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Nampower

Posted on 10 June 2012 by Gaurav Malik

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The power of knowing the enormous responsibility NamPower has in ensuring a secure, affordable and reliable supply of electricity in Namibia compels the company to remain focused on its mission “to provide for the energy needs of our customers, fulfill the aspirations of our staff and satisfy the expectations of our stakeholders.”

There is a distinct correlation between socio-economic growth in a country and the steady, reliable supply of electricity.  Since its establishment, NamPower has earned itself the solid reputation of reliably keeping the engine of the Namibian economy moving forward.

As the demand for electricity continues to grow, especially in the Central Namib where there has been significant economic growth, NamPower as the bulk supplier to mainly Regional Electricity Distributors (REDs), Mines, and Local Authorities (where REDs are not operational) has put short-, medium and long term transmission and generation energy projects in place to meet the power supply challenges.

Namibia’s current national peak demand is approximately 511 MW of which a significant portion is imported from the Southern African Power Pool (SAPP).

Our Projects

Generation Projects:

  • The ANIXAS peaking Power Station with a capacity of 22.5 MW at Walvis Bay was officially inaugurated by His Excellency President Hifikepunye Pohamba on 3 November 2011.  As it was the first power station to be built in more than 30 years after the Ruacana Hydropower Station on the Kunene River, the project became historic in the annals of NamPower and the country.

 

  • The Ruacana Hydro Power Station, Namibia’s main source of power generation, contributes approximately 62% towards the current demand for power in Namibia, but is dependent on the run of the river.  Work on the installation of a 4th Unit turbine at the power station has been completed and NamPower took over commercial operation at the end of March 2012.  The installed capacity of the 4th Unit turbine is 92 MW and the new combined installed capacity of the Ruacana Hydropower Station is now 332 MW.  The 4th Unit will be officially inaugurated during the second half of this year.

 

  • The substantial increase in power demand in the Central Namib due to development growth has required the investigation into the feasibility of a Coal-fired power station (base load capacity 150 – 450 MW in the Erongo Region).  From the initial screening process, four potential sites were chosen for the construction of the proposed Erongo Coal-Fired Power Station and based on theresults of the scoping process, the preferred site will then be taken forward into the Environmental and Socio-Economic Impact Assessment (ESEIA) phase for detailed assessment.

 

  • The original concept of the Kudu-Gas-to-Power Project was changed from treating gas on-shore to the treatment of gas off-shore on a floating platform operation (FPO) enabling dry specification gas to be piped on-shore. The concept of developing an 800 MW CCGT Power Station north of Oranjemund situated 170 km from the offshore Kudu Gas Field has remained, and good progress has been made by the upstream parties and NamPower (as power station developer).

 

  • The Baynes Hydro Power Project, situated along the Kunene River, 200 km downstream of Ruacana emanates from studies conducted on the Epupa and Baynes sites along the Kunene downstream of Ruacana, which revealed that while the Epupa Site was technically preferable due to greater storage capacity, the Baynes site would be less disruptive to the life of the indigenous Himba community, and would have lesser environmental impact.

Both the Angolan and Namibian governments through the Permanent Joint Technical Commission on the Kunene River (PJTC) have agreed to study the Baynes option further.

A Techno-economic Feasibility Study and Environmental and Social Impact Assessment study conducted independently found that the project is technically and commercially feasible.

It is envisaged that the Baynes mid-merit/peaking power station’s capacity could be between 350-550 MW which will be shared equally between Namibia and Angola.

Renewable Energy Projects:

  • NamPower is currently negotiating Power Purchase Agreements (PPAs) with three prospective wind energy developers, one in Lüderitz and two in the Walvis Bay area.
  • The Tsumkwe Renewable Energy Project, one of the largest state-of-the art 200 kW solar diesel hybrid system in Africa was technically commissioned at Tsumkwe in August 2011. Businesses and some 700 residents in the growing town of Tsumkwe now have access to modern energy services. Almost 80 solar water heaters have been installed, over 80 electric stoves replaced with gas stoves, and incandescent lights were replaced with energy saving ones.  In addition pre-paid meters were installed for all electricity users.
  • Private developers have commenced with a biomass project utilizing invader bush to generate electricity.  The project known as C-Bend (Combating bush encroachment for Namibia’s development) is a pilot plant of 250 kW.  NamPower is supporting the project through a PPA it has signed with the developers.

