NamPower commits N$16 billion on sun, wind

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NamPower commits N$16 billion on sun, wind

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…targets 80% local power generation by 2030

 

STAFF REPORTER 

The Namibia Power Corporation (NamPower) is ramping up efforts to reduce the country’s reliance on electricity imports by targeting 80% local power generation by 2028. 

This ambitious goal is backed by a broader strategy to ensure that at least 70% of Namibia’s electricity comes from renewable sources by 2030.

Over N$16 billion has already been committed to make this dream a reality. 

In an exclusive interview with Namibia Business Review in July, NamPower managing director Kahenge Haulofu said the drive towards energy independence is anchored in NamPower’s Integrated Strategic Business Plan.

“NamPower is developing several projects as part of its Integrated Strategic Business Plan, aligned with national objectives to source at least 70% of energy from renewable energy sources by 2030 and achieve 80% energy self-sufficiency by 2028,” Haulofu said.

 

MAJOR GENERATION PROJECTS UNDERWAY

 

Among the new initiatives is the 51 MW/51 MWh Omburu Battery Energy Storage System (BESS) currently under construction.  Shandong Electrical Engineering & Equipment Group Co., Ltd and Zhejiang Narada Power Source Co., Ltd are implementing the project as a joint venture. It is expected to be commissioned in the final quarter of 2025. 

The battery system is designed to improve grid stability and allow for better integration of intermittent renewable energy.

“The project will enable NamPower to cost-effectively manage the energy demand and supply by performing energy arbitrage and supplying emergency energy. It will also provide various grid stability services, enabling the grid to integrate additional intermittent renewable energy generation capacities, while ensuring security of supply,” said Haulofu.

 

Another project is the 40 MW Otjikoto Biomass Power Plant, for which ground was broken in November 2024. Construction is now underway after NamPower signed an engineering, procurement and construction contract with Dongfang Electric International Corporation. NamPower also secured agreements with four suppliers to provide a combined 180 000 tonnes of wood chips annually to power the plant. 

“Completion is scheduled for the second quarter of 2027,” said Haulofu. 

 

NamPower is also progressing on the 100 MW Sores |Gaib Solar Photovoltaic Plant. Originally planned as a 70 MW project, the plant was expanded following a ministerial determination. Construction began on 19 June 2025 and is being handled by a joint venture between China Jiangxi International Economic and Technical Cooperation Co., Ltd and China New Energy Development (Zhejiang) Co., Ltd. The plant is expected to come online by the second quarter of 2026.

 

“Following a recent ministerial determination, NamPower is finalising bids to develop new Independent Power Producer projects totalling 120 MW. This initiative will comprise six 20 MW projects strategically distributed across pre-identified regions in Namibia,” said Haulofu. 

 

EXPANDING THE TRANSMISSION NETWORK

 

Haulofu said to accommodate growing generation capacity, NamPower is also investing in transmission infrastructure. NamPower’s Transmission Master Plan for 2021 to 2025 outlines plans for new lines, upgraded substations and the modernisation of existing infrastructure.

 

One of the major projects is the 400 kV Auas-Kokerboom Transmission Line, estimated to cost approximately N$2 billion. The line is intended to increase electricity transfer capacity between Namibia’s northern and southern regions. A component of the project, the 400 kV Auas-Gerus line, was completed in April 2024. The main transmission line is expected to commence construction once the tender process concludes later in 2025.

 

Another key development is the 400kV Obib-Oranjemund Transmission line, which will serve as NamPower’s second interconnector with South Africa’s Eskom. The N$1.2 billion project includes a 92-kilometre stretch from Rosh Pinah to the Orange River, which was completed in May 2025. Full commissioning is expected by May 2026.

 

Additional upgrades include the N$320 million 132/66 kV Sekelduin substation near Swakopmund, which is due for commissioning by the end of August 2025. In Windhoek’s Otjomuise area, NamPower is constructing the 220/66 kV Khomas substation at a cost of N$340 million. That project began in January 2025 and is scheduled for completion in December 2026.

 

BILLIONS COMMITTED TO ENERGY DEVELOPMENT

 

Over the past five years, NamPower has spent more than N$1.5 billion on generation projects, including the 20 MW Omburu PV Solar Plant (N$317 million) and the 54 MW Anixas II Power Station (N$1.259 billion), which became fully operational in November 2024.

 

Looking ahead, NamPower plans to invest about N$7 billion in additional generation projects and N$9 billion in transmission infrastructure over the next five years. Among the headline items are the Otjikoto Biomass Plant (N$2.64 billion), the Sores |Gaib Solar PV Plant (N$1.6 billion), as well as planned developments, such as the 45 MW/90 MWh Lithops Battery Energy Storage System and an 80 MW solar plant at Omburu.

“Namibia’s longer-term vision is to reduce electricity imports by at least 70% by the year 2040. The large-scale projects, such as the 880 MW Bi-national Hydroelectric Power Project, the 420 MW Kudu Gas-to-Power Project, and a 300 MW wind energy development, would be central to achieving that goal,” said Haulofu.

 

REGIONAL INTEGRATION AND TRAINING EFFORTS

 

NamPower continues to engage in regional cooperation through its membership in the Southern African Power Pool, which facilitates power trading among southern African nations. Namibia’s geographic location enables strategic connections with South Africa, Zambia, and potentially Angola, enhancing both import and export options.

 

On the human capital side, Haulofu highlighted NamPower’s focus on skills development. 

In 2024, Haulofu said 75% of employees underwent training, exceeding the utility’s annual targets. 

“NamPower also funds the education of more than 150 students through its bursary programme, which focuses on electrical and renewable energy engineering. Furthermore, at least 45 vocational trainees are sponsored annually at the NamPower Vocational Training Centre,” he said. 

While the outlook is positive, Haulofu acknowledged ongoing challenges, particularly the lack of dispatchable generation capacity and the seasonal variability of the Ruacana Hydropower Station. He said these issues often force Namibia to rely on expensive power imports, especially during drought periods. In addition, Haulofu noted that transmission capacity constraints in certain regions pose operational risks during scheduled maintenance periods.

“Nonetheless, with strong political and government backing, NamPower says it remains confident in its ability to execute its strategic goals and support regional electricity needs across the Southern African Development Community bloc,” he said.

www.namibiabusinessreview.com



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