Namibia’s power utility, NamPower, and CERIM Luderitz Energy, a joint venture between Energy China and locally owned Riminii Investments, on Monday signed power purchase and transmission connection agreements to develop a 50 MW wind power plant in the coastal town of Luderitz, southwestern Namibia.

The envisaged wind power plant will be built for 1.4 billion Namibia dollars (about 96.4 million U.S. dollars) at about 16 km south of Luderitz Town, and is expected to be completed within 27 months, with commercial operation expected by July 2025, NamPower said in a statement.

Speaking at the signing ceremony, NamPower Managing Director Kahenge Haulofu said the commissioning of this project will displace 50 MW of imports, which is a step in the right direction. “The project will significantly contribute to NamPower’s supply portfolio when combined with other generation projects that form part of the Integrated Strategy and Business Plan,” he said.

According to NamPower, CERIM Luderitz Energy will be responsible for the complete development of the power plant, including financing, construction, operation, and maintenance, while NamPower will be the exclusive off-taker of electricity generated from the power plant for the power purchase agreement term of 25 years.

Namibia currently imports about 60 percent of its electricity from neighboring countries such as South Africa, Zimbabwe, and Zambia, making the country vulnerable to price volatility and supply disruptions.