29 Nov 2013 13:40pm
WINDHOEK, 29 NOV (NAMPA) - Negotiations with regional off-takers for 400 Megawatts (MW) of electricity which will be produced by the Kudu Gas-to-Power project, but will not be consumed in Namibia, are at an advanced stage.
It is expected that the Kudu Gas-to-Power project will produce 800 to 1 000MW of electricity, with 400MW to be reserved for local consumption and the rest available to be exported.
The first 400MW is expected to be commissioned by the last quarter of 2017, while the remaining 400MW will be by the first quarter of 2018.
NamPower Managing Director Paulinus Shilamba told a media briefing here on Tuesday they have made considerable progress regarding negotiations with South Africas Department of Energy as the procurer and that countrys power utility, Eskom as the buyer.
Shilamba could not provide figures as to how many MW Eskom is expected to procure, as negotiations in this regard have not yet been finalised.
He also noted that the Zambian Copperbelt Energy Corporation (CEC) has expressed interest in off-taking up to 300MW from the Kudu Gas-to-Power project through a Public Partnership Agreement (PPA) with NamPower.
In addition to the off-take, CEC is also keen to take up minority equity shareholding in the Kudu project.
We expect the final investment decision to be made by mid-2014, said Shilamba.
Namibia is currently importing between 60 and 80 per cent of its energy requirements from the region, while also depending on the availability of water at the Ruacana Hydro Power station, which increased its capacity with an additional unit of 85MW to a total installed capacity of 334MW.
The country imports energy from Eskom in South Africa, Electricidade de Mozambique (EDM), Zimbabwe Electricity Supply Authority (Zesa), Zambia Electricity Supply Corporation Limited (Zesco) and the Societe Nationale delectricite (SNEL) of the Democratic Republic of Congo.
Although several power-generation plants are planned, most of these plants are to start generating electricity after 2017 only due to construction lead times.
Namibia decided to go ahead with the execution of power-generation projects such as the Baynes Hydro Power and the Kudu Gas-to-Power project, which are only expected to generate power after the year 2017.
The Baynes Hydro Power station is set to cost at least N.dollars 13 billion, while the Kudu Gas project is estimated to cost at least N.dollars 13,8 billion.