BW Kudu’s plans to build a 400-kilovolt electricity transmission line for its proposed 420-megawatt gas-to-power plant near Lüderitz remain uncertain after the government reiterated its opposition to private control of Namibia’s electricity transmission and distribution infrastructure.
Minister of Industries, Mines and Energy Modestus Amutse told the National Assembly that the government would not privatise the national electricity network, arguing that transmission and distribution infrastructure must remain under state control because of its importance to national security and electricity pricing.
The position casts further uncertainty over BW Kudu’s pending application to construct and operate a transmission line connecting its proposed power plant to NamPower’s Obib substation, which would enable electricity supply to customers in Namibia and South Africa.
“We are not going to privatise as I have said and as you have probably read, honourable member, in the media, because we regard electricity as a national security asset,” Amutse said.
He warned that transferring control of electricity infrastructure to private operators could expose consumers to higher tariffs and limit the government’s ability to determine how transmission and distribution networks are developed.
“If it’s entirely in the hands of the private players, one can already make out how expensive electricity can become and also become uncontrollable when it comes to deciding on the routes of distribution,” he said.
Amutse said the government also needed to ensure that electricity transmission capacity was aligned with generation to maintain an efficient and coordinated national power network.
“The carriage capacity have to be aligned with the production of energy,” he said.
BW Kudu’s transmission licence application has been pending since NamPower objected to the proposed private investment after the Electricity Control Board (ECB) advertised the application in May 2024.
The objection led to a public hearing at which NamPower and BW Kudu presented their respective positions on private participation in electricity transmission.
Despite the objection, ECB Chief Executive Officer Robert Kahimise previously said the regulator had recommended to the minister that BW Kudu’s proposed transmission investment was justified.
However, Amutse directed that the application remain pending until a regulatory framework governing private participation in electricity transmission had been established.
The ECB subsequently initiated the development of an Independent Transmission Company (ITC) regulatory framework and issued a request for proposals for consultancy services in August 2026.
The proposed framework is expected to determine the conditions under which private investors may finance, construct and operate transmission infrastructure, including arrangements for connecting privately developed power lines to NamPower’s existing grid.
Amutse maintained that NamPower should continue carrying out its transmission responsibilities under the legislation establishing the utility, while the ECB remained responsible for regulating the sector.
“As far as government is concerned, ECB is a regulator. They can look at different forms of regulating,” he said.
He acknowledged that discussions between the government and the ECB were continuing over how private participation in electricity generation and supply could be accommodated without compromising the government’s position on public control of the network.
“Where we cannot meet each other in terms of agreeing to terms, we have to come together and that is where we are now, just to iron out what we definitely have to do together so that we don’t dilute the government position,” Amutse said.
The regulatory uncertainty comes as independent power producers pursue large electricity generation projects requiring substantial transmission infrastructure to connect to the national grid.
Kahimise has previously indicated that the BW Kudu application could help shape the regulatory treatment of future privately financed transmission projects.
For BW Kudu, the unresolved application leaves questions over whether the company will be permitted to develop its own transmission infrastructure or be required to pursue alternative arrangements involving NamPower.
However, the government has not explicitly rejected BW Kudu’s application, and it remains unclear whether its opposition to privatisation extends to privately financed transmission infrastructure developed under a regulated framework.
