WINDHOEK, Feb. 23 — Namibia’s state-owned power utility, NamPower, reported a loss before interest and tax of 2.3 billion Namibia dollars (about 155 million U.S. dollars) for the first time in years, the company’s 2021/2022 annual report shows.
This reporting cycle has seen revenue flattening against the backdrop of significantly expensive electricity imports, said NamPower Board Chairperson Daniel Motinga in a statement contained in the report Wednesday.
Consequently, there is a strategic shift from NamPower’s previous focus on power generation to the development of regional transmission infrastructure as a means of securing additional revenue streams, Motinga added. Despite the financial challenges, NamPower has continued to supply electricity to the national grid, ensuring that the country’s energy needs are met. The company has also initiated cost-saving measures, including the reduction of employee numbers, to mitigate the impact of the loss.
Namibia, like many African countries, faces challenges in ensuring a reliable and affordable electricity supply to its population. The country relies heavily on electricity imports from neighbouring countries such as South Africa, which can be costly due to fluctuations in exchange rates and supply disruptions.
To address these challenges, NamPower has embarked on a number of projects to increase local power generation, including the development of a 120 MW gas-fired power plant in Walvis Bay and the implementation of a solar photovoltaic (PV) power plant in the Omburu area. These projects, along with the focus on regional transmission infrastructure, aim to improve Namibia’s energy security and reduce reliance on costly imports. (Xinhua)
