Govt moves to avert electricity crisis

AS the pressure mounts for Namibia to provide for its own electricity needs, Government has pledged N$750 million over the next three years to get the Kudu Gas Project off the ground.

In her motivation of the National Budget for 2006-07 a week ago, Finance Minister Saara Kuugongelwa-Amadhila said Government was making this huge investment to avert an imminent power crisis due to power shortages throughout the southern African region. The N$250 million allocated for Kudu Gas represents one of the biggest single investments Government will make in infrastructure development this financial year.”These large investments towards the development of the Kudu gas power project are required to avert the imminent power crisis, which is induced due to the overall power shortage in our region.This commitment, even though it covers only a fraction of the total financing needs, shows Government’s commitment to the Kudu project,” said Kuugongelwa-Amadhila.One billion US dollars will be needed to fund the construction of the Kudu Gas Project.Power utility NamPower has found itself in a precarious spot since December, when the Koeberg nuclear power station in Cape Town, South Africa, experienced a breakdown in one of its units, which has still not been repaired.Until then, Namibia had been importing more than half of its electricity from South Africa through a ten-year agreement it has with South African power utility Eskom, which comes to an end by the middle of this year.Even when running at full capacity, Namibia’s own power stations are unable to meet the country’s 500-megawatt demand.In the past week, two regional electricity distributors in Namibia have published public notices informing customers of impending power interruptions as a result of the Koeberg breakdown.Erongo RED yesterday notified customers that it had put four contingency plans in place for load-shedding at Swakopmund, Walvis Bay and Henties Bay between March and July.One of these entails switching of every second streetlight in these towns, except in the central business areas and main routes, where they will remain on.Erongo RED also plans to introduce what is known as a “ripple control” system to regulate residential geysers.Should the energy crunch be severe, suburbs at the three towns could be without power for between four and eight hours at a time.In the unlikely event of a total power shortage to the region, local authorities, commercial and industrial customers will be encouraged to activate their own emergency supply in the form of standby generators or other sources.Erongo RED has assured critical services such as hospitals and water and sewerage plants that it will do all it can to avoid power interruptions.Next week, the Northern Electricity distributor Nored plans to hold information meetings for Government and private institutions and large power users to discuss the state of electricity supply and distribution in the area.The power situation is expected to reach a critical phase by next year, when demand in the region is expected to exceed the combined supply of 45 000 megawatt from the Southern African Power Pool.The imminent power shortage is most likely to affect Namibia, South Africa and Tanzania if no new generation plant is built by 2010.The envisaged Kudu Power Station has the potential to generate 800 MW using natural gas from the gas field 170 kilometres offshore from Oranjemund, allowing it to sell power to South Africa.”The rising oil prices and the increasing electricity demand in the SADC region are two challenges that Namibia will face in the near future and we have to be prepared to manage the risks,” Kuugongelwa-Amadhila said in her Budget speech.In the short term, she appealed for responsible energy consumption.All factors considered, NamPower is not expected to get the Kudu Gas Project off the ground before the end of 2009.The N$250 million allocated for Kudu Gas represents one of the biggest single investments Government will make in infrastructure development this financial year.”These large investments towards the development of the Kudu gas power project are required to avert the imminent power crisis, which is induced due to the overall power shortage in our region.This commitment, even though it covers only a fraction of the total financing needs, shows Government’s commitment to the Kudu project,” said Kuugongelwa-Amadhila.One billion US dollars will be needed to fund the construction of the Kudu Gas Project.Power utility NamPower has found itself in a precarious spot since December, when the Koeberg nuclear power station in Cape Town, South Africa, experienced a breakdown in one of its units, which has still not been repaired.Until then, Namibia had been importing more than half of its electricity from South Africa through a ten-year agreement it has with South African power utility Eskom, which comes to an end by the middle of this year.Even when running at full capacity, Namibia’s own power stations are unable to meet the country’s 500-megawatt demand.In the past week, two regional electricity distributors in Namibia have published public notices informing customers of impending power interruptions as a result of the Koeberg breakdown.Erongo RED yesterday notified customers that it had put four contingency plans in place for load-shedding at Swakopmund, Walvis Bay and Henties Bay between March and July.One of these entails switching of every second streetlight in these towns, except in the central business areas and main routes, where they will remain on.Erongo RED also plans to introduce what is known as a “ripple control” system to regulate residential geysers.Should the energy crunch be severe, suburbs at the three towns could be without power for between four and eight hours at a time.In the unlikely event of a total power shortage to the region, local authorities, commercial and industrial customers will be encouraged to activate their own emergency supply in the form of standby generators or other sources.Erongo RED has assured critical services such as hospitals and water and sewerage plants that it will do all it can to avoid power interruptions.Next week, the Northern Electricity distributor Nored plans to hold information meetings for Government and private institutions and large power users to discuss the state of electricity supply and distribution in the area.The power situation is expected to reach a critical phase by next year, when demand in the region is expected to exceed the combined supply of 45 000 megawatt from the Southern African Power Pool.The imminent power shortage is most likely to affect Namibia, South Africa and Tanzania if no new generation plant is built by 2010.The envisaged Kudu Power Station has the potential to generate 800 MW using natural gas from the gas field 170 kilometres offshore from Oranjemund, allowing it to sell power to South Africa.”The rising oil prices and the increasing electricity demand in the SADC region are two challenges that Namibia will face in the near future and we have to be prepared to manage the risks,” Kuugongelwa-Amadhila said in her Budget speech.In the short term, she appealed for responsible energy consumption.All factors considered, NamPower is not expected to get the Kudu Gas Project off the ground before the end of 2009.