NamPower plans to invest about N$19.8 billion on electricity generation and transmission expansion in the next five years.
The national power utility Managing Director, Simson Haulofu, said N$9.9 billion will be used on generation projects, N$6.5 billion on transmission lines, while other capital projects will account for N$3.3 billion.
“NamPower is in a sound financial position and boasts a cash reserve of N$10.3 billion, plus an additional N$5 billion debt under consideration by KfW, AfD and World Bank. Thus, our worry is on the funding gap of around N$3.5 billion, which we shall approach new investors,” he said.
“We also received a grant of N$755 million. So this compounds the total funds needed to be spent on these projects from 2024-2029. And this is possible because of our profitability and strong balance sheet,” he said in Cape Town, South Africa where he attended the Mining Indaba.
On generation, Haulofu said NamPower is undertaking a combined 318MW projects in the short term. In the medium term (2-5 years) 455MW projects are lined up.
These are 40MW biomass to be undertaken in quarter 1 of 2027, a 45MW (two hour) BESS will also be commissioned during that period.
Whereas in the fourth quarter, a 100MW BESS, 120MW solar PV (phase I) and 150MW Solar PV phase II will also be initiated.
“As a long term beyond five years, we further plan to construct a 100MW BESS, 250MW liquefied natural gas or green hydrogen through Independent Power Producer, 300MW mega wind, as well as 430MW Baynes Hydro Power Plant. These projects will produce a combined 1,080MW. Hence our aim is to become 80% self-sufficient by 2028 and also reach 70% renewable energy by 2030, thus solidifying our security of supply,” he said.
“We also do not just generate without evacuation, thus under the Transmission front. So far, we have completed 400kv Kunene-Omatando as well as 400kv Auas-Gerus. We have ongoing projects of a 400kv Obib-Oranjemund interconnector with South Africa, as well as the 400kv Auas-Kokerboom.”
Other transmission projects lined up are 400kv Kunene-Cahama interconnector to Angola, 400kv Omatando-Otjikoto, 400kv Namib-Obib, 220kv Otjikoto-Masivi, 400kv Kunene Bynes, including the 330kv Zambezi-Sesheke interconnector to Zambia.
“We are making good progress towards implementing these projects, hopefully, if all goes as planned. In addition, we are negotiating with Angola including South Africa as we work on interconnectors to open up our transmissions into the regional pool,” he said.
“Therefore, NamPower will continue to engage and embrace the changing energy environment. We know many things are happening in the energy environment, especially the new technologies and renewable energy to be specific, be it wind or solar, which we are fortunate to have in abundance. That is why we should ensure that we are well on track and provide such services, while also looking at making a footprint in the region. We need to leverage from this endowment. “We know that some things are not really cheap, as they seem to be, hence we need support. We also know the positions of mining houses. They have got also their target on renewable energies, especially on the carbon emissions, hence our mission is to meet their demand and be able to supply at any given time,” Haulofu added
