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NamPower speaks on uranium, solar and Van Eck

October 29, 2021
NamPower speaks on uranium, solar and Van Eck

Amid increased calls for countries to stop using fossil fuels such as coal for electricity generation, with renewable energy such as solar and wind taking centre stage as alternatives, The Brief (TB) engaged Nampower on these matters, including its future plans for the 49 year-old Van Eck Power Station.Below is an extract of responses from the power utility’s Managing Director, Kahenge Simson Haulofu (KSH).

TB: What is the current generation capacity of NamPower from its power stations?
KSH: NamPower’s generation capacity stands at 459.5 MW. Ruacana Hydro 347 MW, Van Eck Coal 90 MW and Anixas HFO 22.5 MW.
The Van Eck Power Station has an installed capacity of 120 MW; however due the power station’s ageing infrastructure the 4 x 30 MW units are restricted to 25 MW per unit of which only a maximum of two are operated at any given time and the other two on standby.

TB: How much electricity is imported to contribute towards local demand and from which countries?
KSH: NamPower imports electricity from Zimbabwe, Zambia, South Africa and the Southern African Power Pool (SAPP) in order to meet the country’s demand. The contribution of imports varies on an annual basis based on how well the local generation plants perform. On average, NamPower imports between 50% and 60% of its electricity requirement.

TB: What are NamPower’s plans when it comes to the Van Eck Power Station built more than 49 years ago, considering the cost of electricity generation and the cost of keeping it operational going forward?
KSH: The Van Eck Power Station is currently in the process of extending its generation licence for another ten years, meaning that the plant can be operational for another ten years before it is decommissioned - depending on whether other generation capacities are added to the Namibian grid.

TB: How much did NamPower spend on electricity imports last year and how much has been spent half year and how much has been budgeted for this year?
KSH: Kindly refer to our latest NamPower Annual Report which is available online. The figures are published on an annual basis.

TB: What impact have solar plants had on contributing to the national grid and does NamPower see them as the best solution towards addressing the country’s power requirements?
KSH: With an installed capacity of 130MW, renewable energy through Independent Power Producers (IPPs) contributed about 9% of the total electricity during the financial year 2020/2021.NamPower does not believe that energy from solar alone is the best solution towards addressing the country’s power requirements, but that a mixed supply from different renewable sources will have a bigger impact on addressing the country’s electricity requirements.

TB: Solar generated power has been found to be more expensive than that generated by existing power plans and imports. What impact does that have on pricing and cost for NamPower and how sustainable is it to buy the power from the solar plants going forward?
KSH: This is not entirely correct. Based on the size of a plant and procurement methods used, the price of each supplier differs. There are solar plants that are cheaper than imports and cheaper than NamPower’s thermal plants.
• The impact of solar plants on the cost and pricing is proportional or rather correlates with their total energy contribution of about 9%.
• NamPower is currently in the process of setting up its own 20 MW solar plant. Looking at “Solar to electricity” in terms of innovation and evolving technology, we are of the opinion that solar plants are sustainable to a limited extent due to their nature as they are not available 24/7.

TB: Is NamPower considering the use of uranium power plants locally, considering the abundant uranium deposits and lower product costs of such plants?
KSH: Currently there are no approved plans for a uranium power plant, however the Ministry of Mines and Energy is in the process of reviewing the National Integrated Resource Plan (NIRP) and will look at possible supply options preferably supply sources that require local fuel. In addition, NamPower is also in the process of reviewing its own Integrated Resource Plan (IRP) which will also explore potential supply options.

TB: Finally, is NamPower still part of the Kudu gas project?
KSH: Yes, NamPower as a government entity, offers support on developments on Kudu where its required.

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Last modified on Monday, 01 November 2021 12:23
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