Sustainable Renewable Energy

Our Strategy & Approach

“providing clean affordable renewable energy while safeguarding the health and safety of our people and giving back to our environment and communities in a socially responsible way”

Our aim is to become the largest developer and operator of utility scale renewable energy assets in Namibia, and grow a well established brand, leveraging on the track record of Hopsol Africa “HAFR” and ANIREP Solar. Scale is vital for us, since the largest renewable energy operator will have greater negotiating power with original equipment manufacturers and project finance lenders. This in turn improves our cost and capital structure, which enables us to lower our tariffs and secure more clients.

We have already proven to be a reliable EPC that successfully and expediently executes on our development pipeline and wins repeat business. We will be leveraging on the platform we have established to become the largest renewable energy company in Namibia and, in due course, in the region.

We seek to drive the levelised cost of electricity towards the long term goal of U$ 0,03 cents per KWh, using our in-house EPC capabilities to reduce the development cost and an appropriate capital structure to reduce the funding cost, by mobilising significant long term equity capital and competitively priced debt.

Solar power is a cleaner, faster-to-build and cost-effective alternative energy solution. The typical project plan timeline for our projects is approximately eighteen months. The major stages of project life cycle are bidding, PPA, EIA, land permits, financing, material ordering and delivery, installation, commissioning, as well as monitoring and maintenance.

• Once a bid is won, a PPA is signed, which reflects the commercial operation date before which a plant should be commissioned.
• Once land permits are obtained, our EPC team works very closely to construct and deliver the plant in the most efficient manner.
• Once commissioned, our O&M team monitors performance of all the projects near real time.
• We finance our projects with a mix of equity and project debt.

Capital discipline

We are focused on delivering returns above our cost of capital and all new projects are expected to deliver returns that ANIREP gauges based on IRR against Investment risk at different stages of development/acquisition from Pre - Commercial Operation Date to Post Commercial Operation Date contingent on factors that attributable to lifecycle of business We apply our highly disciplined strategy towards growth and capital allocation, concentrating on developing projects which fit within our investment criteria of long-term contracted projects that can leverage the expertise we have built through our operating platform.

Capital discipline

We are focused on delivering returns above our cost of capital and all new projects are expected to deliver returns that ANIREP gauges based on IRR against Investment risk at different stages of development/acquisition from Pre - Commercial Operation Date to Post Commercial Operation Date contingent on factors that attributable to lifecycle of business We apply our highly disciplined strategy towards growth and capital allocation, concentrating on developing projects which fit within our investment criteria of long-term contracted projects that can leverage the expertise we have built through our operating platform.

Financing strategy

Our long-term financing strategy is to access international capital markets, to enhance access to and lower the cost of capital leading to better economics for our customers and shareholders. We intend to diversify our capital sources by establishing global relationships and strategic partnership with various sources including international, regional and local pension funds, international green institutional investors, development finance institutions, export credits institutions, domestic and international lenders, and public equity. In the long term, we will also look to issue Green Bonds.

Financing strategy

Our long-term financing strategy is to access international capital markets, to enhance access to and lower the cost of capital leading to better economics for our customers and shareholders. We intend to diversify our capital sources by establishing global relationships and strategic partnership with various sources including international, regional and local pension funds, international green institutional investors, development finance institutions, export credits institutions, domestic and international lenders, and public equity. In the long term, we will also look to issue Green Bonds.

Capital allocation

We seek to optimize the cash flow generation from each of our projects. Our strong and predictable cash flow generation is the basis for funding new growth projects (acquisition opportunities and developments), and also supports our progressive dividend policy. We view ANIREP as a dividend play in the short to medium term, with long term capital appreciation. We therefore intend to use the cash generated from operations to pay out dividends, not for reinvesting, with our yield to be bench marked against cash and other industry players.

Capital allocation

We seek to optimize the cash flow generation from each of our projects. Our strong and predictable cash flow generation is the basis for funding new growth projects (acquisition opportunities and developments), and also supports our progressive dividend policy. We view ANIREP as a dividend play in the short to medium term, with long term capital appreciation. We therefore intend to use the cash generated from operations to pay out dividends, not for reinvesting, with our yield to be bench marked against cash and other industry players.

A sustainable approach

Sustainability is core to our DNA, and we fully understand that we can only thrive in the long term through profitable solutions to the world’s problems, thereby creating value simultaneously for both shareholders and society. Sustainability for us means “providing clean affordable renewable energy while safeguarding the health and safety of our people and giving back to our environment and communities in a socially responsible way”. Our approach to sustainability is integrated across our core business activities.

A sustainable approach

Sustainability is core to our DNA, and we fully understand that we can only thrive in the long term through profitable solutions to the world’s problems, thereby creating value simultaneously for both shareholders and society. Sustainability for us means “providing clean affordable renewable energy while safeguarding the health and safety of our people and giving back to our environment and communities in a socially responsible way”. Our approach to sustainability is integrated across our core business activities.

Renewable Energy

Highlights for the year

Otjiwarongo Plant

Production

Performance

Grootfontein Plant

Production

Performance

m About

"ANIREP" Alpha Namibia Industries Renewable Energy Power Limited was established for the purpose of facilitating the investment of long-term capital in infrastructural renewable energy projects in Namibia and Sub-Sahara Africa.