NamPower is a state-owned national utility responsible for electricity generation, transmission and distribution to residual areas and cross-border electricity trading.
NamPower is a minority shareholder of all Regional Electricity Distributors (REDs). For this publication, New Era’s head of business Edgar Brandt interrogated NamPower spokesperson Rosa Nikanor on ongoing activities at the national utility, including the supply and demand, the new 400kv transmission line, as well as the Omburo Solar plant.
The interview session also touched on electricity traders and NamPower’s bursary scheme.
Electricity supply and demand
Q: What are Namibia’s current electricity demand during peak and off-peak times?
A: For the last financial year ending 30 June 2022, the total energy demand was 3 983 GWh. The highest peak time demand (between 07h00-10h00 and 17h00-19h00) was 624 MW. The off-peak demand (between 22h00-05h00 on weekdays and most of the weekends) varies between 330 MW – 580 MW – but on average, 420 MW.
Q: How much domestic demand does NamPower import from neighbouring countries and the Southern African Power Pool?
A: For the last financial year ending 30 June 2022, total imports were 71% of the total energy demand, of which 256 GWh was sourced from the Southern African Power Pool (SAPP), and the remainder from bilateral agreements with ZESCO, ZPC and ESKOM.
Q: What is the current cost of importing electricity, and how is this expected to change in the short- to medium-term?
A: The average cost for the import supply portfolio is ± NAD1.60 per kWh. As some contracts have capacity and energy payments and others are subject to foreign exchange, this is indicative only. Although still dominant in our supply portfolio, most of the contracts expire in the next 3-5 years, whereafter we hope a more domestic generation will be in place to sustainably substitute these imports. It is important to note that we do not intend to stop imports in totality but to play an active role in energy trading within SAPP and the region for the benefit of Namibia.
Q: What is the current level of domestic power generation, and how is this expected to change in the short- to medium-term?
A: One of the biggest energy contributors remains the Ruacana Hydro Power Station with an installed capacity of 347 MW.
From a ministerial determination,
220 MW were allocated to increase the domestic generation portfolio.
Namibia is in process of finalising its National Integrated Resource Plan (NIRP), and NamPower has also embarked on its own Integrated System Plan to inform future project allocations and investment on serving the national demand.
In addition, the active Modified Single Buyer (MSB) market allows for private generation facilities to supply customers up to a threshold of 30% of annual energy requirements. We foresee that the role of solar PV, battery energy storage and wind power will increase due to their attractive lower levelised cost of energy, compared to conventional sources.
Q: What is NamPower’s current financial position, and how is this expected to change in the next financial year?
A: We are finalising the annual financial statements for the 2022 financial year, and results will be released once approved by the board of directors.
Q: What is NamPower’s bulk electricity tariff for the current financial year, and how is this expected to change for the next financial year?
A: For the current financial year, it is N$01.82/kWh. It is most likely to increase above inflation for the next financial year.
Q: What role does NamPower play in Namibia’s electricity supply chain?
A: NamPower currently fulfils major roles in the transmission, generation, distribution (in areas without REDs) and energy trading activities, which includes the role of the Modified Single Buyer (Market and System Operator). In context, NamPower is currently the supplier of last resort.
400kv Transmission line
Q: What progress is being made on the new 400kv transmission line?
A: NamPower is happy to report that the first 28 kilometres of the 287 km total line length are fully completed. Approximately 112 kilometres or 39% of the route has already been strung with the earth-wire and optical fibre ground wire. Overall, construction progress is approximately 64% of the total progress.
Q: How many of the expected 566 transmission towers on the new line have been completed?
A: To date, 378 of the total 566 towers have been erected. A further 103 are fully assembled and ready to be lifted into position. Concrete foundations have been cast for 499 of the 566 towers.
Q: What impact will the new 400kv transmission line have on Namibia’s electricity distribution?
A: The Auas-Gerus 400kV Transmission Line will facilitate better the north-south integration within the NamPower network, enabling NamPower to find more efficient ways to transmit electricity between the north and the south of Namibia.
