The Electricity Control Board (ECB) revealed that 14 independent power producers (IPPs) have signed power purchase agreements (PPAs) with NamPower to supply 70MW of energy in an investment deal worth N$1.6 billion.
This comes at a time that has seen Namibia import up to 70% of its electricity requirements from the SADC region. The 14 IPPs are expected to supply a total of 70MW of renewable energy in the next 18 months with a combined investment amounting to N$1.6 billion to the electricity supply industry and ultimately the country’s economy. The ECB stated that HopSol Otjozondjupa being the first of the initial 14 IPPs has commenced operation since 28 June 2016.
“The ECB is therefore cognisant of the fact that a stable supply of electricity and the security of supply is crucial to power the economic growth into the future, but the ECB is also aware that tariff increases has an impact to the Namibian nation at large. In mitigating the impact of high electricity tariffs and improving electrification in Namibia, the ECB in conjunction with the Ministry of Mines and Energy developed two national support mechanisms,” ECB Chief Executive Officer, Foibe Namene said at the recently held NamPower Tariff Adjustment for 2016/17 media briefing.
The national power utility, NamPower, requested for an effective bulk tariff increase of 31.24%, an increase from N$1.28 to N$1.68 per kWh, which includes generation and transmission, for the period under review, in order to meet its service delivery. The adjustment was also triggered by the increased cost of supply largely due to an unexpected depreciation of the Namibian Dollar against the US Dollar. The approved effective tariff adjustment stands at 16.71% for this financial year.
“The increase is applicable to NamPower bulk customers like the Regional Electricity Distributors (REDs), Local Authorities, Regional Councils and Mines. Respective bulk customers (Distributors) will individually apply to the ECB for tariff increases that will be applicable to end customers. Programs such as interim Renewable Energy Feed in Tariffs (REFIT) (70MW), Hardap Solar PV Tender (37MW), and several unsolicited projects (64MW) will bring in an additional capacity of more than 150MW to the grid.