Boost for Namibia’s energy infrastructure

President Nangolo Mbumba last week inaugurated the state-of-the-art N$1.28 billion 54MW Anixas II Power Station in Walvis Bay on Wednesday, which is set to significantly boost Namibia’s power generation capacity.NamPower MD Kahenge Haulofu on Wednesday explained that although NamPower is making significant investments in renewable energy projects such as solar, biomass, battery energy storage, and the development of future wind projects, there is still a tremendous need for firm and dispatchable power on the grid.“While technologies such as solar or wind will help alleviate some of Namibia’s future energy requirements, they cannot fulfil the dispatchable capacity requirements of the national grid," Haulofu explained.The purpose of the 54 MW Anixas II Power Station, in addition to the existing 22.5 MW Anixas Power Station, is to provide reliable generation capacity to the Namibian grid, thereby improving security of supply and self-sufficiency, he noted.He added that Anixas II will also support the Southern African Power Pool (SAPP) members’ ten-minute operating reserve requirements.“This means that it can respond in a short timeframe to support the SAPP network and allows Namibia to integrate more renewable energy projects in the future by serving as a dispatchable power station to support the grid and energy requirements in light of the intermittency of renewable energy facilities.”Additionally, Anixas II is built as a dual-fuel power station, ready to receive natural gas once it becomes available in Namibia at a competitive price.“This will allow for greater risk mitigation in terms of fuel diversification, higher capacity factors, reduction in emissions, and further reduction of system losses during peak times,” Haulofu explained.The engineering, procurement and construction (EPC) contract for the power station commenced in May 2022.Construction, testing and commissioning of the power station were completed in September 2024, with final handover from the EPC contractor on 20 November 2024. The EPC contract amount initially stood at N$1.259 billion but was later reduced to N$1.252 billion.During construction, more than 390 temporary jobs were created, with all semi-skilled and unskilled labour sourced from the Namibian workforce. To date, approximately 18% of the EPC contract value (excluding forex hedging costs), amounting to N$183 million, has been spent on majority-owned Namibian companies.Risk exposureMines and energy minister Tom Alweendo last week said that for too long, Namibia has depended on imported electricity to meet the needs of its people and industries.“This reliance has exposed us to risks beyond our control, such as price fluctuations, supply disruptions and constraints that hinder national development. Energy security is not just an economic necessity – it is a matter of national sovereignty. With this new addition, we take another step toward reducing our dependency and securing a future where Namibia generates more of its own electricity, ensuring stability, predictability and affordability for our citizens," Alweendo said.Cost-effective strategies He also emphasised that energy security is not enough.“Electricity must also be affordable for the average Namibian household and business. As we expand our generation capacity, we must remain committed to cost efficiency. Our energy policies must strike a balance between investment and affordability, ensuring that no Namibian is left in the dark due to prohibitive costs. Affordable electricity fuels economic activity, empowers small businesses, and improves the quality of life for all citizens," the minister said.Meanwhile, president Nangolo Mbumba echoed these sentiments, stressing the importance of expanding Namibia’s renewable energy resources and positioning the country as an electricity exporter to the region.“There is a need for a diversified energy mix – one that balances local generation with strategic imports – to ensure that Namibia remains resilient to global and regional energy shocks,” the president said. “However, self-sufficiency should not come at the cost of affordability. Electricity should serve as an enabler of socio-economic growth, not a hindrance to further investment and development. We must explore innovative solutions to make electricity accessible to communities who cannot afford it, whether through exports, cross-subsidisation, or new technologies," he added.

Boost for Namibia’s energy infrastructure

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Namibian Sun 2025-03-10

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Boost for Namibia’s energy infrastructure

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Namibian Sun 2025-03-10

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