Namibia receives US $138M boost for renewable energy

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Namibia receives US $138M boost for renewable energy

Namibia has received a boost of US $138M to enhance its power grid for the integration of renewable energies.

The financing is provided by the International Bank for Reconstruction and Development (IBRD) Fund for Innovative Solutions in Global Public Goods and the Green Climate Fund (GCF). NamPower will utilize the funds to implement a project focused on extending the electricity transmission and storage network.

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Grid stability

A key component of the project is the construction of the 458 km Auas-Kokerboom 400 kV transmission line, which will require an investment of $115 million. The high-voltage line will run from the Kokerboom substation near Keetmanshoop to the Auas substation near Windhoek, parallel to an existing line to the south.

In addition to transmission improvements, the project includes the design, supply, installation, and commissioning of a 100 MWh/25 MW battery storage system. This storage infrastructure is crucial for managing the variability of renewable energy sources and reducing dependency on fluctuating electricity imports from Eskom, South Africa’s electricity company.

NamPower’s Managing Director, Kahenge Simson Haulofu, highlighted that the new infrastructure will not only integrate renewable energies but also enhance grid stability. The development of a second utility-scale battery storage system will further support the integration of renewable energy plants into Namibia’s transmission network.

Namibia, with its significant solar potential—receiving 10 hours of sunshine daily for 300 days a year—has substantial opportunities for renewable energy exploitation. Currently, the installed renewable capacity in Namibia is just over 30% of the total production of 690 MW. These investments are expected to accelerate the country’s transition to sustainable energy development.