Name: Khan Solar Power Station
Address: NA

Overview

The Khan Solar Power Station is a solar energy facility currently under construction in Namibia. The project represents a significant addition to the nation's renewable energy portfolio, featuring an installed capacity of 20 MW (27,000 hp). This solar farm is owned and developed by Access Aussenkehr Solar One Namibia, an independent power producer (IPP) based in Windhoek, the capital city of Namibia. The station is designed to feed electricity directly into the national grid, contributing to the diversification of Namibia's energy mix.

Access Aussenkehr Solar One Namibia serves as the primary operator and developer of the project. As a Namibian-based IPP, the company is responsible for the development, construction, and operational management of the solar facility. The strategic location within Namibia leverages the country's high solar irradiance, making it an ideal candidate for photovoltaic energy generation. The project's development is part of a broader effort to expand solar infrastructure in the region, aiming to reduce reliance on traditional power sources and enhance energy security.

The commercial framework for the Khan Solar Power Station is defined by a long-term power purchase agreement (PPA) with NamPower. NamPower is the national electricity utility company of Namibia and is wholly owned by the government of Namibia. The PPA has a duration of 25 years, governing the terms under which the energy generated by the solar station will be purchased by the national utility. This agreement provides financial stability for the project and ensures a consistent supply of solar energy to the national grid. The partnership between Access Aussenkehr Solar One Namibia and NamPower highlights the collaboration between private sector developers and state-owned utilities in advancing Namibia's energy infrastructure.

The project is scheduled for commissioning in 2022, marking a key milestone in its development timeline. Upon completion, the 20 MW capacity will contribute to the overall generation capacity of the Namibian grid. The construction phase involves the installation of solar panels, inverters, and transmission infrastructure necessary to connect the plant to the national network. The successful completion of the Khan Solar Power Station will demonstrate the viability of large-scale solar projects in Namibia and may serve as a model for future renewable energy developments in the country.

Technical Specifications and Infrastructure

The Khan Solar Power Station is developed on a 16-hectare site in Namibia. The facility is designed with a total installed capacity of 20 megawatts (27,000 hp). The energy generated will be purchased by NamPower, the national electricity utility company, under a 25-year power purchase agreement. The station is currently under construction and was commissioned in 2022.

Technical Parameters

Parameter	Value
Entity Type	Solar Farm
Primary Fuel/Source	Solar
Country	Namibia
Operational Status	Under Construction
Capacity	20 MW
Operator	Access Aussenkehr Solar One Namibia
Commissioned	2022
Site Area	16 hectares
Solar Panels	33,000
Inverters	100
Single-Axis Trackers	67

The infrastructure includes 33,000 solar panels, 100 inverters, and 67 single-axis trackers. These components are integrated into the 16-hectare site to optimize energy capture. The technical specifications support the 20 MW capacity target. The project is managed by Access Aussenkehr Solar One Namibia, ensuring alignment with local energy needs. NamPower serves as the primary off-taker, securing the output through the 25-year PPA.

Economic Impact and Power Purchase Agreement

The Khan Solar Power Station operates under a long-term commercial framework designed to secure revenue stability for the independent power producer (IPP) and ensure consistent energy supply for Namibia’s national grid. The project is owned and developed by Access Aussenkehr Solar One Namibia, a Namibian IPP based in Windhoek. The electricity generated by the 20 MW facility will be purchased by NamPower, the national electricity utility company which is wholly owned by the government of Namibia. This arrangement establishes a direct link between private solar development and state-owned distribution infrastructure.

Power Purchase Agreement Structure

A 25-year power purchase agreement (PPA) governs the terms under which the energy will be sold and bought. This duration is typical for solar photovoltaic projects, aligning with the expected operational lifespan of the solar panels and inverter systems. The PPA provides Access Aussenkehr Solar One Namibia with a guaranteed off-taker, reducing market risk and facilitating debt financing for the construction phase. For NamPower, the agreement locks in a fixed volume of renewable energy, aiding in the diversification of the national energy mix and reducing reliance on imported power or thermal generation.

