and Business Plan 2019 - 2023, https://www.nampower.com.na/Page.aspx?p=233. 12) Ministry of Mines and Energy, 2019, Electricity Supply Industry Detailed Market Design, https://www.ecb.org.na/images/docs/Rules_and_Regulations/MSB/MSB_Detailed_Design_Report.pdf. 13) International Finance Corporation, 2020, Regulatory and Tariff Review for Distributed Generation in the Commercial and Industrial Sectors in Southern Africa, https://www.ifc.org/wps/wcm/connect/090c58a2-2b98-482e-8c6d-b5931ed793e2/202006-Regulatory-Tariff-Review-Southern-Africa.pdf?MOD=AJPERES&CVID=nbDqlVa. 14) Ministry of Mines and Energy, 2016, The National Integrated Resource Plan 2016, https://www.ecb.org.na/images/docs/Noticeboard/ELECTRICITY%20SECTOR%20NATIONAL%20INTEGRATED%20RESOURCE%20PLAN%20(NIRP)%202016%20Version%201.pdf. 15) Government Institution Pension Fund of Namibia (GIPF), 2020. 16) Electricity Act 4 of 2017, Republic of Namibia, https://laws.parliament.na/cms_documents/2016---technical-rules-40c94f5c41.pdf. 17) Global Business Network Program, 2020, Partnership Ready Namibia: Renewable energy, https://www.giz.de/en/downloads/GBN_Sector%20Brief_Namibia_RenewableEnergy_E_WEB.pdf. 18) SUNREF, 2020, SUNREF Namibia: Towards a greener future, https://www.sunref.org/wp-content/uploads/2018/05/Brochure-Sunref-Namibie_AFD.pdf. 19) PROCEED, Pathway to Renewable Off-Grid Energy for Development, 2019, https://www.bmbf-client.de/en/projects/proceed. 20) See Annotated Laws & Regulations, Republic of Namibia, https://laws.parliament.na. 21) Ministry of Mines and Energy, Solar Revolving Fund, http://www.mme.gov.na/directorates/efund/srf. 22) Electricity Control Board (ECB), 2021, WACC Calculation 2020 / 2021, available upon request from ECB. 23) Monasa / UNDP interviews with Government Institution Pension Fund of Namibia, RMB Namibia, and Old Mutual Investment Group Namibia, 2020. 24) NamPower, 2019, Corporate Strategy and Business Plan: 2019 – 2023, https://www.nampower.com.na/public/docs/NamPower%20Corporate%20Strategy%20and%20Busness%20Plan%202019%20-%202023%20%20Abridged%20Booklet.pdf.