Photo: newcivilengineer
By: Nghiinomenwa-vali Hangala
High reliance on imports exposes NamPower to regional supply risks and price volatility, reinforcing the urgency of expanding reliable domestic generation.
This was noted by NamPower in its 2026-2030 Integrated Strategic Business Plan.
The country’s heavy reliance on imported power is driven by the country’s rainfall-depended main power source, hydropower.
Rainfall affects Ruacana’s output and determines the balance between domestic generation and imports. The Ruacana Hydro Power station is the country’s largest electricity producer.
NamPower’s import share rose from 59% in 2020 to 71% in 2022, driven by variable Ruacana output and regional market conditions, before decreasing to 58% in 2023 and 46% in 2024.
The power utility consented that with imports currently meeting about 60% of demand, reducing dependency remains a national priority.
Government initiatives focus on expanding renewable energy from solar, wind, hydro, and baseload plant(s).
NamPower is central to this transition, advancing projects such as the 100 MW Rosh Pinah Solar PV Plant and the 40 MW Biomass Project, which support self-sufficiency and cleaner generation.
NamPower also faces competitive pressures from cross-border electricity imports.
The company noted that most of the utilities in the region benefit from government subsidies or legacy pricing structures that allow them to offer electricity at rates below the cost of local generation.
“If such imported electricity is not priced in a cost-reflective manner, it can significantly undercut domestic electricity producers and discourage further local investment,” Nampower noted.
Moreover, Namibia’s dependence on the Southern Africa Power Pool (SAPP) poses a risk of market distortion.
According to Nampower, regional imports, though economically attractive, may compromise the development of Namibia’s internal generation capabilities and energy independence goals.
By 2025, the country’s installed generation capacity stands at approximately 568 MW, consuming between 4,000 and 4,200 GWh annually.
Despite this capacity, Namibia continues to import around 60% of its electricity requirements, underscoring the ongoing reliance on regional supply.
Within domestic generation, renewables account for about 60%, predominantly local hydro, solar and wind projects, of which 97% is sourced in-country.
When imports are included, renewables make up closer to 20–25% of Namibia’s overall electricity supply, according to Nampower.
Independent Power Producers (IPPs) have become a consistent part of Namibia’s supply mix and play a growing role in diversification, but imports and Ruacana remain the largest contributors overall.
To date, IPPs have roughly 250 MW of installed capacity contributing about 6.5% of national demand.
Namibia mostly imports its energy from regional producers; Eskom, ZESCO and ZPC.
Eskom’s share of imports has declined modestly since 2021.
ZESCO has remained a relatively stable supplier, though subject to hydrological variability, while ZPC’s contribution has fluctuated, underlining the importance of a more balanced portfolio.
As for the SAPP, it contributes smaller shares compared to bulk imports from Eskom, ZESCO and ZPC and generation by IPPs, with year-to-year variability highlighting the need for flexible procurement and regional cooperation, wrote Nampower.
Namibia Renewable Energy (RE) Potential
• Power output achievable by a typical utility-scale PV system stands at 5.38 kWh/ kWp/day, twice as much as in Germany and 40% more than in China.
• Namibia also has good wind potential, with most potential concentrated in the southern coast and borders with Angola. Average wind speeds exceed 7 m/s, and capacity factors may reach 50%.
• Namibia has an estimated hydropower potential of 2250 MW.
According to Nampower, future electricity demand growth will be closely linked to GDP and sectoral expansion, requiring proactive planning of generation and transmission capacity.
A report by the European Commission’s Joint Research Centre (JRC) projects that Southern Africa’s Total Primary Energy Supply (TPES) will grow by 32% from 2015 to 2030, driven by population and economic growth.
As of 2020, the African Energy Commission (AFREC) recorded Namibia’s total primary energy supply at 838.67 ktoe, with biomass comprising 64% and petroleum products 31%.
Namibia’s electricity sector has long relied on imports from South Africa, Zambia, Zimbabwe and the SAPP market due to limited domestic generation. NamPower, established in 1964 and rebranded in 1996, has historically dominated the vertically integrated electricity market.
Liberalisation of Namibia’s electricity sector began in the 1990s with initial reform efforts and the creation of REDs in the early 2000s, while NamPower remained vertically integrated.
The Electricity Act of 2000 introduced a regulated market under the Electricity Control Board and the Single Buyer model, which was later reformed into the Modified Single Buyer framework.
The model was approved in 2015 and implemented in 2019 to expand participation of IPPs and eligible customers.
The sector is now transitioning toward a more decentralised and competitive market, involving private players, REDs, and regional energy traders.
Under the Electricity Act 4 of 2007, NamPower’s mandate covers the entire electricity value chain, including generation, transmission, distribution, supply, and energy trading. This includes facilitating electricity imports.
erastus@thevillager.com.na
