Niël Terblanché
NamPower is set to begin construction of a 40MW biomass power generation station at Otjikoto Substation near Tsumeb.
With an estimated development cost exceeding N$2 billion, the project is another significant step in Namibia’s efforts to enhance its energy security and utilize renewable resources.
The Otjikoto Biomass Power Station, the first and largest of its kind in the country, will generate electricity through the combustion of wood chips sourced from encroacher bush that grows in the areas surrounding the envisaged plant.
During a signing ceremony held in Windhoek last week, NamPower’s Managing Director, Simson Haulofu, pointed to the economic potential of converting encroacher bush into electricity.
He said that the abundance of encroacher bush and the national electricity shortfall present a unique opportunity for sustainable power generation.
“This project will be one of the answers to the long-awaited realisation of a baseload power station in Namibia,” said Haulofu.
According to Haulofu, the initiative aims to provide a cost-effective baseload electricity supply and expand the nation’s power generation capacity.
The power station is expected to be operational by 2027.
The Namibian government has allocated N$400 million to the biomass electricity generation project, with additional funding facilitated by the French Development Agency, which provided a loan of over N$1.9 billion.
Further financial support includes a N$500 million grant from the Mitigation Action Facility and an N$60 million contribution from the French Fund for Global Environment.
The power station will be developed as an Engineering Procurement and Construction (EPC) project and will be owned and operated by NamPower.
Dong Fang Electric International Corporation has been selected to implement the project.
Other key suppliers for the venture include several joint ventures such as Nexus Civils and Africa Biomass Company, Sactos Investment and Forestry Plant and Equipment Sales, and the Namibia Biomass Industry Group in partnership with Ultra Special Supermarket.
The project is poised to offer numerous benefits beyond electricity generation.
According to a macroeconomic study, the Otjikoto Biomass Power Station could yield around N$21 billion in economic benefits, including improved agricultural productivity and increased groundwater recharge in harvested areas.
The initiative also aligns with Namibia’s renewable energy policies, aiming to secure the nation’s energy supply and position Namibia as a net exporter of electricity by 2030.
NamPower’s efforts are part of a broader strategy to diversify Namibia’s energy mix and reduce dependency on imported electricity.
The project also supports the fifth National Development Plan (NDP5) objectives, aiming to increase local generation capacity and promote sustainable resource management.
