Issue 9 February - May 2002

History
The company was established in December 1964 as the South West African Water and Electricity Corporation (SWAWEK), as a direct result of recommendations by the Odendaal Commission that the waters of the Kunene River at Ruacana be utilised to generate electricity. SWAWEK was registered as a private company wholly owned by the Industrial Development Corporation of South Africa. Because the waters of the Kunene River are shared by Angola and Namibia, any development utilising the resource has to be agreed upon by both country’s governments. So began the long negotiations process surrounding this development, which only reached conclusion in 1969. In the interim, SWAWEK had to honour its promises of affordable electricity and to do so, built a thermal power station consisting of three 30MW generators, on the outskirts of Windhoek, at a cost of R22 million.

In July 1996, the power utility’s name changed from SWAWEK to Nampower, marking a new era for the utility.
Nampower has traditionally been responsible for the generation, transmission and distribution of electricity as a bulk supplier. However global shifts—in an economic and political context—of the power industry has brought about changes that underline financial imperatives and not only technological advancement. The introduction of the Energy Act (Act 2000) further necessitated that NamPower reposition itself to meet the challenges of competition. The Act required the company to ring fence its core business activities, giving other players in the Electricity Supply Industry (ESI) the opportunity to enter the Namibian market, creating competition which will ensure price competitiveness to the end-advantage of the consumer. The transformation phase has served to make Nampower a commercially stronger, technically and technologically more innovative and customer orientated company.

Reconstruction process
According to the new structure Nampower will have four regulated business units, namely generation, transmission, distribution and single buyer. Non-regulated business units include the necessary support services essential in driving a company forward. The commercial arm, NamPower Investments consists of NamPower Properties and NamPower International, formed with the objective of strengthening the energy industry through energy related industries and activities conducted beyond Namibia’s borders, in countries such as Botswana and Angola.

Premier Electric will serve as NamPower’s distribution vehicle, allowing greater efficiency and focus in the operation and maintenance of the distribution business. NamPower will not play a dominant role in the distribution industry, but will commit to Premier Electric’s development of the industry through ongoing teamwork and support of Government and regional distribution companies.

Current and Future Projects
Construction of a 256km long, 400kV power line from Kokerboom substation to the proposed Obib substation
In 1997, a 400kV single circuit transmission line was commissioned to stretch over 900km from Eskom’s Aries substation near Kenhardt (South Africa) to the existing Kokerboom substation near Keetmanshoop, and on to the new Ausa substation near Windhoek. At the time of commission it was one of the longest power lines under construction in the world. The first leg of the project was completed in May 1999, and the second phase—which included construction of the Auas substation—was completed the following year. The line has particular significance in terms of the future export of electricity generated in Namibia, providing significant infrastructure to trade electricity with South Africa and other neighbouring countries, as soon as the Kudu Gas Project becomes operational.

The power line opened up great potential for development in the south of the country. As a result, NamPower was approached by the multi-million dollar Skorpion Zinc Mine to supply as much as 86MW of electricity to the mine each year, meaning an annual high load factor of approximately 95% of energy consumption (equal to at least one-third of the country’s total electricity usage). To facilitate this, construction on a new 256km long, 400kV power line from Kokerboom substation to the proposed Obib substation just outside Rosh Pinah will commence soon. At an estimated cost of N$350 million, the project will include the construction of a quad tern conductor 400kV-power line as well make provision for a 132/66kV substation. It is expected that the construction of both the line and the substation will be completed within a period of 20 months. At the Obib substation, the 400kV-power line will be stepped down to supply voltage of 66kV for direct usage by the mining operations. The project will also supply electricity to the NamWater base and booster stations along the Orange River and will be stepped down to a further 33kV for reticulation purposes. This will aid in driving the water pumps that will supply water for the various mining activities.

Construction of a 132kV-transmission line from Auas substation to Omaere substation
Due to the continual growth in demand for electricity as well as the possibility of supply to western Botswana, construction of a 132kV-transmission line from Auas substation near Windhoek to Omaere substation near the Botswana border, has already been completed. The cost of this line will be N$55 million. The construction of the line was won through competitive tendering by a consortium headed by Siemens.

Construction of a 275km twin pelican conductor 220kV transmission line to the coast, and a new indoor substation called Kuiseb
Projected studies carried out at some of the larger coastal town indicated an average annual increase of 5.4% in electricity demand over a period of 12 years, with the current electricity demand for the West Coast having almost reached the present transmission capacity of 95MW. To meet demand, NamPower has embarked on a N$250 million project that will see the construction of both the 275km, twin pelican conductor 220kV transmission line to the coast, and a new indoor substation called Kuiseb. The power line will extend from the coal-fired Van Eck Power Station near Windhoek to the 220/66kV Kuiseb substation, located 20km east of Walvis Bay. The estimated cost for the construction of the powerline in N$120 million, with a further N$130 million being estimated for the substation.

Possible construction of a 260km, 132/66kV power line from Omaere to Ghanzi
Negotiations continue between NamPower and its Botswana counterpart—Botswana Power Corporation—regarding the possible construction of a 260km, 132/66kV power line from Omaere to Ghanzi in neighboring Botswana. It is anticipated that if the go ahead is given, the cross border supply to replace diesel generation in western Botswana will cost in the region of N$100 million.

The Epupa Hydropower Project
This project proposed along the Kunene River is another major development in the pipeline. The intention is to build a 360MW hydro power station downstream from Epupa Falls. As the Kunene is shared with Angola, the governments of both countries have to agree on the final site for the plant’s construction.

Proposed construction of a 20–30MW hydro scheme at Divundu on the Kavango River
This initiative will assist with the growing power demand in the Kavango and Caprivi regions.

Potential for developments within the telecommunications industry
The newly constructed 400kV power line from Aries near Kenhardt (South Africa) to Kokerboom substation near Keetmanshoop offers potential for developments in the telecommunications industry due to the installation of fibre optics—suitable for high speed data transmission—along the power line.

Electrification of the agricultural belt in central Namibia
Still in the planning stages, NamPower is to invest N$50 million into the electrification of the agricultural belt in central Namibia. A potential 250 farms have been identified for qualification of the three-phase subsidised scheme, which will commence in 2002. It is estimated that the project will be completed by 2004 and that approximately 1300km of power lines will be constructed to supply electricity to farms.

For information on available tenders and procedures, visit http://www.nampower.com.na

Co-operation agreements
Of great importance is the consolidation of Namibia and South Africa’s future co-operation in terms of the vision on the Southern African Power Pool (SAPP).

General enquiries can be directed to
Nina Viall APR
Manager: Corporate Communications and Public Relations
Tel +264 61 205 4111
Fax: +264-61-232805
Email vailln@nampower.com.na