Domestic energy sector to be boosted

The Omburu Battery Energy Storage System (Bess) project will be a game changer and a transformative leap in the Namibian energy landscape.

This was said by NamPower’s managing director, Simson Haulofu, at the contract signing ceremony with Shandong Electrical, Engineering and Equipment Group and Zhejiang Narada Power Source yesterday.

The agreement will officially kick off the 54MW Bess project’s execution phase.

The Omburu Battery Energy Storage System project situated near Omaruru in the Erongo region is being funded through a 20-million euro (N$400-million) grant from the KfW Development Bank on behalf of the German government.

Haulofu yesterday expressed gratitude to the National Planning Commission of Namibia and the German government, which supported and agreed to the implementation of the project.

“A big part of this milestone for the Omburu Bess project has been your trust, cooperation and shared dedication to make the first ever utility scale battery energy storage system in Namibia a success,” he said.

Haulofu said NamPower has adopted its Integrated Strategic Business Plan in 2020 in which the utility company has identified its strategic focus, application and prioritisation of resources for the next five years.

The business plan is in line with the Ministry of Mines and Energy’s determination on generation capacities.

“As part of NamPower’s commitment to this project we have made available N$100 million for the construction of the transmission interconnection, technical advisory, project management and owner’s engineer,” he said.

Haulofu said the project would help the government accomplish its goals as outlined in the national planning policies, including the fifth National Development Plan (NDP5) and the National Integrated Resource Plan (Nirp), by ensuring electricity supply security, cost-effectiveness and self-sufficiency.

“The project will also aid in addressing and supporting the renewable energy commitments prescribed in the renewable energy policy and national energy policy,” he said.

The Omburu Bess project would alleviate the challenge of energy demand, which currently leads to sourcing expensive emergency energy from Eskom or the Southern African Power Pool.

The executive director of the National Planning Commission, Wilhencia Uiras, said the project represents a pivotal step in achieving national energy goals.

“This project not only addresses the immediate needs of our energy sector, but also lays the foundation for a more sustainable and environmentally friendly energy landscape,” she said.

The Bess plant will assist in peak shifting, energy arbitrage, the provision of emergency energy, ramp rate and reactive power control, among others.

Construction work is planned to take place over 18 months, and the plant is expected to be operational by mid-2025.

During the energy performance contract (EPC) signing, Ulrike Metzger, the head of German Development Cooperation, said: “The Bess project will contribute to achieving the national energy policy target of generating 80% of the energy requirements from local sources and the renewable energy policy target of 70% by 2030.

“This is key in reaching nationally determined climate targets.”

Beatrice Lucke, the country director of KfW Development Bank in Namibia, added: “Electricity from regenerative energy generation, as well as electricity imports from the SAPP could be stored in the Bess, which could be supplied to customers during peak times and would offset fossil energy from the ageing local Van Eck coal power plant.”

From 1990 to date, the German Development Cooperation has invested about 1,6 billion euros (N$32,3 billion) in Namibia.

The KfW portfolio under implementation comprises 37 projects, with a total volume of 666,2 million euros (N$12,9 billion), while over 10 projects with a value of 300 million euros (N$6,6 billion) are in preparation.