Namibia’s power generation, transmission and energy trading corporation, NamPower, aims to play an enabling role in the development of the green hydrogen sector in Namibia by remaining a supplier of last resort to these new industries and also offtake some excess electricity from the renewable projects that are associated with the green hydrogen project.
However, the utility says it is not expected that the offtake of excess electricity will significantly improve the business case or economics of the green hydrogen projects as the quantities will depend on the supply profiles of each development.
NamPower itself is investing in its own renewable energy plants, such as the 100MW Sores |Gaib Solar PV Project near Rosh Pinah, in the south of the country, which forms an important part of Namibia’s generation strategy. Currently, a significant portion of Namibia’s demand is met through imports, particularly from South Africa, Zambia and Zimbabwe. This exposes the country to external market dynamics, including price fluctuations and supply constraints, due to climate change. Regional utilities collaborate through network connectivity, because the wires remain intact, to supply each other in order to meet countries’ demand.
“By increasing domestic generation capacity from renewable sources, Namibia improves its energy security and reduces supply risks. Projects like Sores |Gaib provide clean, affordable, and locally produced electricity, which will directly offset imports during daytime. In addition, such projects diversify the generation mix and contribute towards Namibia’s commitment to a sustainable energy transition.
“Over the medium to long term, continued rollout of renewable energy projects, complemented by Battery Energy Storage Systems (BESS), will enable Namibia not only to meet a larger share of its own demand but also to participate more competitively in the SAPP market. This transition is key to reducing import dependence while ensuring affordability and reliability of supply for Namibian consumers, meeting domestic demand,” says NamPower Managing Director Kahenge Haulofu.
The Omburu BESS Project (with 51 MW/51 MWh capacity) is currently under construction, and it is expected to be completed in first quarter of 2026. Building on this experience, NamPower is also developing the Lithops BESS Project with a size of 45 MW/90 MWh, which will be financed by the World Bank. This project is envisaged to provide similar services on a larger scale and is part of NamPower’s broader strategy to integrate utility-scale storage into the national grid.
The project is currently in the procurement phase, with the prequalification of EPC Contractors expected to be launched in the fourth quarter of 2025.
Additionally, the 40MW Otjikoto Biomass Project (OBPS), outside Tsumeb in northern Namibia, is seen as complementary to NamPower’s cleaner energy transition.
“Importantly, the project has both macro and micro-economic benefits. On a national scale, it reduces dependence on electricity imports, strengthens energy security, and stimulates investment into the local energy sector. From a climate perspective, the plant is a low-carbon source of electricity that meaningfully contributes to Namibia’s decarbonisation pathway. We therefore see the Otjikoto Biomass Project as a critical enabler of Namibia’s energy transition,” says the NamPower MD.
TRANSMISSION MASTER PLAN
NamPower’s current Transmission Master Plan, covering the period from 2021 to 2025, outlines comprehensive expansion plans for the transmission network grid. The utility will soon provide an updated transmission master plan after the new Integrated Strategic Business Plan 2026-2030.
Haulofu says the Master Plan identifies development requirements for the next year, with annual updates to ensure alignment with the country’s evolving electricity needs.
“The plan involves the construction of new transmission lines and substations, and the upgrading of existing transmission infrastructure. These developments are essential to addressing internal supply limitations, accommodating future load growth, integrating new generation plants, and facilitating potential power transmission across the SAPP region,” the NamPower MD says.
400kV AUAS-KOKERBOOM TRANSMISSION LINE
The Auas-Kokerboom project aims to enhance system reliability, improve network stability and redundancy, and increase electricity transfer capacity between the northern and southern regions.
Substation work at Auas, which overlaps with the Auas-Gerus project (the 400kV Auas-Gerus Transmission Line was inaugurated in April 2024) has been completed to minimise costs associated with outages during commissioning. The Environmental Clearance Certificate for the line construction has been issued, and the line is currently under design by NamPower’s internal design team, pending final resolution of routes and wayleaves in several positions. The bid for the construction of the N$2 billion project is expected to be advertised in the last quarter of 2025.
400kV OBIB-ORANJEMUND TRANSMISSION LINE
The Obib-Oranjemund line, NamPower’s second interconnector to Eskom, is important for enhancing supply of security and grid stability. NamPower is responsible for designing and constructing the line from Rosh Pinah to the Orange River, while Eskom will be responsible for terminating the line at Oranjemund (on the South African side), completing their section and connecting it to NamPower’s portion of the interconnector as part of their scope.
NamPower’s design team has completed the design for the 92-kilometre line, and construction commenced in November 2024. Line construction was completed in May 2025. Work has commenced on the extension of the substation with completion expected in 2026. The project’s total cost will be about N$1.2 billion, with commissioning earmarked for May 2026.
220kV OTJIKOTO-MASIVI TRANSMISSION LINE
This N$150 million project has been deferred as part of financial prioritisation. The Environmental Impact Assessment process has been completed, and an Environmental Clearance Certificate issued. NamPower is currently busy with line design.
Other transmission projects include the 132/66kV Sekelduin Substation Development on the outskirts of Swakopmund and the 220/66kV Khomas Substation Development in Otjomuise, Windhoek. “While NamPower aims to achieve 80% self-sufficiency by 2030, as outlined in the National Integrated Resource Plan (NIRP), electricity imports are expected to continue—both to optimise the cost of energy mix and due to Namibia’s integration with the Eskom system. When projects like Kudu Gas, Baynes Hydro, and renewable export IPPs are operational, Namibia is expected to support the region and the Southern African Power Pool as a net exporter of electricity and will ensure security of electricity supplies from local sources,” says Haulofu.
