Eskom signs electricity deal with NamPower

Eskom signs electricity deal with NamPower

Eskom on Thursday signed a five-year firm electricity sales agreement with Namibia’s national electricity utility, NamPower, at the 42nd Southern African Power Pool (SAPP) executive committee meeting in Maseru, Lesotho.

Eskom works to restore power supply to KZN homes
File photo

NamPower and Eskom have enjoyed a healthy, cordial, trade relationship through their bilateral agreements over the years.

Eskom said the new agreement was testimony to the long noble history of power trading between the sister utilities and also illustrates its commitment to powering the development of the Southern African Development Community (SADC) region.

Matshela Koko, Eskom interim chief executive, said in a statement that Eskom stands ready to supply electricity to the region, allowing the growth of our economies, creating an increased demand for electricity, which in turn will stimulate the regional power generation sector.

“Eskom has turned around and we are now open for business with surplus capacity available to empower economic growth. This agreement provides energy security to Namibia and allows for economic development and growth in the country without electricity availability concerns,” Koko said.

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“It is tragic that our region still struggle to provide access to electricity for all its citizens and to power their industries and mines, stunting economic growth and failing to provide employment for all of our people. Eskom believes that the challenge now is to focus on strengthening the transmission interconnection between the various countries to allow the sharing of the available power.”

NamPower said it would continue to employ all possible means, including demand side management measures, to ensure that the delivery of electricity supply services to the national economy is carried out in a sustainable manner.

“To supplement its generation capacity, improve its import portfolio and have diversified energy imports, NamPower has entered into a number of power purchase agreements (PPAs), of which the biggest import portfolio is with Eskom through this new bilateral agreement,” Mbuere ua Mbuere, NamPower general manager, said.

“Currently, NamPower has concluded a number of projects to establish renewable energy projects in Namibia and to enhance its local production.”

Eskom also said it intended to conclude agreements with other SAPP members before the end of the month. Long-term agreements are already in place with LEC of Lesotho and SEC of Swaziland.

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