Standard Bank Group Ltd has pledged $106 million to fund the development and construction of the 44-megawatt (MW) Diaz Wind Project located near Lüderitz in the Karas Region in Namibia, spearheaded by French renewable energy developer Innovent SAS.
This significant investment is a pivotal step in advancing Namibia’s renewable energy ambitions, aligning with the country’s goal to source 70% of its electricity from renewables by 2030.
The project supports Namibia’s plan to reduce its dependence on imports while developing its renewable resources, according to the Renewables Now Report.
About the Diaz wind project
The Diaz Wind Project consists of 11 turbines, each with a capacity of 4 MW.
Once operational, it’s expected to produce over 230 gigawatt-hours (GWh) of clean electricity annually, meeting approximately 5-6% of Namibia’s total electricity demand, estimated at 4,000 GWh per year.
According to InnoVent, this output will prevent the emission of 200,000 tons of CO2 annually, delivering a much-needed environmental boost to the Southern African nation, which is already feeling the heat of climate change.
In addition, the project builds on Innovent’s established presence in Namibia, where it already operates 25 MW of solar power, generating 76,500 megawatt-hours (MWh) in 2023.
The impact of the Standard Bank loan
The $106 million loan from Standard Bank is more than a mere financial transaction, it can be seen as confidence in Namibia’s renewable energy future.
In 2022, the bank raised N$400 million through its first-ever green bond issuance in Namibia, specifically aimed at funding renewable projects, according to a Renewable Energy News Report.
“In collaboration with InnoVent SAS, this project furthers Namibia’s energy independence. The project tangibly builds on our commitment to sustainability and provides benefits for the broader Namibian populace,” says Standard Bank Investment Banking energy and infrastructure finance VP Pius Alweendo.
In emerging markets like Namibia, where capital for infrastructure can be difficult, Standard Bank’s backing sends a powerful signal to other investors and stakeholders that Namibia is ready for renewable energy growth.
For instance, Namibia’s goal is to export power and advance Africa’s collective energy security.
“The collaborative effort with Standard Bank in driving Namibia’s energy independence and the country’s energy transition is evidence of a shared value that has enabled this vision,” says Innovent SAS president Grégoire Verhaeghe.
