Boost for Namibia’s energy infrastructure
Power generation capacity enhanced
The Anixas II fuel oil power station in Walvis Bay allows Namibia to integrate more renewable energy projects in the future.
President Nangolo Mbumba inaugurated the 54MW Anixas II Power Station in Walvis Bay early in March. Built for N$1.28 billion, this state-of-the-art power station will boost Namibia’s generation capacity.
Speaking at the event, NamPower managing director Kahenge Haulofu said that although the utility continues to make significant investments in renewable energy projects such as solar, biomass, battery energy storage and the development of future wind projects, there is still a tremendous need for firm and dispatchable power on the grid.
“While technologies such as solar or wind will help alleviate some of Namibia’s future energy requirements, they cannot fulfil the dispatchable capacity requirements of the national grid. The purpose of the 54MW Anixas II Power Station, in addition to the existing 22.5MW Anixas Power Station, is to provide firm, dispatchable and reliable generation capacity to the Namibian grid, thereby improving security of supply and self-sufficiency.”
He added that Anixas II will support the Southern African Power Pool (SAPP) members’ ten-minute operating reserve requirements. “This means that it can respond in a short timeframe to support the SAPP network and allows Namibia to integrate more renewable energy projects in the future by serving as a dispatchable power station to support the grid and energy requirements in light of the intermittency of renewable energy facilities.”
Additionally, Anixas II is built as a dual-fuel power station, ready to receive natural gas once it becomes available in Namibia at a competitive price. “This will allow for greater risk mitigation in terms of fuel diversification, higher capacity factors, a reduction in emissions, and further reduction of system losses during peak times,” Haulofu explained.
The Engineering, Procurement and Construction (EPC) contract for the power station began in May 2022. Construction, testing and commissioning were completed in September 2024, with the final handover from the EPC contractor on 20 November 2024.
Job creation
The EPC contract amount initially stood at N$1.259 billion but was later reduced to N$1.252 billion. During construction, more than 390 temporary jobs were created, with all semi-skilled and unskilled labour sourced from the Namibian workforce. To date, approximately 18% of the EPC contract value (excluding forex hedging costs) amounting to N$183 million, has been spent on majority-owned Namibian companies.
Mines and energy minister Tom Alweendo stated that for too long, Namibia has depended on imported electricity to meet the needs of its people and industries. “This reliance has exposed us to risks beyond our control, such as price fluctuations, supply disruptions and constraints that hinder national development. Energy security is not just an economic necessity - it is a matter of national sovereignty. With this new addition, we take another step toward reducing our dependency and securing a future where Namibia generates more of its own electricity, ensuring stability, predictability, and affordability for our citizens.”
Alweendo emphasised that energy security alone is not enough. “Electricity must also be affordable for the average Namibian household and business. As we expand our generation capacity, we must remain committed to cost efficiency. Our energy policies must strike a balance between investment and affordability, ensuring that no Namibian is left in the dark due to prohibitive costs. Affordable electricity fuels economic activity, empowers small businesses, and improves the quality of life for all citizens.”
President Nangolo Mbumba echoed these sentiments, stressing the importance of expanding Namibia’s renewable energy resources and positioning the country as an electricity exporter to the region.
Diversified energy mix
“There is a need for a diversified energy mix - one that balances local generation with strategic imports - to ensure that Namibia remains resilient to global and regional energy shocks. However, self-sufficiency should not come at the cost of affordability. Electricity should serve as an enabler of socio-economic growth, not a hindrance to further investment and development. We must explore innovative solutions to make electricity accessible to communities who cannot afford it, whether through exports, cross-subsidisation or new technologies.”
Mbumba urged authorities to explore new avenues, from cost-effective renewable energy deployment to strategic imports, to ensure that the Namibian people and industries have access to reliable and affordable electricity. “I urge the Ministry of Mines and Energy, along with NamPower, to align all efforts to ensure that our electricity supply remains sustainable, secure and affordable.”
Speaking at the event, NamPower managing director Kahenge Haulofu said that although the utility continues to make significant investments in renewable energy projects such as solar, biomass, battery energy storage and the development of future wind projects, there is still a tremendous need for firm and dispatchable power on the grid.
“While technologies such as solar or wind will help alleviate some of Namibia’s future energy requirements, they cannot fulfil the dispatchable capacity requirements of the national grid. The purpose of the 54MW Anixas II Power Station, in addition to the existing 22.5MW Anixas Power Station, is to provide firm, dispatchable and reliable generation capacity to the Namibian grid, thereby improving security of supply and self-sufficiency.”
He added that Anixas II will support the Southern African Power Pool (SAPP) members’ ten-minute operating reserve requirements. “This means that it can respond in a short timeframe to support the SAPP network and allows Namibia to integrate more renewable energy projects in the future by serving as a dispatchable power station to support the grid and energy requirements in light of the intermittency of renewable energy facilities.”
Additionally, Anixas II is built as a dual-fuel power station, ready to receive natural gas once it becomes available in Namibia at a competitive price. “This will allow for greater risk mitigation in terms of fuel diversification, higher capacity factors, a reduction in emissions, and further reduction of system losses during peak times,” Haulofu explained.
The Engineering, Procurement and Construction (EPC) contract for the power station began in May 2022. Construction, testing and commissioning were completed in September 2024, with the final handover from the EPC contractor on 20 November 2024.
Job creation
The EPC contract amount initially stood at N$1.259 billion but was later reduced to N$1.252 billion. During construction, more than 390 temporary jobs were created, with all semi-skilled and unskilled labour sourced from the Namibian workforce. To date, approximately 18% of the EPC contract value (excluding forex hedging costs) amounting to N$183 million, has been spent on majority-owned Namibian companies.
Mines and energy minister Tom Alweendo stated that for too long, Namibia has depended on imported electricity to meet the needs of its people and industries. “This reliance has exposed us to risks beyond our control, such as price fluctuations, supply disruptions and constraints that hinder national development. Energy security is not just an economic necessity - it is a matter of national sovereignty. With this new addition, we take another step toward reducing our dependency and securing a future where Namibia generates more of its own electricity, ensuring stability, predictability, and affordability for our citizens.”
Alweendo emphasised that energy security alone is not enough. “Electricity must also be affordable for the average Namibian household and business. As we expand our generation capacity, we must remain committed to cost efficiency. Our energy policies must strike a balance between investment and affordability, ensuring that no Namibian is left in the dark due to prohibitive costs. Affordable electricity fuels economic activity, empowers small businesses, and improves the quality of life for all citizens.”
President Nangolo Mbumba echoed these sentiments, stressing the importance of expanding Namibia’s renewable energy resources and positioning the country as an electricity exporter to the region.
Diversified energy mix
“There is a need for a diversified energy mix - one that balances local generation with strategic imports - to ensure that Namibia remains resilient to global and regional energy shocks. However, self-sufficiency should not come at the cost of affordability. Electricity should serve as an enabler of socio-economic growth, not a hindrance to further investment and development. We must explore innovative solutions to make electricity accessible to communities who cannot afford it, whether through exports, cross-subsidisation or new technologies.”
Mbumba urged authorities to explore new avenues, from cost-effective renewable energy deployment to strategic imports, to ensure that the Namibian people and industries have access to reliable and affordable electricity. “I urge the Ministry of Mines and Energy, along with NamPower, to align all efforts to ensure that our electricity supply remains sustainable, secure and affordable.”
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