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NamPower to pour USD 575 mn in transmission projects

Friday, 29 May 2020
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Namibia’s power utility NamPower is set to infuse USD 575 million in power generation and transmission projects over the next three years. The investment will boost the provision of affordable and reliable domestic power generation and improve the balance of payments.

NamPower is rolling out investment in energy generation and transmission, particularly solar and wind power generation over the next five years, with investment of about NAD 10 billion over the next three years.

The power sector in Namibia has undertaken several reforms such as horizontal consolidation of more than 70 distributors into five regional electricity distribution companies (REDs) and establishment of transparent tariff setting procedures, all overseen by the sector regulator, the Electricity Control Board (ECB).

While the country’s generation mix is comprised primarily of hydropower, the majority of electricity is imported (about 60 percent of the total electrical energy requirement) primarily through bilateral contracts from South Africa’s Eskom and to a lesser extent, the Southern Africa Power Pool (SAPP).

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 South Africa at affordable rates.

 
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