Namibia could face an uphill battle in meeting its high appetite for electricity after the country’s biggest power supplier, South Africa, pushed through contentious mineral law changes.
The latest amendments to that country’s Mineral and Petroleum Resources Development Act will give that government the power to regulate the export of electricity by Eskom to countries including Namibia.
Eskom, which is SA’s power utility, could now be forced to cut or suspend this agreement in order to meet its own citizens’ demand.
Namibia relies heavily on South Africa for electricity, especially during winter when the demand for power almost doubles.
For the coming winter the future is bleak, as it is not certain whether Eskom will still be able to supply Namibia.
“If there is an agreement that agreement will be honoured but the impact on electricity, with or without the bill, will affect us,” said Mines Minister Isak Katali.
“We get a chunk of our need from Eskom but one has to understand that South Africa as a country and Eskom as a company have to first serve their own country before they look at others.”
Katali last year said that the special assistance agreement with Eskom was extended for a further three years but it is not clear whether that will still stand.
Namibian Sun submitted questions to Eskom on the impact of the amendments on its export of electricity, but no response had been received by yesterday.
During her motivation of the new amendments, SA’s Mineral Resources Minister Susan Shabangu said: “We are on the path of changing the mining and petroleum industry in South Africa, whether you like it or not.
“Change is painful, change is bitter, especially when you are stuck in the past. This act is about the people of South Africa.”
Katali could not say what emergency measures would be taken if SA decides to pull the plug overnight.
“There is no really quick fix to the issue of electricity. We are going to see how we will survive; maybe we will conclude agreements with countries that can provide us with electricity.”
He added that Nampower is in consultation with Zimbabwe Electricity Supply Authority Holdings (ZESA).
Namibia also imports power from Zimbabwe (150 MW), Zambia (50 MW) and Mozambique (115 MW).
In the latest national budget presented by Finance Minister Saara Kuugongelwa-Amadhila the government has set aside N$1.6 million for the construction of an 800 MW Kudu Gas power plant over the next three years.
With regard to the planned Baynes hydropower plant near the Epupa Falls on the Kunene River, Katali said: “We are moving, as has been reported several times. We are still on course.
The feasibility study has been concluded and the report is with the committee of both countries.”
He said after the Permanent Joint Technical Commission has perused the report it will be submitted to both governments for the funds to be released.
The Namibian government opted for the construction of the hydropower dam due to three main drivers: a reduced availability of electricity imports from neighbouring countries, increasing costs of electricity imports and an increase in the domestic demand for electricity.
Drought has affected the water flow in the Kunene River, resulting in reduced output from the Ruacana hydropower station, which is the country’s main generation source.
The Van Eck Power Station in Windhoek is completely unavailable due to the rehabilitation programme currently under way to extend the life of the power station by 10 years.
Due to warranty repairs, only two generating units were available at the Anixas diesel-powered station in Walvis Bay last winter.
The ageing Paratus Power Station, also in Walvis Bay, is not running at full capacity and its output has been reduced from 6 MW to 3 MW, the minister added.
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