Namibia’s installed power generation capacity of 498.5 MW – comprising 60% hydro and 40% thermal – is not enough to supply the country’s demand of over 500 MW, which continues to grow at 3.5% a year, power utility NamPower MD Paulinus Shilamba tells Engineering News.

He explains that the installed capacity is not always fully available as the utility’s power stations are affected by various factors, including the fact that its Ruacana hydropower plant is dependent on the run of the river. The coal- and diesel-powered stations do not operate round the clock and are only called upon when needed owing to their high operating costs. In the absence of a baseload power station, the utility imports on average over 50% of its energy from trading partners in the region.

To tackle the power supply deficit, NamPower initiated the Short Term Critical Supply (STCS) project in 2012, under which several short- and medium-term initiatives will be implemented.

The implementation of demand-side management, which includes continuously educating and informing the public on how to use electricity wisely, advocating ‘time of use’ tariffs to large customers, as well as demand market participation and energy efficiency measures form part of the STCS project and most of these initiatives are already being implemented.

Other initiatives include the rehabilitation of the Van Eck coal-fired power station, replacing the turbine runners of the three old units at the Ruacana hydropower station and replacing all four old machines at the diesel-powered Paratus power station, in Walvis Bay.

Further, the utility continues to negotiate new power purchase agreements with neighbouring countries, while renegotiating existing ones. Such agreements are important, as Namibia will continue to rely on imports for the next four to five years while it works on its own generation projects.

NamPower is also engaging independent power producers (IPPs) for the offtake of power from renewable-energy projects in the form of wind, solar photovoltaic and biomass.

According to Shilamba, renewables remain a challenge. “The renewable potential in Namibia is very high but the technology is very expensive. Solar, for example, cannot supply baseload power because large-scale storage is not possible. Concentrated photovoltaic technology cannot store the kind of bulk that we need. This means that renewable energy, both wind and solar, must be complementary to the main grid.”

Shilamba says negotiations are at an advanced stage with two companies, both joint ventures with international partners, for solar and wind power plants.

The Namibian government has set up a National Steering Committee on Renewable Energy Procurement, which is looking at building solar plants through IPP involvement, with a total of 30 MW being solicited. Tenders will be awarded to IPPs by the middle of 2013, with the first commercial solar plant to be implemented immediately thereafter.

“We have already been approached by six international firms, some of which already have licences from the Electricity Control Board. The tender process has begun and the first award will be made by the end of 2013 at the latest,” says Shilamba.

The challenge, however, remains keeping Namibia powered until these short-term projects start feeding into the grid.

Despite the supply challenge, the utility has achieved notable success in the past three years with the commissioning of a number of projects since 2010. The Caprivi Link interconnector project, which involved a 951 km 350 kV high-voltage direct current line and converter stations linking the far north-east with central Namibia, was commissioned in November 2010. The Caprivi Link provides a north–south interconnector within the Southern African Power Pool, which forms part of the vision to interconnect the region and will add to the energy trading potential within the region.

Another milestone is the West Coast Development Project along Namibia’s central west coast, which involved extensive transmission infrastructure development owing to strong economic development in the Erongo region. The 220 kV transmission backbone was reinforced to service new mining activities, and more 220 kV lines and substation extensions are being planned to further reinforce supply to all areas.

The 22.5 MW ANIXAS diesel-powered station, in Walvis Bay, was commissioned in November 2011. The station is an emer- gency standby facility.

The Ruacana Fourth Unit Project was commissioned in May 2012 and involved the installation of a new 104 MVA unit at the Ruacana hydropower station, bringing the station’s installed capacity to 332 MW. The Ruacana hydropower station is Namibia’s main source of power and can contribute over 60% of total power supply, depending on the run of the river.

The Tsumkwe renewable-energy project, a partnership between the European Union, the Desert Research Foundation of Namibia, the Otjozondjupa Regional Council and NamPower, is one of the largest 200 kW solar diesel hybrid systems in Africa. It was com- missioned at Tsumkwe in January 2012.

However, more work still needs to be done, of which the introduction of a baseload power station is central. The Kudu gas project, off the southern coast, remains a strategic investment for Namibia to ensure security of supply for the country.

Meanwhile, NamPower is engaging upstream parties with regard to the conclusion of a project development agreement and regional power offtakers for the sale of surplus electricity from the 800 MW Kudu power station.

NamPower is confident that the investment decision will be made by December this year, with commissioning of the power station by 2017/18, making Namibia a net exporter of electricity to the Southern African Development Community region.

Other “key deliverables” for 2013 are the implementation of a transmission master plan, which will require the upgrading of the transmission backbone to 400 kV at an estimated cost of N$4-billion to meet high demand growth, particularly in northern Namibia.