RDJ Briefing - January 2020

Page 13

JANUARY, 2020

13

ELECTRICITY Namibia Electricity Update and its Link to South Africa

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amibia imports up to 70% of its electricity from South Africa (Eskom), and other countries within the region, such as Zimbabwe (ZPC). With this, the

633MW

country also has a special agreement made between NamPower and Eskom in South Africa. The Power Purchasing Agreement (PPA) for five years signed between Namibia and South Africa, is ending in March 2022. The South African Power utility enables Namibia to buy and utilise the surplus energy from SA at affordable rates. However, South Africa has been hit by an energy crisis which has made it unable to meet the growing demand. This crisis is inevitably expected to spill over to Namibia. As of February 2019, Ruacana, Anixas, ZESCO, ZPC and other Renewable Energy plants contributed a total of 250MW, 22.5MW, 50MW, 80MW and 117MW of energy to Namibia respectively, while Eskom supplied about 200MW. Namibia’s total electricity demand is currently estimated at 633MW per annum, and this demand is expected to grow at about 5% per annum. The country’s generation capacity currently stands at approximately 589MW of which about 460MW is base/mid-merit, thereby rendering a deficit in local production. Erongored says Namibia will have to look at alternative sources and start standing on its own feet. Although Namibia doesn’t entirely depend on Eskom for power, there is still a deficit that needs to be accounted for.

Total Energy Demand excluding Skorpion

589 MW Local Generation incl. RE Plants

460MW NamPower Fleet

400MW Supply Agreements

options Namibia could direct its focus on is the Kudu Gasto-Power Project, Epupa Baynes, other renewables and also encourage more Independent Power Producers IPPs. Readings: https://www.erongored.com/electricity-in-namibia/ https://neweralive.na/posts/calm-down-nampower-tells-nationover-eskom-crisis https://www.doingbusinessnamibia.com/energy

www.rdjconsulting.co.za


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