The ministry of mines and energy (MME) has explained Namibia’s electricity imports dilemma which has seen the country importing 50-70% of its electricity annually.
Executive Director in the ministry, Simeon Negumbo speaking on behalf of mines and energy minister, Tom Alweendo at the inauguration of Osona Village’s electricity upgrade from 1 MVA to 2 MVA highlighted that this is not a tenable situation because some of this electricity is imported from systems that are themselves constrained.
“The Ministry of Mines and Energy, in conjunction with the Electricity Control Board (ECB) and NamPower, is responsible for closing this import gap but must do so in the least costly manner. This is done primarily through what we call the National Integrated Resource Plan (NIRP 2022).
“Maintaining this balance between self-reliance and affordability is a dilemma. i.e., we’ve always wanted to be self-reliant. But building generation plants in Namibia was historically costlier than importing, especially given our lack of proven commercial hydrocarbon resources. Building such plants, for which we will have to import the resource anyways, would make end-use electricity less affordable, which comes with its socio-economic implications,” he explained adding that over the past few years, this trend has been changing.
“Generating power from solar and wind, two resources that Namibia is generously endowed with, is now cheaper than hydro, coal, oil and gas-powered generators. And we have, as a country, taken full advantage of this.
“To date, about 30% of our electricity comes from renewable sources, mainly solar. But as you know, solar and wind are only sometimes available. And we are already reaching levels of solar and wind penetration that could cause instability on our national grid,” added Negumbo.
The investment and effort poured into this infrastructure will be wasted if upstream generation planning, sound regulation and transmission backbone infrastructure investments are not made.
The latest NIRP, which was recently approved by Cabinet, is designed with that balance in mind, Negumbo stated before saying that Namibia must take advantage of its abundant solar and wind resource.
However, the plan is cognizant that Namibia must invest in transmission infrastructure and battery storage technology to take advantage of renewable energy resources fully.
Currently, Namibia imports most of its electricity from South Africa and other countries in the region. A special arrangement between NamPower and Eskom, the South African Power utility, enables Namibia to buy and utilise the surplus energy from SA at affordable rates.
NamPower, the government-owned power utility, operates generation facilities including the Ruacana Hydroelectric Power Station (330MW capacity), the Van Eck Power Station (coal; 120 MW capacity), the Paratus Power Station (diesel; 24 MW capacity), the ANIXAS Power Station (diesel; 22.5 MW capacity); and – the Ombuvu PV Power Station (solar; 20MW, inaugurated in June 2022). The generation facilities rarely if ever produce at full capacity. Peak demand is over 600 MW.
“The infrastructure we are inaugurating today will enable the Osona village to improve reliability, reduce network constraints, minimise unplanned interruptions, and allow for the expansion of the network to cater for future developments within Osona, of which I am told 500 houses are already under construction and are due to be completed within six months. Additionally, the upgrade will attract further investment and stimulate economic growth through job creation.
“That is why, ladies and gentlemen, this development is so necessary. Without it, the prospects of growth for you as individuals, your businesses and the community are greatly hampered. Because in our modern age, electricity is a crucial enabler for economic growth and social development,” Negumbo said.
Currently, the provision of electricity to Osona Village has cost the developer, Preferred Land Development Holdings, over N$11m, which includes bulk infrastructure, households, streetlights, businesses, and public amenities. The existing infrastructure will eventually be transferred to Okahandja Municipality at no cost.
“The completion of this project will bring much-needed social benefits that can be harnessed into tangible economic activities. Although it is hard to imagine growth and development without electricity, the presence of a secure electricity supply is no guarantee of it. It will be up to your individual choices if this project will realise the much-needed economic development,” remarked Negumbo.