Diaz Wind Farm raises hopes of cheaper electricity

Namibians expect electricity prices to fall as more wind and solar energy projects come online, the governor of the ǁKharas Region, Dawid Gertze, said at the inauguration of the N$1.9 billion InnoVent Diaz Wind Farm south of Lüderitz on Friday.

“Our people want to see energy prices coming down with these new developments. My people want to experience improved living standards as we move forward,” Gertze said. Located in the Tsau//Khaeb National Park, the 50 MW facility comprises 11 wind turbines and is expected to strengthen Namibia's energy security, support industrial development and reduce reliance on electricity imports.

Gertze described the wind farm as a significant step towards energy self-sufficiency and a foundation for Namibia's industrial ambitions. “We are harnessing the power of wind in the ǁKharas Region to accelerate Namibia's industrial future. This project supports the country's Sixth National Development Plan by providing clean electricity for green hydrogen and industrialisation in Lüderitz,” he said. Gertze added that the project could help reduce costly electricity imports and move Namibia closer to its target of 1,153 MW of national generation capacity.

Cheaper than petrol - Gregoire Verhaeghe, honorary consul of Namibia in Lille, France, and chairman of InnoVent, said wind-generated electricity offered a cheaper alternative to electricity produced using petrol-powered generators.

“Wind energy offers a considerably cheaper alternative to petrol-powered generation. The price of a litre of petrol is N$27. A car will get approximately three kilowatt-hours of power from burning one litre of petrol. This means we get one kilowatt-hour of energy at a cost of N$9 per litre of petrol. The power purchase agreement between InnoVent and NamPower ensures that electricity generated by Diaz is sold at less than N$1,” Verhaeghe said.

The Diaz Wind Farm was expected to supply about 6% of Namibia's total electricity consumption, adding that similar projects could be developed elsewhere in the country. Each turbine at the facility has a capacity of about 6 MW, he said. Electricity could also be traded across national borders through the Southern African Power Pool. “There is a lot of space and wind, and this process can be replicated quite easily. It is up to the government to scale up development. We already have an idea for a 560 MW project that we would like to name after Ben Amathila, if he permits,” Verhaeghe said.

The envisioned 560 MW “Amathila” project would comprise 60 turbines between Pomona and Gabis, with north and south collector stations. A new 400 kV transmission line, approximately 140 km long, would carry electricity to the Obib substation, where it would connect to Namibia's 400 kV transmission backbone and the interconnection with South Africa.

Safe and reliable supply - Dr Tjama Tjivikua, acting chairman of the Electricity Control Board (ECB), urged the developers to continue investing in local employment, skills transfer and enterprise development throughout the wind farm's 25-year lifespan.

“Consumers want a reliable energy source supplied at a fair price. A nation that powers itself shapes its own future and can industrialise faster,” Tjivikua said. He described the inauguration as a significant milestone for Namibia's energy sector, saying the country had considerable scope for greater private-sector participation in electricity generation.

Tjivikua said Namibia needed to prepare for an electricity sector with more independent power producers and transmission providers.

“It is a controversial topic at this point, but we cannot restrain the market because we think one way,” he said. He added that the ECB's Modified Single Buyer (MSB) market model created opportunities for independent power producers and qualifying customers to trade electricity directly. “Through our net-metering and distributed-generation rules, households and businesses can now generate their own electricity and even feed surplus power into the grid,” he said.

Tjivikua said the ECB's grid code and licensing framework continue to evolve to ensure that new power plants are connected to the national system safely and reliably. “Policies on paper do not light homes or fuel cars. My charge to the management of the ECB and our board is that every policy we adopt must come with an implementation strategy, and our strategies must serve one overriding goal: expanding Namibia's own energy supply,” he said.

Investment and economic growth - Nelson Lucas, Standard Bank Namibia's head of corporate and investment banking, said the project marked an important step in Lüderitz's emergence as an economic growth centre.

“The most meaningful impact of this project will be measured not only in megawatts generated but also in the opportunities it unlocks across our economy, from attracting investment and enabling business growth to creating jobs, strengthening communities and supporting Namibia's long-term prosperity,” Lucas said. He added that the growing diversity of Namibia's electricity generation sector was creating opportunities for investment, innovation and partnerships while supporting the development of local skills.

Martin Inkumbi, chief executive officer of the Government Institutions Pension Fund (GIPF), said the project's significance extended beyond electricity generation.

“Diaz is expected to become Namibia's largest wind farm, supplying more than 220,000 MWh of clean electricity annually to the national grid. The project will help Namibia move closer to electricity self-sufficiency,” Inkumbi said. He said GIPF's investment assessment had identified renewable energy and greater energy independence as important reasons for supporting the project. “Every additional megawatt generated domestically strengthens our energy security and increases the productive capacity of our economy. Reliable energy supports mines, businesses, industries, hospitals, households and future investment,” he said.

Inkumbi said the project had created between 100 and 150 jobs during construction, with between 10 and 20 permanent operational positions expected. It had also supported skills transfer and local economic activity.