This opens more opportunities for renewable energy generation to distribute throughout the network. Furthermore, it will enable NamPower to wheel electricity within the Southern African Power Pool (SAPP), since it will also increase the capacity of the interconnectivity between ZESCO in Zambia and ESKOM in South Africa.
Q: How will the new 400kv line impact the availability of electricity for businesses and residences?
A: The single biggest impact would be a significant increase in the security of supply. Once the transmission line is completed, NamPower would be in a much better position to avoid outages associated with emergency events on the current 400kV or 220kV supply lines from South Africa. As the electricity demand continues to grow, the line will also allow for an increased transfer capacity to NamPower’s transmission customers to alleviate challenges currently experienced in ensuring continued electricity supply to enable NamPower to empower the nation and beyond.
In addition, the line is also expected to benefit all Namibians through increased access to data services, as NamPower currently avails its fibre-optic network through its subsidiary, the GridOnline, to licensed telecommunication service providers.
Q: What are some of the major challenges experienced in erecting the new transmission line, and how were these challenges overcome?
A: On the Auas-Gerus Transmission Line, most challenges involved were unexpected cost increases in materials and transport, following the COVID-19 pandemic. The cost of aluminium has skyrocketed through the course of the project. Aluminium is the key component required in the manufacturing of the conductor material, which is the single biggest cost component in the construction of the line. Furthermore, the manufactured conductor, as well as steel components for the towers, had to be shipped – and with the international disruption of shipping lines, the availability of shipping containers also posed a major challenge.
Q: What total investment does the new 400kv line constitute?
A: The total investment in the new Auas-Gerus 400kV Transmission line amounts to over N$900 million. This includes the cost of the line itself, as well as upgrades that were required at the Auas and Gerus substations. These upgrades include the installation of air-core reactors, where NamPower is the first utility in Africa to install this new technology.
Q: Who is the main contractor on the erection of the new 400kv line, and what is their safety record on the project?
A: The main contractor is Power Line Africa, based in Tsumeb. It is a feather in the cap for Namibia that a local contractor has developed the skills to build a transmission line of this voltage level and complexity in the face of international competition.
Power Line Africa maintains an excellent safety record, which is also audited by the NamPower Safety, Health, Environmental and Wellness (SHEW) section. To date, only one serious injury was reported, which is still under investigation.
Omburu Solar Plant
Q: What was the total investment in the Omburu Solar Plant?
A: Approximately N$372 million was invested in the Omburu Solar PV Plant. This amount includes the development costs.
Q: What is the status of the Omburu Solar Plant, and what is the expected daily, monthly and annual power output?
A: The Plant is operational. The expected daily energy is 0.1723 GWH; 5.256 GWH monthly, and 63.072 GWH is the annual power output.
Q: What percentage does Omburu contribute to domestic power generation?
A: Considering the Maximum demand (excluding Scorpion) of 617MW achieved in June 2021 as reported in the annual report, the Omburu 20MW PV Plant will contribute about 3.24% of power demand.
Q: What other renewable energy projects have NamPower embarked upon, and when are these expected to be completed?
A: NamPower has embarked on the following renewable energy generation capital projects at various stages of development:
· 40MW Wind Power Project, expected COD: 2024
· 40MW Biomass Power Project, expected COD: 2025
· 58MW BESS Project, expected COD: 2025
· 20MW PV (Khan) Power Project, expected COD: 2023 – IPP
· 50MW Wind (Luderitz) Power Project, expected COD: 2024 – IPP
Q: Who is responsible for the operation and maintenance of the Omburu Solar Plant?
A: NamPower is operating and maintaining the Plant.
Q: When will NamPower install a battery storage system at Omburu, and what impact will this have on the power grid?
A: The Omburu PV Plant is built battery-energy storage ready. NamPower is currently investigating the option to install the Battery Storage at Omburu and would like to implement lessons learned from the BESS project, which will be installed at the Transmission Omburu Substation (58MW BESS Project).
Q: What is the cost of power from the Omburu Solar Plant, and how does this compare to other sources of power?
A: Due to the funding arrangement of the Omburu PV Project, which was financed from the Long Run Marginal Cost funds, the cost of energy generated at the Omburu PV is about N$0.24/kWh, which is one of the cheapest sources of electricity on the NamPower grid.