Energy Policy & Regulation

Namibia and South Africa are eager to increase cooperation in various areas, including the energy sector, to grow the economies of both countries.

South African President Cyril Ramaphosa, during talks with President Hage Geingob, who was on a state visit to South Africa last week, said: “We are committed to deepening our cooperation, particularly in the area of trade and investment. One of the areas to expand cooperation is in energy investment,” said Ramaphosa, adding that the two countries are planning massive hydrogen projects.

Ramaphosa said private sector and state-owned enterprises from both countries should work together in the energy sector, which will result in the growth of the economies of the two countries.

He also vowed to work together with Namibia in the pursuit of low-carbon, as well as inclusive and climate-resilient development, as South Africa, like Namibia, is a water-scare country and it is, thus, particularly vulnerable to climate change.

The purpose of Geingob’s visit was to further strengthen bilateral relations, enhance economic cooperation, explore trade and investment, as well as identify new areas of cooperation. 

President Geingob was accompanied by various ministers and senior government officials.

Ramaphosa called for efforts to use the geographic proximity and close ties between the two economies for greater mutual benefit.

South Africa is Namibia’s largest export partner and supplies 40% of Namibia’s electricity import demand. 

Namibia imports between 50-60% of its total annual electricity consumption from the Southern African Power Pool (SAPP), a common power grid and electricity market between countries in the SADC region.

However, the country seeks to replace electricity imports with domestic power generation capacity, particularly through large-scale green hydrogen development.

 South Africa would also stand to benefit from lightened power trading volumes routed through the Southern Cape, resulting in increased transmission capacity and reduced energy losses.

NamPower has recently made some strides in bringing the country towards energy independence.

The company last week announced the significant rain in the central and upper parts of the Kunene River catchment in Angola between March and April 2023 caused water to reach the Ruacana Hydro Power Station last week; hence, the sluice gates were opened.

 Since, the power station has been generating electricity at full load, with NamPower supplying more than 95% of the country’s electricity demand for the past week. 

The status is expected to continue for the remainder of April 2023.

NamPower also signed a power purchase and transmission connection agreements with CERIM Lüderitz Energy (PTY) LTD for the development of the 50MW Lüderitz Wind Power Plant on a build-own-operate basis, as well as the associated transmission connection infrastructures required to connect the power plant to the Namibia grid. 

The power plant, which will cost approximately N$1.40 billion, will be located about 16km south of Lüderitz