Concerns over power shortage

Namibia has raised concerns over future power supplies after South Africa's power utility, Eskom, announced it could no longer provide a steady supply of electricity. Eskom notified the Namibian Power Corporation (NamPower) last week that rising domestic demand in both countries had made it increasingly difficult to continue supplying electricity to the southwest African country. Namibia imports up to 50 percent of its power needs from Eskom. "Despite the exceptional willingness of Eskom to meet Namibia's power demand, a situation might arise that could force Eskom to reduce supply to Namibia," NamPower communications spokesman Chris Ndivanga said in recent statement. The country requires about 400 megawatts (MW), of which 240 MW is generated by the hydropower plant at Ruacana on the Kunene river along the border with Angola. One of three generators at the 40-year-old Ruacana plant broke down recently and repairs will take time, as parts have to be imported from abroad. Two smaller coal and diesel power stations at Walvis Bay and Windhoek have been reactivated, but the output was insufficient to meet the electricity demand of the country. Ndivanga noted that "though we do not anticipate rationing of power, the nation must be ready for any eventuality". Eskom announced last year that its surplus electricity supply capacity would run out by 2007, as power demands in South Africa were expected to increase by 1,200 MW per annum. The power utility has a capacity of about 40,000 MW, with exports mainly to Zimbabwe, Botswana and Namibia. Plans to develop the Kudu gasfield in the Atlantic Ocean off the Namibian coast near Oranjemund, with Eskom as a partner, will kick off next year with the construction of a gas-fired power plant to produce 400 MW by 2009 in the initial phase, and another 400 MW in the second phase, costing a total of N $6.5 billion (around US $1 billion). Namibia is expected to channel the surplus electricity from the plant mainly to South Africa.