Namibia plans $1 billion power infrastructure overhaul

• 10 years ago (2014-04-22)
• Junior Isles

Africa 303 North America 999 Renewables 752

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Namibia’s national power utility, NamPower, has unveiled joint plans with private utilities to invest over US$1 billion in the Southern African country’s power generation infrastructure as part of a plan to head off the prospect of serious power shortages.

Media reports claim Arandis Power, which represents a group of local and international private investors, will set up a N$3 billion ($285 million) solar PV hybrid power plant and a waste oil recycling plant in Arandis, Erongo Region.

It is claimed that this plant’s planned 120 MW of generating capacity could potentially make up over 26 per cent of Namibia’s future energy mix.

Arandis Power is a joint venture between a variety of Namibian and international companies partnered with Copperbelt Energy Corporation Africa, a subsidiary of Zambia’s CEC.

Ezio Vernetti, an executive of Arandis Power, has revealed that the plant will combine solar PV with thermal heavy fuel oil (HFO) generation, making it Namibia’s largest existing plant and a first for African power generation.

"Of the total N$3 billion required, 30 per cent will come from shareholders while the remaining 70 per cent will be bank loans,” Vernetti said. “Plans are to start with the construction of the power plant later this year and it will take about 22 months to complete,” he continued.

Paulinus Shilamba, Managing Director of NamPower, announced that N$7 billion ($645 million) will be spent on improving Namibia’s transmission grid to ensure consistent power supply over the next five to seven years.

He also revealed that NamPower would be ditching N$3 billion ($285 million) of planned funding for emergency diesel generators, instead diverting this to develop a 250 MW generation power plant in the Erongo Region as a longer term solution to potential power shortages.