- NamPower has signed a contract for a 100 MW solar power plant with Chinese firms, valued at 1.4 billion Namibian dollars (about 78.33 million US dollars), financed primarily by KfW.
- The Chinese companies will manage the construction. It will start soon and is expected to be completed in 18 months. Operations are slated to begin in Q2 2026.
- The project aims to boost Namibia’s energy capacity and reduce import reliance.
NamPower, Namibia’s national electricity company, has contracted with China Jiangxi International Economic and Technical Cooperation Co. Ltd and China New Energy Development (Zhejiang) Co. Ltd to build a 100-megawatt (MW) solar power plant.
The project aims to boost Namibia’s domestic energy production, valued at 1.4 billion Namibian dollars (about 78.33 million US dollars). It also seeks to reduce reliance on electricity imports from Zambia and South Africa.
KfW, the German development bank, is financing 80% of the project. NamPower will fund the remaining 20% of its resources. Construction, managed by the Chinese firms, is expected to begin soon and take 18 months. The plant is scheduled to start operations in the second quarter of 2026.
The new solar plant will add 100 MW to NamPower’s current capacity of around 500 MW. This addition is crucial as Namibia faces growing energy demand and pressure on its electricity infrastructure. The project is part of NamPower’s strategy to diversify energy sources and stabilise tariff rates.
The initiative will also include training for Namibian workers. This training will focus on installing and maintaining solar infrastructure, thus enhancing local expertise. NamPower’s goal is to build domestic capacity and ensure long-term sustainability.
KfW’s support is vital for the project’s success. However, NamPower must manage construction and operational costs carefully to ensure profitability. If the plant produces surplus energy, it could support NamPower’s exportation strategy, contributing to regional energy stability.
The involvement of Chinese companies reflects a growing trend of Chinese investment in sub-Saharan Africa’s energy sector. This partnership is expected to improve Namibia’s energy sector resilience. The project aligns with Namibia’s energy reforms, which aim to modernise the industry and attract more private investment.
By increasing local production, Namibia aims to reduce its vulnerability to external shocks and stabilise its electricity supply. Institutional players and investors closely watch the project, which could be a model for future regional energy initiatives.
Overall, the solar power plant is significant in Namibia’s efforts to enhance energy independence and resilience. The project addresses immediate energy needs and positions Namibia as a more self-sufficient player in the regional energy market.