NamPower received N$2.6 billion in World Bank funding to expand its transmission network which would enable it to integrate renewable energy into the national grid.
This is the first-ever World Bank-financed energy project for Namibia and was approved on 6 May.
The Transmission Expansion and Energy Storage (TEES) Project aims to improve the reliability of the country''s transmission network and enable increased integration of renewable energy into the country''s electricity system.
NamPower''s managing director, Kahenge Haulofu, announced this on Monday in Windhoek.
He said he welcomes the project’s approval as a significant milestone in developing the approximately 465-kilometre line, which will run from the Auas transmission station outside Windhoek until the Kokerboom transmission station near Keetmanshoop.
"The project is structured around three components: the development of the second Auas-Kokerboom transmission line, the development of a utility-scale Battery Energy Storage System facility, and the technical assistance activities to support NamPower’s development of bankable renewable energy projects and enhancement of their socio-economic benefits," he said.
According to Haulofu, this is one of the major strategic and crucial investments in the Namibian electricity transmission network.
He explained that once completed, it will allow NamPower to maintain pace with the country’s evolving and increasing electricity needs.
This transmission line, he said, will be key to unlocking increased access to variable renewable energy within Namibia, as well as facilitating regional electricity trading.
In addition, NamPower plans to develop and integrate its second utility-scale battery energy storage system into its transmission network to facilitate the development and adoption of renewable energy plants.
According to Haulofu, the Lithops Substation in the Erongo region will connect to the Battery Energy Storage System, which is a component of the TEES project.
Haulofu said the expansion of the electricity network is necessary to provide for the current and future national load requirements.
He added that this would include not only an increase in capacity but also redundant capacity within the transmission system to ensure supply security due to unforeseen circumstances.
The World Bank country director, Satu Kahkonen, said Namibia is a uniquely positioned regional leader in the transition towards a greener and more sustainable future.
"This project will support NamPower in developing future renewable energy projects. Namibia''s National Energy Policy and the Renewable Energy Policy aim to achieve 85% self-sufficiency and aim to source 70% of its energy needs from renewable energy sources in the future," said Kahkonen.
A significant $138.5 million investment package to improve Namibia’s electrical infrastructure has been certified by the World Bank. The package places special emphasis on the integration of renewable energy through reinforced transmission lines and the installation of a second utility-scale battery storage facility. Under the leadership of NamPower, the national power provider, this historic endeavor represents the first energy project in Namibia to be funded by the World Bank.
To optimize its effectiveness and impact, the project is separated into three main components. The first part is the building of the second Auas-Kokerboom transmission line, a major piece of infrastructure that runs 465 kilometers from the Kokerboom station near Keetmanshoop to the Auas transmission station just outside of Windhoek. By using cutting-edge 422 series tower configurations with a compacted cross-delta conductor arrangement, this new 400 kV line will effectively double the transmission capacity between these two crucial points.
The construction of a 45 MW/90 MWh battery storage system, carefully sited at the Lithops substation in the Erongo region, is the second element. This location was selected because it is close to important load centers, mostly huge mining activities, and it has the potential to draw significant investments in solar photovoltaic systems. The battery storage facility is expected to be crucial in improving system stability, lowering dependency on energy imports, easing the smooth integration of large-scale renewable energy sources into Namibia’s power grid, and more effectively controlling demand peaks.
The third component of the project is technical assistance, which aims to enable NamPower to create bankable renewable energy projects and increase the socioeconomic advantages of its endeavors. In order to make sure that the utility can manage sustainably and expand its renewable energy portfolio in the future, this factor is essential. Grants from the Green Climate Fund and the International Bank for Reconstruction and Development (IBRD) Fund for Innovative Global Public Goods Solutions will be used to fund the battery storage facility. The development of this essential infrastructure is what these funds are intended to support, as it is essential to increasing Namibia’s capacity for renewable energy and overall energy security.
In his remarks on the project, Satu Kahkonen, the Country Director of the World Bank for Namibia, highlighted Namibia’s remarkable renewable energy potential. Even with such an abundance of resources, Namibia’s entire energy generation comes from renewables at 30% at the moment, indicating substantial development potential that this project seeks to realize.
Kahenge Haulofu, Managing Director of NamPower, expressed his excitement for the project and emphasized the new transmission line’s crucial role in improving access to variable renewable energy sources within Namibia and facilitating broader regional electricity trading. Additionally, he emphasized the significance of the recently installed battery storage system, which will facilitate the growth of renewable energy facilities as well as their integration into the country’s grid.
With financing from the World Bank, NamPower’s ambitious project is expected to drastically change Namibia’s energy environment by lowering outages, promoting load growth, and creating new avenues for power trading within the Southern African Power Pool. It leverages Namibia’s renewable energy capabilities to promote economic growth and regional collaboration in energy resources, marking a significant advancement in the country’s commitment to a sustainable and energy-secure future.
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Posted by The Staff Reporter | May 7, 2024 | Headlines
The country has successfully secured funding exceeding N$2 billion for the expansion of its transmission network and the integration of renewable energy into its grid.
On Tuesday, the first-ever World Bank-financed energy project for Namibia, valued at US$138.5 million (equivalent to N$2.6 billion), was approved.
The Transmission Expansion and Energy Storage (TEES) Project aims to enhance the reliability of Namibia’s transmission network and facilitate increased integration of renewable energy into the electricity system.
Structured around three key components, the project includes the development of the second Auas-Kokerboom transmission line, the establishment of a utility-scale Battery Energy Storage System facility, and technical assistance activities to support NamPower in developing bankable renewable energy projects.
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