CHAMWE KAIRA
Namibia’s electricity’s supply is expected to have an additional 110MW locally generated supply by 2025.
“This will be supported by more than three renewable energy power project expected to come-on stream by the end of 2025 with a combined power supply of around 110MW,” budget documents showed.
The water and electricity sector is set to grow in 2024 and 2025. There are some developments around the solar powered storage-battery system pilot project to cater for the intensity of the UV rays in Namibia, as the current battery systems are not suitable to the Namibian climate as well as three water projects namely Rundu canal. Oshakati canal and Ohangwena water aquifer.
Electricity and water sector is estimated to slow down in 2023 on the back of lower electricity output from the Ruacana hydro-power station due to poor rainfall in southern Angola.
“The water subsector is expected to grow on the back on increased demand for water due to poor rainfall recorded in Namibia.”
The construction sector is estimated to contract in 2023 before returning to growth trajectory in 2024. The expected recovery is supported by increase in government expenditure on capital projects including the construction of new classrooms and on-going road projects and the low base effects.
“As the economy normalises, the construction sector is expected to expand further and grow in 2025 and 2026. The expectation is that the sector will benefit from increased investments including the,reopening one of the uranium mines, water projects, Lüderitz port expansion, construction of new mines (gold and lithium), construction activities linked to oil and gas as well as the green hydrogen sector,” the documents showed.
Rating agency, Fitch expects NamPower to remain reliant on imported electricity, with a gradual reduction over the medium term and more significant reduction from 2025 with the expected increase from new generation capacity. Namibia expects half of imports are from Eskom with the remaining from Zimbabwe Power Company, Zambia Electricity Supply Corporation (ZESCO) and Southern African Power Pool (SAPP)
