The Namibia Power Corporation (NamPower) plans to invest over N$15.6 billion in energy infrastructure over the next five years, as part of efforts to ensure a stable and sustainable electricity supply in the country.
The planned capital expenditure will be allocated to key projects, with N$6.8 billion earmarked for generation, N$7.5 billion for transmission, and N$1.4 billion for other capital projects.
NamPower Chief Financial Officer Michael Gotore revealed that several major projects are already underway, including three Independent Power Producer (IPP) projects.
“We are currently implementing several key projects in line with NamPower’s ISBP 2020 to 2025 and the 2018 Ministerial Determination. These projects are at various stages of development, including the expansion of our 20-megawatt Omburu PV project, which will add an additional 80 megawatts by 2027,” Gotore said.
He highlighted progress on a 20-megawatt solar PV project, a 44-megawatt wind project, and a 50-megawatt wind project, all of which are expected to come online in the coming years.
Additionally, a 100-megawatt solar PV project at Rosh Pina is set for completion by mid-2026, while a 40-megawatt biomass project is slated for mid-2027.
NamPower is also advancing energy storage capabilities, with a 50-megawatt battery energy storage system at Omburu expected to be operational by the end of the year.
In transmission expansion, Gotore noted the importance of strengthening the national grid to support growing demand.
“These initiatives include the completion of the 400 kV Carus transmission line in 2024 and the planned completion of the 400 kV Obiboranyamun transmission line in early 2026,” he said.
He acknowledged the crucial role of regional power partners, including Eskom (South Africa), Zesco (Zambia), and Zimbabwe Power Company (ZPC), in supplementing Namibia’s electricity needs. “We continue to engage with these utilities to modify and extend contracts in order to meet the gaps until we achieve self-sufficiency,” Gotore stated.
NamPower’s Senior Manager for Electricity Pricing and Financial Modeling, Christo Visser, outlined the financial impact of key cost drivers on the company’s energy portfolio. He emphasized that once the Electricity Control Board (ECB) approves the tariff application, the tariff is fixed for the year, with any over- or under-recoveries carried over to future applications.
Visser pointed to the Ruacana Hydroelectric plant as a significant cost factor, explaining that a 100 GWh change in output could result in a N$200 million financial impact, equating to a 2.2% price adjustment.
The rising cost of imported electricity was another concern, with Eskom implementing a 12.7% increase and Zesco raising prices by 2.4%, compounded by exchange rate fluctuations. “The exchange rate has a significant impact on our import contracts,” Visser noted.
He also discussed the impact of rising Independent Power Producer (IPP) tariffs, driven by Namibia’s 4.1% inflation rate, and increasing transmission costs due to escalating commodity prices and expensive funding. “Funding costs are becoming more expensive, adding strain to the transmission sector,” he said.
Despite economic pressures, Visser reaffirmed NamPower’s commitment to avoiding load shedding. “Load shedding has a detrimental impact on the economy, and NamPower prioritizes supplying energy at all costs to avoid this negative impact,” he said.
NamPower’s ambitious investment plan is expected to enhance Namibia’s energy security, expand renewable energy capacity, and reduce dependence on electricity imports over the coming years.-miningandenergy.com.na
