Today, May 6, 2024, Namibia celebrates the approval of its first-ever World Bank financed energy project, aimed at enhancing the reliability of the country's transmission network and enabling increased integration of renewable energy into the electricity system.
Satu Kahkonen, World Bank Country Director for Namibia, expressed the World Bank's support for Namibia's commitment to renewable energy, stating, “Namibia is a uniquely positioned regional leader in the transition towards a greener and more sustainable future. This project will support NamPower to develop future renewable energy projects.”
The project, totaling $138.5 million, will be implemented by Namibia's national electricity utility, NamPower. Kahenge S Haulofu, NamPower Managing Director, emphasized the significance of this investment, stating, “NamPower welcomes the financing approval of the project, as this is one of the major strategic and crucial investments towards Namibia’s electricity transmission network.”
Namibia, with its excellent renewable energy resources, currently has renewable capacity accounting for just over 30% of total generation. The project's focus on strengthening the power grid is essential for enabling the integration of more variable renewable energy sources. Additionally, the project aims to minimize outage risks, support load growth, and unlock opportunities for power trade in the Southern African Power Pool.
The funding from the IBRD Fund for Innovative Global Public Goods Solutions and the Green Climate Fund will be instrumental in developing the second utility-scale battery storage facility in Namibia. This investment will further facilitate the integration of large-scale renewable energy, reducing imports, improving grid stability, and managing demand peaks in Namibia.