Eskom, Namibia sign power agreement

Friday, March 24, 2017

Pretoria - Eskom has signed a five-year electricity sales agreement with Namibia’s national electricity utility, NamPower, which will supplement generation capacity for South Africa’s neighbour.

The sales agreement was signed by the two entities at the 42nd Southern African Power Pool (SAPP) executive committee meeting in Maseru, Lesotho, on Thursday.

“Eskom has turned around and we are now open for business, with surplus capacity available to empower economic growth. This agreement provides energy security to Namibia and allows for economic development and growth in that country without electricity availability concerns,” Eskom Interim Chief Executive Matshela Koko said.

The new agreement is testimony to the long, noble history of power trading between the sister utilities and also illustrates Eskom’s commitment to powering the development of the Southern African Development Community (SADC) region. 

NamPower and Eskom have enjoyed a healthy, cordial trade relationship through their bilateral agreements over the years.

The power supply situation in the region is currently under control. NamPower will continue to employ all possible means, including demand side management measures, to ensure that the delivery of electricity supply services to the national economy is carried out in a sustainable manner.

NamPower’s General Manager for Energy Trading, BJ Mbuere ua Mbuere, said the utility has entered into several power purchase agreements to supplement generation capacity.

“To supplement its generation capacity, improve its import portfolio and have diversified energy imports, NamPower has entered into a number of power purchase agreements (PPAs). The biggest import portfolio is with Eskom through this new bilateral agreement.

“Currently, NamPower has concluded a number of projects to establish renewable energy projects in Namibia and to enhance its local production,” said Mbuere ua Mbuere.

Meanwhile, Koko expressed concern that the region still struggles to provide access to electricity for all its citizens.

“It is tragic that our region stills struggles to provide access to electricity for all its citizens and to power their industries and mines, stunting economic growth and failing to provide employment for all of our people.

“Eskom believes that the challenge now is to focus on strengthening the transmission interconnection between the various countries to allow the sharing of the available power,” said Koko.

Eskom said it stands ready to supply electricity to the region, which will allow for economic growth that will create an increased demand for electricity. This, said Koko, will in turn stimulate the regional power generation sector.

Eskom intends to conclude agreements with other Southern African Power Pool (SAPP) members before the end of the month. Long-term agreements are already in place with Lesotho Electricity Company (LEC) and Swaziland Electricity Company (SEC). – SAnews.gov.za

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