- Namibia plans to exit Eskom.
- The country has spent nearly N$3 billion to import energy from SAPP.
The government of Namibia is pursuing energy independence from Eskom to reduce the cost of electricity and attract more meaningful investment. According to the Economic Adviser, James Mnyupe, Namibia has spent about N$3 billion to import as much as 60% to 70% of its energy demand from the Southern African Power Pool (SAPP) of which 40% comes from South African power utility, Eskom.
“It is well documented that our electricity is one of the most expensive on the continent, and as a result, we are losing out on large investment opportunities, including the recent Vedanta refinery that was poised to deploy N$6.5 billion into the economy,” said Presidential Economic Advisor and green hydrogen commissioner James Mnyupe.
Mnyupe made this revelation last week during the launch of Namibia’s first green hydrogen production plant to be constructed in the Erongo region through a joint venture between Ohlthaver & List Group and European-based CMB.TECH.
Mnyupe noted that the government is exploring the possibility of off-taking curtailed and dispensable power through gigawatt projects earmarked for the southern part of Namibia. This, he explained, could attract good prices for Namibian power, positively impacting the country’s current account surplus, reducing the cost of electricity and ultimately increasing competitiveness from a manufacturing point of view.