Namibia now imports 180 megawatts (MW) from Zambia after NamPower secured additional power supplies from the Zambia Electricity Supply Corporation (ZESCO) as the country moves to bridge the electricity gap, The Brief has established.
NamPower Managing Director Kahenge Haulofu told The Brief that the ZESCO deal, which was concluded in April, will see the country getting additional power imports of 80MW after an initial deal of 100MW was clinched in February 2020. “The 80MW supply agreement is for a period of five years,” said Haulofu.
Namibia now imports a total of 460MW from regional countries in its quest to meet the country’s daily energy demands averaging 500MW. The national power utility currently imports 200MW from South Africa’s Eskom, in a deal that was recently renegotiated and extended for another three years, with 80MW coming in from Zimbabwe Power Company. Haulofu said the contract with Zimbabwe was still valid, and a decision to extend it has not been made yet.
NamPower’s boss was, however, evasive when asked about the cost implications of the company’s three bilateral agreements. “Kindly take note that we are guided by the agreements between NamPower and the contracting parties and such information cannot be shared with third parties,” he said.
Haulofu added that Namibia’s power generation was currently strained due to minimal power coming from the Ruacana Power plant, which is producing an “average 80MW throughout the day, contributing on average 17% of the daily energy demand.”
NamPower is undertaking five power-generation projects and 11 transmission projects aimed at reducing its reliance on imported electricity, the majority of which will be funded through the power utility’s substantial cash and liquid assets.
The company has invested N$1.26 billion towards the construction of the 50MW Anixas II Power Station at Walvis Bay, which is due to be completed in December 2023.
NamPower owns and operates Anixas I and two other power stations, with a combined installed capacity of 459.5MW. These stations are the main sources of local power generation capacity in Namibia.
The power utility has also invested N$50 million in two mobile substations, which it expected to take delivery mid-2022.
The mobile substations will also be used to facilitate an alternative temporary power supply where new installations, maintenance or upgrading must be conducted.
According to Fitch, NamPower’s capital expenditure is set to increase to about N$1.5 billion in FY22 and N$3 billion in FY23 and FY24, from less than N$500 million averaged over the last four years. Namibia’s fifth National Development Plan targets to increase the country’s overall power generation capacity to 750MW.
