Eskom could pull plug on Namibia

ELECTRICITY imports from South Africa could be cut whenever power shortages are experienced in that country from August onwards, according to Mines and Energy Minister Erkki Nghimtina.

Responding to questions from DTA politician McHenry Venaani in Parliament on Thursday, Nghimtina said the existing power supply contract with South African power utility Eskom would expire in July and did not contain a clause that power could be cut to Namibia and other neighbours, should South Africa face a shortage. “From August 2007 onwards Eskom can suspend power supplies to Namibia, should their internal electricity demands exceed supply,” Minister Nghimtina told the House.”My Ministry has established a task force to deal with this issue in the short, medium and long term.The task force has nearly completed its work and a submission to Cabinet will be made soon.”Nghimtina said Eskom experienced power problems in 2005 and last year after a turbine at the Koeberg nuclear plant in the Cape Province broke down, and earlier this year, when another problem occurred at the same plant.NamPower had to reactivate the coal-fired Van Eck power station in Windhoek on both occasions.Namibia imports about 50 per cent of its electricity, coming mainly from Koeberg.South Africa is experiencing an increased local demand for electricity and Eskom has stated on several occasions that it cannot continue supplying electricity to other countries at the same scale.Nghimtina said negotiations on the envisaged Kudu gas-fired power plant were entering the “final round”.However, the developers of the offshore gas field have indicated a high selling price of gas to the power station and it would be partially fixed in US dollars.”This brings a huge burden to Namibia.If not managed correctly, it [the resulting electricity tariff] will burden future generations to come, as these prices have to be passed on to the customers for the next 22 years,” Nghimtina said.Making the Kudu power station a regional project by incorporating other potential buyers of the excess electricity would make the project more feasible, he said.”If a final investment decision can be taken within this year, construction of the Kudu project can proceed in 2008 and the power station could become operational by the end of 2010, beginning of 2011,” Nghimtina told the House.”From August 2007 onwards Eskom can suspend power supplies to Namibia, should their internal electricity demands exceed supply,” Minister Nghimtina told the House.”My Ministry has established a task force to deal with this issue in the short, medium and long term.The task force has nearly completed its work and a submission to Cabinet will be made soon.” Nghimtina said Eskom experienced power problems in 2005 and last year after a turbine at the Koeberg nuclear plant in the Cape Province broke down, and earlier this year, when another problem occurred at the same plant.NamPower had to reactivate the coal-fired Van Eck power station in Windhoek on both occasions.Namibia imports about 50 per cent of its electricity, coming mainly from Koeberg.South Africa is experiencing an increased local demand for electricity and Eskom has stated on several occasions that it cannot continue supplying electricity to other countries at the same scale.Nghimtina said negotiations on the envisaged Kudu gas-fired power plant were entering the “final round”.However, the developers of the offshore gas field have indicated a high selling price of gas to the power station and it would be partially fixed in US dollars.”This brings a huge burden to Namibia.If not managed correctly, it [the resulting electricity tariff] will burden future generations to come, as these prices have to be passed on to the customers for the next 22 years,” Nghimtina said.Making the Kudu power station a regional project by incorporating other potential buyers of the excess electricity would make the project more feasible, he said.”If a final investment decision can be taken within this year, construction of the Kudu project can proceed in 2008 and the power station could become operational by the end of 2010, beginning of 2011,” Nghimtina told the House.