 

  • A grant was obtained from KfW of Germany to conduct a biomass feasibility study into the utilization of large scale invader bush to fire a power station of 10 to 20 MW. 

 

Transmission Projects:

  • The historical Caprivi Link Interconnector Project, commissioned at Katima Mulilo on 12 November 2010 is reinforcing and stabilizing the electricity supply to Namibia.  The 951 km HVDC line linking the far north-east with central Namibia provides a second north-south interconnector within the Southern African Power Pool and forms part of the SAPP vision to interconnect the region.  Due to its nature of setting power flows, the Caprivi Link will add to the energy trading potential within the region, and improve the dynamic stability of the SAPP transmission network.

 

  • The West Coast Development Project involved extensive transmission infrastructure planning and development due to the rapid expansion of mining activities in the Erongo Region, with additional requests being received from Uranium Mine developers.

 

  • The Rössing-Walmund 220 kV line project has commenced to replace the entire line section with a twin circuit 220 kV line to cater for future load growth in the West Coast.  The EIA has been conducted and approval been obtained.

 

  • Zimbabwe, Zambia, Botswana and Namibia (ZIZABONA) have in principle agreed to develop a multi-million power line that would allow an additional 600 MW to be transmitted around the region. Power utilities in these countries have signed an Inter-Utility Memorandum of Understanding for cooperation in the investment of new transmission infrastructure.

Continuous system improvements at transmission level are planned and implemented to facilitate a reliable and continuous supply to all customers.

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Financial Highlights for the year ended 30 June 2011

  • Revenue increased by 27.99% (2010 – 18.31%) to N$2.3 billion (2010 – N$1.8 billion). The Group revenue from sales of electricity increased by 19.6% (2010 – 18.1%) to N$ 2.1 billion from N$ 1.7 billion. Increase in revenue was driven by a combination of increases in sales volumes, contributions by customers and the 18% annual tariff increase granted for the financial period ended June 2011.
  • Units sold increased by 3.26% (2010 – 2.17%) to 3,543 GWh compared to prior year (3,431 GWh).
  • Maximum demand increased by 2.84% (2010 – 9.1%) to 580 MW (including Skorpion Mine demand) achieved in June 2011 against the previous peak demand of 564 MW achieved in 2010.
  • The Group revalued its property, plant and equipment during the year in line with its policies, resulting in the revaluation surplus of N$5,5 billion and impairment of N$120 million. The revaluation had an effect of significantly increasing the Group depreciation and amortisation cost to N$666 million from N$239 million (2010), an increase of 178,6 percent (2010 – 4,8 percent).
  • Group profit before tax, after accounting for interest, depreciation and amortisation, was however N$ 123 million, 66.9% lower than that achieved in the prior year of N$ 371 million. This is mainly attributable to the increase in depreciation expense, impairment loss on property, plant and equipment on revaluation charged to the income statement and the loss on fair value adjustments of firm commitments.
  • Capital expenditure for the Group amounted to N$ 909 million for the year under review (2010 – N$ 1.8 billion).

 

  • Total assets increased from N$ 14.5 billion in 2010 to N$ 20.5 billion in 2011.  The 39.3% of this increase is attributable to the revaluation of the core categories of property, plant and equipment discussed above. The Group also received a donation of transmission assets from a customer amounting to N$ 427 million (2010 – N$ 12.6 million).

 

Our success

NamPower’s success is built on a very strong foundation of business culture and good corporate citizenship, and in moving forward the company shall continue to invest in powering the nation, protecting our environment, uplifting marginalized communities, providing excellent customer service and meeting the aspirations of our staff now and for generations to come.

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NamPower: Corporate Communications Section

Office of the Managing Director

P O Box 2864

WINDHOEK

Namibia

Tel. +264 61 2054111

Fax. +26461 2052372

tangeni.kambangula@nampower.com.na

cecilia.pretorius@nampower.com.na

www.nampower.com.na

 

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