The Electricity Control Board (ECB) says Namibia is expected to add 93 megawatts (MW) of new electricity generation capacity online in the 2025/2026 financial period, significantly reducing its dependence on imported power.
The new capacity will primarily be sourced from renewable energy, introduced through the Modified Single Buyer (MSB) model.
“There are currently seven solar PV plants with a combined 28MW operating under the MSB model. The additional 93MW to come online next year will significantly reduce reliance on imports,” said ECB Chief Executive Officer (CEO) Robert Kahimise.
The ECB has issued 79 electricity generation licenses to date, excluding standby generators. Of these, 41 are operational and 38 remain under development.
Kahimise said two new plants, the Anixas II (58MW, heavy fuel oil) and Khan Solar PV (20MW) were added to the grid in the 2024/2025 period to strengthen domestic capacity.
“These plants are among the licensed projects expected to improve local generation and reduce electricity costs in the long term,” Kahimise stated.
For the 2025/2026 period, Namibia anticipates that 53% of national electricity demand will be met through local generation, with the remaining 47% supplied via regional imports.
The CEO noted that the Ruacana Hydropower Plant remains the country’s main generation asset, though its performance is dependent on the water levels of the Kunene River. Hydropower from Ruacana is relatively cost-effective compared to other sources.
“Less generation at Ruacana typically results in increased imports or the use of more expensive domestic alternatives,” Kahimise warned.
During the 2023/2024 financial period, Ruacana achieved one of its best production years in recent history, generating 2,067 gigawatt-hours (GWh) due to favourable water management and river flow conditions.
“Ruacana’s performance last year was one of the best in recent memory, helping to stabilise the cost of electricity,” said Kahimise.
To accelerate progress, the ECB called on remaining license holders to commission their projects without further delay, emphasising the impact on national energy prices.
“We hope that licensees who have not yet commissioned their plants will do so soon; this will positively impact end-consumer electricity prices,” Kahimise said.
The MSB model, unique to Namibia, allows private generators and eligible customers to transact electricity directly. It is seen as a cornerstone in creating a competitive and diversified electricity market.
