Local generation to power over half of Namibia's deeds in 2025/2026
Namibia is projected to reduce its reliance on foreign electricity in the 2025/2026 period, according to the Electricity Control Board of Namibia (ECB). The ECB’s forecast follows a recent tariff hike announcement, with the Ruacana Hydropower Plant expected to supply the majority of the country’s local demand, bolstered by new renewable energy plants and market reforms.
“For the 2025/2026 period, it is projected that 53% of the national demand will be supplied by local generation, with the remaining 47% to be met with regional imports. The Ruacana Hydropower Plant remains the primary source of local generation, with performance dependent on the water flow of the Kunene River,”ECB CEO, Robert Kahimise said.
Compared to other generation sources, electricity is generated relatively cheaply at the Ruacana Hydropower Plant, Kahimise said. “Therefore, less generation at Ruacana results in increased generation of power from expensive alternatives or imports at higher costs. Hydropower is generally considered a low-cost source of electricity."
During the period 2023/2024, Ruacana generation achieved one of its best productions in years, generating 2 067 GWh (Gigawatt-hour or one billion watt-hour) due to favourable water management and water flow conditions.
“Notably, there has been an increase in local generation from renewable energy plants over the period,” he said.
More electricity generation
To complement local generation, two plants had been added to the national grid in the 2024/2025 period, the 58 megawatt (MW) Anixas II diesel-powered station and the 20MW Khan Solar photovoltaic (PV) plant, Kahimise explained.
“The two above mentioned plants are part of the 79 electricity generation licenses that the ECB has issued, out of which 41 are operational and 38 are still under development. We hope that those licensees that have not yet commissioned their plants will do so soon; this will have a positive impact on end-consumer prices,” he said.
To further improve the electricity supply situation, the government introduced the Modified Single Buyer (MSB) Market model, a unique Namibian market platform which allows private generators and contestable customers to transact electricity directly, Kahimise said.
“There are seven operational solar PV plants with a combined installed capacity of 38MW established under the MSB Model. It is anticipated that about 93MW will be commissioned during the 2025/2026 financial period, meaning that more electricity will be generated locally, hence reducing imports and overall cost of electricity,” he said.
“For the 2025/2026 period, it is projected that 53% of the national demand will be supplied by local generation, with the remaining 47% to be met with regional imports. The Ruacana Hydropower Plant remains the primary source of local generation, with performance dependent on the water flow of the Kunene River,”ECB CEO, Robert Kahimise said.
Compared to other generation sources, electricity is generated relatively cheaply at the Ruacana Hydropower Plant, Kahimise said. “Therefore, less generation at Ruacana results in increased generation of power from expensive alternatives or imports at higher costs. Hydropower is generally considered a low-cost source of electricity."
During the period 2023/2024, Ruacana generation achieved one of its best productions in years, generating 2 067 GWh (Gigawatt-hour or one billion watt-hour) due to favourable water management and water flow conditions.
“Notably, there has been an increase in local generation from renewable energy plants over the period,” he said.
More electricity generation
To complement local generation, two plants had been added to the national grid in the 2024/2025 period, the 58 megawatt (MW) Anixas II diesel-powered station and the 20MW Khan Solar photovoltaic (PV) plant, Kahimise explained.
“The two above mentioned plants are part of the 79 electricity generation licenses that the ECB has issued, out of which 41 are operational and 38 are still under development. We hope that those licensees that have not yet commissioned their plants will do so soon; this will have a positive impact on end-consumer prices,” he said.
To further improve the electricity supply situation, the government introduced the Modified Single Buyer (MSB) Market model, a unique Namibian market platform which allows private generators and contestable customers to transact electricity directly, Kahimise said.
“There are seven operational solar PV plants with a combined installed capacity of 38MW established under the MSB Model. It is anticipated that about 93MW will be commissioned during the 2025/2026 financial period, meaning that more electricity will be generated locally, hence reducing imports and overall cost of electricity,” he said.