Economic Considerations and Cost Comparison

While the specific price per kilowatt-hour (kWh) is not explicitly detailed in the available project documentation, the economic model relies on the competitive advantage of solar energy in Namibia’s high-irradiation environment. Solar power generally offers a lower levelized cost of energy (LCOE) compared to fossil fuel-based generation, particularly diesel or natural gas plants, which are subject to volatile global commodity prices. By securing a 20 MW addition to the grid through a 25-year PPA, NamPower can mitigate exposure to fuel price fluctuations. The project contributes to the broader economic impact by introducing stable, long-term renewable capacity into the Namibian energy market, supporting the transition from thermal dominance to a more diversified generation portfolio.

Why it matters

The Khan Solar Power Station represents a significant shift in Namibia's energy infrastructure strategy, highlighting the growing importance of independent power producers (IPPs) in diversifying the national grid. This structure allows for private sector investment and operational expertise to complement the national utility, NamPower, which remains the primary off-taker for the generated electricity. The involvement of NamPower, a wholly government-owned entity, ensures that the solar output is integrated into the broader national distribution network, providing stability while introducing renewable energy sources.

The economic framework of the Khan Solar Power Station is defined by a 25-year power purchase agreement (PPA) between Access Aussenkehr Solar One Namibia and NamPower. This long-term contract is critical for securing investment in solar infrastructure, offering price certainty for both the producer and the utility. By locking in purchase terms over a quarter-century, the PPA mitigates market volatility and facilitates the financial planning necessary for renewable energy deployment in Namibia. This model supports the transition from traditional fossil fuel dependencies by establishing a predictable cost structure for solar-generated kilowatt-hours.

Impact on Energy Costs and Mix

The deployment of the Khan Solar Power Station contributes to the reduction of energy costs compared to conventional fossil fuel sources. Solar power, once the initial capital expenditure is covered, offers a competitive levelized cost of energy, particularly in Namibia's high-irradiance environment. The 20 MW capacity, equivalent to 27,000 horsepower, adds a substantial baseline of renewable generation to the national mix. This helps to displace more expensive thermal generation, thereby lowering the overall cost of electricity for end-users and industries reliant on the NamPower grid. The project underscores the strategic value of solar energy in enhancing economic efficiency within the country's power sector.

What are the key details of the NamPower PPA?

The power purchase agreement (PPA) for the Khan Solar Power Station is a foundational commercial instrument that defines the financial and operational relationship between the project developer and the national off-taker. This agreement is governed by a 25-year term, establishing a long-duration framework for the procurement of solar energy in Namibia. The contract binds Access Aussenkehr Solar One Namibia, the independent power producer (IPP) based in Windhoek, to supply electricity to NamPower, the country's national electricity utility. NamPower operates as a wholly government-owned entity, ensuring that the generated solar power is integrated into the national grid under state-backed procurement terms. The 25-year duration of the PPA is a standard mechanism in solar energy projects, designed to provide revenue certainty for the independent power producer while securing a fixed supply of renewable energy for the national utility. This extended timeframe allows Access Aussenkehr Solar One to amortize the capital expenditures associated with the 20 MW solar farm construction. The agreement outlines the specific terms under which the energy will be sold and bought, creating a structured market mechanism for the project's output. As the plant is under construction with a commissioning target of 2022, the PPA serves as the primary financial anchor for the project's viability. The commercial structure relies on the direct bilateral relationship between the IPP and the national utility, bypassing more complex auction mechanisms that might involve multiple buyers. This direct procurement model is common in developing energy markets where the national utility retains significant control over the generation mix. The agreement ensures that NamPower has a guaranteed source of solar power, contributing to the diversification of the national energy portfolio. The terms of the PPA are critical for attracting investment from the independent power producer, as they define the cash flow projections over the life of the asset. The specific pricing details and technical performance metrics within the PPA are not explicitly detailed in the available grounding sources, but the existence of the 25-year contract confirms a stable commercial arrangement. The agreement facilitates the transfer of risk and reward between the two parties, with the IPP assuming generation risk and NamPower assuming demand and payment risk. This structure supports the development of the Khan Solar Power Station as a key component of Namibia's renewable energy infrastructure. The PPA remains in effect for the duration of the project's operational life, providing a long-term revenue stream for Access Aussenkehr Solar One Namibia.

Khan Solar Power Station