Namibia Power Corporation (NamPower) says it will not be able to integrate additional wind-generated electricity beyond the 100 megawatts (MW) expected to come online within the next five years due to an estimated N$2 billion cost of constructing a new transmission line.
NamPower’s Senior Manager for Electricity Pricing and Financial Modelling, Christo Visser, said the existing transmission line will reach full capacity once the new wind projects are integrated.
“Yes, there are two independent power producers with nearly 100 megawatts of wind energy expected to come online within the next five years. However, the challenge is that once this capacity is added, the transmission line will be fully utilised,” he said at a recent engagement.
According to Visser, increasing wind energy capacity beyond the planned projects would require significant investment in transmission infrastructure.
“If we want to integrate even more wind energy, we would need to construct an additional transmission line at an estimated cost of around N$2 billion. This adds another financial burden,” he said.
Visser noted that NamPower carefully assesses energy resources while ensuring a stable power supply.
“It’s a combination of various factors. We consider the available resources carefully and rely heavily on renewable energy. However, we also need backup power. On days with significant cloud cover, solar output can be reduced by up to 50%, depending on the extent of the cloud cover. In such cases, we must source energy from other means,” he explained.
He emphasized that the decision is based on economic and operational constraints, not profit motives.
“This isn’t about NamPower making a profit; it’s the reality on the ground. We could explore subsidies, such as tax incentives, to offset costs, but the fact remains that everything has become more expensive. Ensuring a reliable 24/7 electricity supply comes at a cost,” he said.
Visser said despite the challenges, NamPower remains committed to energy security and affordability while balancing the integration of renewable energy into Namibia’s electricity grid.
In 2022, NamPower secured a N$1.1 billion loan from Germany to fund Namibia’s first major wind farm, a 40MW facility located 30km north of Rosh Pinah. The loan, disbursed through the KfW Development Bank, is part of a N$2.7 billion Financial Cooperation Agreement between Germany and Namibia, signed by Finance Minister Iipumbu Shiimi.
In 2023, NamPower signed a Power Purchase and Transmission Connection Agreement with CERIM Lüderitz Energy for the 50MW Lüderitz Wind Power Plant, which will be developed on a Build-Own-Operate basis.
The N$1.4 billion project, located 16km south of Lüderitz, will see CERIM finance, construct, operate, and maintain the facility, while NamPower will serve as the exclusive off-taker of the generated electricity under a 25-year Power Purchase Agreement (PPA).
“This project will contribute significantly to our supply portfolio when combined with other generation projects that form part of the Integrated Strategic Business Plan (ISBP). Considering the power supply situation in the Southern African Power Pool, the commissioning of this project come July 2025 will displace 50MW of imports, which is a step in the right direction,” said NamPower Managing Director Simson Kahenge Haulofu.
The 50MW Lüderitz Wind IPP Power Project forms part of NamPower’s planned generation projects under its Integrated Strategy and Business Plan (2020-2025).
