Namibia and Angola have agreed to sign the implementation agreement for the proposed US$1.2 billion Baynes Hydro-Power Project next month.
Angola and Namibia government lawyers are set to meet and finalise the legal review of the Baynes Binational Implementation Agreement, with Namibia set to host the joint review meeting in Windhoek this month.
This comes after a meeting held this week between Angola’s Minister of Energy and Water Joắo Baptista Borges of Angola and Namibia’s Minister of Mines and Energy Tom Alweendo revealed that the Baynes Transmission Interconnection feasibility study is at an advanced stage, and is expected to be completed by mid-2025.
The two ministers also announced that the public model has been deemed as the most suitable implementation model for the Baynes Binational Hydro-Power Project.
“It is being recommended to the two Governments for final consideration and endorsement before September 2024,” it was said.
The meeting which approved the Updated Techno-Economic Feasibility Study Report of 2023 for the project, “approved the development of an additional regulating dam, about 12km downstream from the main dam, which will have an installed capacity of 21MW, and will also serve as a road corridor bridge.”
The creation of a joint bank account and transformation of the two Baynes Project Offices, into a Joint Baynes Implementation Unit was also approved.
“Approved the establishment of a joint bank account in either Luanda or Windhoek, to be managed by the Joint Baynes Project Implementation Unit, and both Government to allocate annual budgets to the Joint Baynes Project Implementation Unit, Approved the transformation of the two Baynes Project Offices, into a Joint Baynes Implementation Unit, which will be situated either in Luanda or Windhoek.”
The Baynes Hydroelectric Power Station is a planned 600-megawatt hydroelectric power plant located at Namibia’s northwest border with Angola.
The project carries a construction budget of US$1.2 billion and is expected to take six years to complete. Following its implementation, both Angola and Namibia are expected to utilise 300 megawatts each from the power station.
Like Ruacana Power Station, the proposed dam will function as a mid-merit peaking station, so NamPower can avoid buying imported power during peak hours.
According to a recent energy investment study conducted by TMP Public Consultancy, a UK consultancy, electricity from Baynes will conservatively cost 66-166% more than existing local wind and solar alternatives by the time it comes online in 2031. These high costs are likely to drive up the cost of electricity for Namibia’s energy consumers.
