Namibia's IPPs need upgrade to export power
Anirep Managing Director, Iyaloo Nangolo, says Namibia’s independent power producers (IPPs) stand to benefit significantly if investments are made to upgrade the country’s power infrastructure, which he described as outdated and inadequate for current energy needs.
He added that improving infrastructure would also allow Namibia to generate export earnings rather than paying for electricity imports, thereby retaining much-needed foreign exchange within the country.
Speaking at the recent Namibia Public-Private Forum, Nangolo said there is substantial potential for Namibia to become a net exporter of energy into the Southern African Power Pool (SAPP).
“The region needs at least 5 gigawatts, and the existing connections are intermittent, colonial and antiquated. For Namibia to leverage its strengths, we need to expand our ability to connect to the regional grid. This will help us reduce our high energy bill, stop exporting our funds to pay for imported electricity, and retain that value within Namibia,” Nangolo said.
He noted that Namibia’s IPPs have already demonstrated their capacity to produce sufficient electricity for export, citing an industry output of 860 gigawatt-hours in 2022, along with significant job creation potential.
“In 2022, we produced about 860 gigawatt-hours and employed more than 8 000 people. If we multiply that capacity tenfold, we can achieve it here in Namibia, but we need to enable transmission interconnections,” he said.
Countries within the SAPP face a growing power deficit driven by rising industrial demand, particularly from mining, and climate-related challenges affecting hydropower. At the same time, they are seeking greater integration of renewable energy sources such as solar and wind to ensure sustainable and affordable regional energy security. Current electricity trading remains constrained by limited supply and a reliance on bilateral contracts rather than competitive markets, underscoring the urgent need for major investments in both generation and transmission infrastructure.
He added that improving infrastructure would also allow Namibia to generate export earnings rather than paying for electricity imports, thereby retaining much-needed foreign exchange within the country.
Speaking at the recent Namibia Public-Private Forum, Nangolo said there is substantial potential for Namibia to become a net exporter of energy into the Southern African Power Pool (SAPP).
“The region needs at least 5 gigawatts, and the existing connections are intermittent, colonial and antiquated. For Namibia to leverage its strengths, we need to expand our ability to connect to the regional grid. This will help us reduce our high energy bill, stop exporting our funds to pay for imported electricity, and retain that value within Namibia,” Nangolo said.
He noted that Namibia’s IPPs have already demonstrated their capacity to produce sufficient electricity for export, citing an industry output of 860 gigawatt-hours in 2022, along with significant job creation potential.
“In 2022, we produced about 860 gigawatt-hours and employed more than 8 000 people. If we multiply that capacity tenfold, we can achieve it here in Namibia, but we need to enable transmission interconnections,” he said.
Countries within the SAPP face a growing power deficit driven by rising industrial demand, particularly from mining, and climate-related challenges affecting hydropower. At the same time, they are seeking greater integration of renewable energy sources such as solar and wind to ensure sustainable and affordable regional energy security. Current electricity trading remains constrained by limited supply and a reliance on bilateral contracts rather than competitive markets, underscoring the urgent need for major investments in both generation and transmission infrastructure.
