On 7 December 2021, KfW Development Bank, the National Planning Commission and NamPower signed a grant agreement for 20 million Euro (approx. 400 million NAD) towards the implementation of the first utility scale Battery Energy Storage System (BESS) in Namibia, and the Southern African region at large.

The grant funds committed by Germany are earmarked for the construction of a 54 MW / 54 MWh BESS Plant that will be situated at the Omburu Substation, located 12km south-east of Omaruru, Erongo Region.

NamPower will contribute approx. 100 million NAD to ensure the total project cost of around 500 m NAD are fully covered. The BESS plant will assist in peak shifting, energy arbitrage, provision of emergency energy, ramp-rate and reactive power control amongst others.

After an elaborate tendering and evaluation process, NamPower signed the EPC contract with Shandong Electrical, Engineering & Equipment Group Co., Ltd and Zhejiang Narada Power Source Co., Ltd JV on 13 December 2023.

Construction work is planned for 18 months and the plant is expected to be operational by mid 2025.

During the EPC award signing ceremony, Ms. Ulrike Metzger, Head of German Development Cooperation remarked that “the BESS Project will contribute towards achieving the National Energy Policy target of 80% of the energy requirements from local sources, the Renewable Energy (RE) Policy target of 70% by 2030, and that it is key in reaching Nationally Determined Climate targets. ”

Her words were echoed by Ms. Beatrice Lucke, Country Director of KfW Development Bank in Namibia, saying that “electricity from RE generation as well as electricity imports from the Southern African Power Pool (SAPP) can be stored in the BESS which can be used to supply customers during peak times and would offset fossil energy from the aging local Van Eck coal power plant.”

The Managing Director of NamPower, Mr Kahenge Simson Haulofu, further said that the electricity grid in Namibia will be stabilized as short and medium-term power fluctuations from RE generation can be load-followed by the storage system. Given the planned growth of RE, this will ensure a stable power supply in the long term and create good production conditions for future growth and economic development. Thus, the BESS will have a positive impact on the investment climate for Independent Power Producers (IPPs) and contribute to creating new income and employment opportunities and will assist in the overall reduction in the cost of energy to the customer.“

German Development Cooperation 1990 - 2023

From 1990 to date , investment by the German Development Cooperation in Namibia amounts to EUR 1.6 billion (approx. NAD 32.3 billion). The KfW portfolio under implementation comprises 37 projects with a total volume of EUR 666.2 Mio (approx. NAD 12.9 billion), while over 10 projects with a volume of approx. EUR 300 Mio. (approx. NAD 6.6 billion) are under preparation.

Caption: A Namibian flagship project takes center stage. German development bank KfW, the NPC and NamPower congratulate the EPC contract winning partners, Mr. Benny Jin, Shelmon Chu and Qiao Weijian on the construction of the BESS project worth 500m NAD, which will contribute towards climate change by strengthening the expansion of Renewable Energies in Namibia.

Pictured above, Mr. Ben Mingeli (NamPower), Ms Taleni Mabakeng (NPC), Ms Zoe Nambahu (NamPower), Mr. Kahenge Simson Haulofu (MD of NamPower), Mr. Shelmon Chu (SDEE), Ms Ulrike Metzger (German Embassy), Ms Beatrice Lucke (KfW), Mr Benny Jin (SDEE), Mr. Qiao Weijian (Narada) and Mr. Fred Bailey (NamPower)