NamPower millions for Zim

NAMIBIA’S power utility, NamPower, yesterday revealed plans to pump up to US$40 million into the expansion and renovation of the Hwange power station in Zimbabwe.

NamPower Managing Director Paulinus Shilamba said yesterday that the money would come from the N$2 billion in reserves in the parastatal’s coffers. In return, Zimbabwe Electricity Supply Authority Holdings (ZESA) has undertaken to guarantee five years of electricity supply to NamPower – albeit at a cost.The two power entities and Zimbabwe’s Electricity Distribution Company (ZEDC) signed a loan and power purchase agreement yesterday under which NamPower would advance the money on a loan basis and buy electricity from Zimbabwe.According to the agreement, NamPower will be supplied with 150MW for five years.The expansion and renovation of the four generators at Hwange will start as early as the second half of this year and by January next year NamPower will receive 40MW.Shilamba said the last generator would be fully repaired by August next year.The four generators are capable of generating 480MW but have operated on and off as Zimbabwean power suppliers have struggled to cope with frequent equipment breakdowns and coal shortages.Shilamba said the rehabilitation of the Hwange power station would have major benefits for not only Zimbabwe and Namibia but also the southern African region.He said Namibia currently faced an electricity shortfall of around 300MW.With 150MW coming from Zimbabwe’s Hwange soon, Shilamba agreed that more needed to be done to find more electricity.At present, Namibia imports about 50 per cent of its electricity, mainly from Koeberg in South Africa.When SA had power problems last year Namibia introduced load-shedding – alternating power outages between areas.South Africa generates more than 75 per cent of the electricity used in the Southern African Development Community (SADC) region.Shilamba said even the 150MW from Hwange would come through SA, because the Caprivi power line linking Namibia and Zimbabwe will only be completed by the year 2009.He said Namibia also imports power from Zambia and Mozambique through the Southern Africa Power Pool (SAPP).Recently, Mines and Energy Minister Erkki Nghimtina warned the nation that from August Eskom could suspend power supplies to Namibia whenever its internal electricity demands exceed supply.When Eskom had power problems, Namibia was forced to reactivate the coal-fired Van Eck power station in Windhoek.South Africa is experiencing an increased local demand for electricity and Eskom has stated on several occasions that it cannot continue supplying electricity to other countries at the same scale.Meanwhile, negotiations on the envisaged Kudu gas-fired power plant are entering the “final round”, according to Nghimtina.In return, Zimbabwe Electricity Supply Authority Holdings (ZESA) has undertaken to guarantee five years of electricity supply to NamPower – albeit at a cost.The two power entities and Zimbabwe’s Electricity Distribution Company (ZEDC) signed a loan and power purchase agreement yesterday under which NamPower would advance the money on a loan basis and buy electricity from Zimbabwe.According to the agreement, NamPower will be supplied with 150MW for five years.The expansion and renovation of the four generators at Hwange will start as early as the second half of this year and by January next year NamPower will receive 40MW.Shilamba said the last generator would be fully repaired by August next year. The four generators are capable of generating 480MW but have operated on and off as Zimbabwean power suppliers have struggled to cope with frequent equipment breakdowns and coal shortages.Shilamba said the rehabilitation of the Hwange power station would have major benefits for not only Zimbabwe and Namibia but also the southern African region.He said Namibia currently faced an electricity shortfall of around 300MW.With 150MW coming from Zimbabwe’s Hwange soon, Shilamba agreed that more needed to be done to find more electricity.At present, Namibia imports about 50 per cent of its electricity, mainly from Koeberg in South Africa.When SA had power problems last year Namibia introduced load-shedding – alternating power outages between areas.South Africa generates more than 75 per cent of the electricity used in the Southern African Development Community (SADC) region.Shilamba said even the 150MW from Hwange would come through SA, because the Caprivi power line linking Namibia and Zimbabwe will only be completed by the year 2009.He said Namibia also imports power from Zambia and Mozambique through the Southern Africa Power Pool (SAPP).Recently, Mines and Energy Minister Erkki Nghimtina warned the nation that from August Eskom could suspend power supplies to Namibia whenever its internal electricity demands exceed supply.When Eskom had power problems, Namibia was forced to reactivate the coal-fired Van Eck power station in Windhoek.South Africa is experiencing an increased local demand for electricity and Eskom has stated on several occasions that it cannot continue supplying electricity to other countries at the same scale.Meanwhile, negotiations on the envisaged Kudu gas-fired power plant are entering the “final round”, according to Nghimtina.