Solar PV water pumping study - FINAL REPORT ... - UNDP, Namibia

Feasibility Assessment for the Replacement of Diesel Pumps with Solar Pumps
FINAL REPORT: September 2006
Table 4.2 lists the number of boreholes for two ranges of constant hydraulic loads. The
potential number of boreholes suitable for PVP figures indicates the long term market
potential for PVP, assuming that wind pumps, which probably account for 80% of the
technology used on these boreholes, will in future be replaced by PVPs.
Table 4.2: Potential number of boreholes suitable for PVP
Hydraulic load
[m 4 /day]
Number of
boreholes
Suitable for
1,000 20,700 Grundfos SQ Flex (1400)
Lorentz Eta
Total Energie TSP 1000
1,000 to 3,000 9,400 Dual Grundfos SQ Flex
(1400) borehole allowing
Total Energie TSP 2000+
During the last five years approximately 670 PVPs were installed (refer to Table 2.2).
Fahlenbock (1996) established that approximately 250 PVPs were installed by 1995.
Assuming that another 400 PVPs were installed between 1996 and 2000 (average of 80
PVPs per year) then the overall number of PVPs installed to date is 1,220.
Although it is unrealistic to assume the figures in Table 4.2 to be the potential market for
PVPs, it nevertheless indicates that there is significant potential for PVPs to replace diesel
pumps and aging wind pumps.
Due to the financial realities as described in section 3 it would be a reasonable scenario to
estimate that the take-up of PVPs over the next ten years will be 20% of the above number
of boreholes. That would result in approximately 6,000 PVPs, which translates to a potential
market of 600 PVPs per annum and would mean that the current installation rate of 225
PVPs (2005) needs to be tripled.
4.2 FINANCING
Financing of renewable energy systems has historically been a challenge as many main
stream banking institutions did not consider RETs as an asset and insurance, a prerequisite
for financing, was often not simple to arrange. This picture has however changed recently
with the activities of the NAMREP programme. At present there are three financing
possibilities, these being:
• Solar Revolving fund (SRF)
• Bank Windhoek
• AgriBank
The Solar Revolving Fund was set up by the MME in 1996 for the purpose of facilitating offgrid
rural electrification through the use of Solar Home Systems. Since 2004 the SRF is
offering loans for PVPs and Solar Water Heaters too. The SRF, currently administered by
Konga Investments provides a five year loan repayment period with a 5% deposit against an
attractive interest rate of 5%. At current inflation rates of 4.5% this means that the real
interest rate of the loan is about 0.5%! The SRF has ceiling amounts for each of its loan
categories, which are SHS N$ 30,000, PVP N$ 50,000 and Solar Water Heaters N$ 30,000.
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