Namibia Power Report Q2 2016
BMI View: Namibia will not be producing enough electricity to cover demand during our forecast periodas political and pricing issues cause delays to new thermal capacity coming online. The delays will result inthe renewable power sector experiencing an increase in activity, as is evidenced by new solar and windpower investments.
Latest Updates And Structural Trends
Namibia has signed a Memorandum of Understanding with French firm, InnoSun, for a plannedconstruction of a wind farm near Lüderitz in the Tsau//Khaeb national park. The wind farm will havecapacity of at least 150MW up to 500MW.
The 35MW tender for a solar power plant in Mariental has been scrapped by the Namibian High Courtafter it found irregularities in the tender process.
We have revised our hydropower generation forecasts to 2.2TWh, down from 2.4TWh, to account forreduced rainfall as well as no new capacity forecast to come online within our forecast period
Due to a lack of other forms of generation coming online, our forecasts have been adjusted, withhydropower expected to remain Namibia's primary source of power, with over 80% share of totalgeneration throughout our forecast period
Construction of the Xaris Energy Gas-fired power plant in Erongo will reportedly start as soon as thepower purchase agreement (PPA) is finalised with NamPower
We have revised our total thermal generation forecasts since last quarter, with a reduction from 1TWh tojust under 0.4TWh, as we currently only factor in some oil-fired generation and the 120MW Van Eckcoal power plant.
The Namibian Mines and Energy minister has stated that Namibia will not experience any load sheddingin 2016, stating that the country has secured 300MW off-peak supply from Eskom in South Africa, withother small-scale solar and wind power projects reportedly planned to cover the rest of the deficit ingeneration.
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