Chamwe Kaira
Namibia’s electricity security has improved after Eskom concluded firm power supply agreements with Namibia and Botswana, effective 1 April 2025.
The agreements come as international demand for South African power rises due to drought conditions that have reduced supply from other regional sources.
Eskom’s interim performance update for the six months ended 30 September 2025 shows Namibia is among the countries relying on South Africa as Eskom stabilises its generation fleet and improves reliability.
On a non-firm basis, consumption from neighbouring states such as Eswatini, Lesotho, and Zambia also increased year-on-year, while the supply to Zimbabwe decreased due to non-payment.
Eskom said its improved station performance supported higher regional demand. The utility recorded only four days of load shedding during the period and none since mid-May.
It posted a profit after tax of N$24.3 billion, up from N$17.8 billion in September 2024, supported by a 12.74% tariff increase and stronger operational output.
Revenue rose 4% to N$191.3 billion, though local sales volumes declined 3% because of weak industrial demand and rising rooftop solar generation.
The company reported ongoing challenges due to illegal connections, meter tampering, and non-payment by municipalities. Non-technical losses reached an estimated N$17.5 billion during the period.
Eskom’s operational turnaround, including the commercial operation of Kusile Unit 6 and the return of Medupi Unit 4, has strengthened investor confidence.
Credit rating agencies noted that Eskom’s recovery is supporting improved sentiment around South Africa’s medium-term growth prospects. The government projects GDP growth of around 1.8%.
Eskom said continued reforms and sustained operational gains remain essential for regional power stability and for meeting commitments to countries such as Namibia under the new firm supply agreements.
According to the NamPower 2024 annual report, Namibia supplements locally generated electricity with imports through the Southern Africa Power Pool using its energy trading system.
The volume of imports depends on the availability of local generation. NamPower currently imports about 45–60% of its energy requirement on average.
The utility has increased local capacity by refurbishing and upgrading existing power plants and working with the private sector to add renewable energy to the grid.
New solar PV, wind, biomass and battery storage technologies offer NamPower opportunities to diversify local generation, reduce import dependence on imports and build a sustainable supply mix.
Peak demand reached 672 MW/h on 4 June 2024, up from the previous record of 633 MW/h, a year-on-year increase of 6%.
Caption
Namibia is among the countries that are turning to South Africa’s power utility because it stabilises its generation fleet and improves reliability.
- Photo: Eskom
