HomeIndustry SectorsGenerationNamibia puts in short term plans prior to Kudu in 2018

Namibia puts in short term plans prior to Kudu in 2018

19 July 2013 – As per Namibia’s energy policy plan whereby the large sparsely populated southern African country aims to generate 75% of its power requirement domestically, it is taking steps to bolster its supply of power in the short term until 2018, when the 800 MW Kudu gas to power project is expected to be functional. These short term critical solutions (STCS) which have been put in place include two wind farms totalling 114 MW and three solar plants.

Another power project planned as a long term solution is the 600 MW Baynes project with Angola, expected to be completed by 2022. In fact at a recent conference held in Midrand, Gauteng, South Africa, to promote investment in Namibia, the commercial counsellor at the high commissioner of Namibia’s commercial office, Bonaventura Hinda, said national utility NamPower was working to put the country in a position to produce power in surplus, and export this power.

Namibia generates about 39% of its own electricity, with 40% of its power coming from South Africa’s Eskom, while the Zambia Electricity Supply Corporation (Zesco) and Zimbabwe Electricity Supply Authority (Zesa) contribute 9% and 12%, respectively, to the country’s grid.

NamPower’s power purchase agreement (PPA) with Zesa expires in October 2013, but has been extended for another year, while negotiations with Zesco are under way for an additional 100 MW of supply.

As part of Namibia’s STCS, in March 2013 NamPower signed a power purchase agreement (PPA) with Aggreko for the supply of 90 MW of mid-merit power from Aggreko’s Ressano Garcia gas-fired facility in Mozambique. This power is being supplied from June 1st 2013, until August 2015, with an option of further extension subject to the availability of gas.

Namibia currently has four power stations, including one coal-fired power plant, with a collective capacity of about 500 MW. According to the recently commissioned National Integrated Resource Plan the country will require investments of at least US$170 billion in its energy sector over the next 15 years.