1 May 2008
Windhoek — Walvis Bay could soon have a 950 MW Integrated Coal, Refinery Residue, Gas and Wind Power Station if the Electricity Control Board (ECB) approves a licence application that has been lodged at its offices by NamCoal, the company behind the project.
The Economist has not yet established who is behind NamCoal. But documents obtained this week show that the project is planned for the Dune 7 Heavy Industrial Area and Mile 7.
The application documents show that the method, to be used, is based on super critical technology with efficiencies above 45% with lower emissions than the sub critical technology. These include turbine generator set, boiler and operational issues such as load change, fuel flexibility and water.
"The wind technology is very well proven as evidenced by a wind power station at Mile 7 in Walvis Bay," NamCoal said.
NamCoal said the areas east of Dune 7 and Mile 7 have been environmentally cleared and set aside by the Municipality of Walvis Bay for heavy industry and wind turbines. The area is also on the national rail and road network.
The ECB has said there is a clear need for investment in generation and transmission in order for Namibia to become self-reliant in meeting local current and future electricity demand, especially in the face of booming new mining developments.
For now, the challenge to the electricity regulator is to ensure that the country attracts investors in power generation by making electricity tariffs competitive.
"At the current low prices, which are not cost reflective, Namibia will not be in a position to attract investors to invest in new generation projects as cost reflectivity is viewed as a prerequisite for private investors," Chief Executive Officer of the ECB, Siseho Simasiku, is on record as having said in April.
According to Simasiku, it is foreseen that electricity prices in Namibia, in particular, and the southern African region, in general, will continue to rise over the next five years.
This is mainly due to the fact that various capital projects need to be undertaken in generation and transmission in order for Namibia to become self-reliant in meeting its demand and move away from being a net importer.
"It is very clear from the energy crisis in the region that South Africa is no longer in a position to provide its neighbours with power unless it is emergency power at exorbitant prices," Simasiku said.
With the tariffs not being cost reflective, it will be very difficult to attract private investors or even financiers, he said.
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