Namibia has received approval for its first-ever World Bank-financed energy project, which aims to enhance the reliability of the country’s transmission network and integrate more renewable energy into its electricity system. The $138.5 million project will be executed by NamPower, the national electricity utility.
Satu Kahkonen, World Bank Country Director for Namibia, highlighted the significance of this project, noting Namibia’s leadership in transitioning towards a greener and more sustainable future. She emphasized that this project aligns with Namibia’s Second Harambee Prosperity Plan (HPPII) and will support NamPower in developing future renewable energy projects.
The project comprises three key components: the construction of the second Auas-Kokerboom transmission line, the development of a utility-scale Battery Energy Storage System (BESS) facility, and technical assistance to help NamPower create bankable renewable energy projects while enhancing socio-economic benefits. This initiative aims to create jobs, develop skills, and increase female employment during the design and implementation of utility-led projects.
NamPower’s Managing Director, Kahenge S. Haulofu, expressed enthusiasm for the project, calling it a strategic investment crucial for maintaining the country’s electricity transmission network. He noted that the new transmission line will facilitate increased access to variable renewable energy (VRE) within Namibia and support regional electricity trading. Additionally, the development of the second utility-scale battery energy storage system will aid the integration and uptake of renewable energy plants.
Namibia, with its abundant renewable energy resources, currently has just over 30% of its total generation capacity from renewables. Strengthening the power grid through this project is essential for integrating more VRE sources, minimizing outage risks, supporting load growth, and enhancing power trade opportunities in the Southern African Power Pool. The project will receive grant funding from the IBRD Fund for Innovative Global Public Goods Solutions and the Green Climate Fund to develop the second utility-scale battery storage facility, further promoting renewable energy integration, reducing imports, improving grid stability, and managing demand peaks.
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