The Namibia Power Corporation’s (NamPower) 40MW Otjikoto Biomass Power Station is projected to contribute between N$200 million and N$245 million annually to the economy of the Oshikoto region. This boost will primarily stem from the procurement of wood chips from local farmers and contractors, fostering economic development in the area.
“From an electricity standpoint, this base load power plant will enhance grid stability, operating around the clock and fulfilling nearly 7% of the national power demand. Economically, we expect annual fuel purchases to reach approximately N$245 million, with potential increases,” stated NamPower project manager Titus Haihambo.
NamPower has finalized agreements for a loan, as well as engineering, procurement, and construction contracts, along with woodchip fuel supply arrangements for the new power station.
“The groundbreaking is scheduled for November, with construction expected to take 24 months. We anticipate system start-up and commissioning around the second quarter of 2026, and commercial operations to begin in early 2027,” Haihambo added.
The company has secured contracts with four fuel harvesters for a seven-year term, ensuring a consistent supply of wood chips. One harvester is set to receive 30,000 tonnes annually, while the other three will each be allocated 50,000 tonnes.
Haihambo noted that the short-term fuel supply strategy is still being refined and will include contributions from communal areas and small to medium enterprises.
“The 180,000 tonnes we have earmarked are designated for long-term fuel supplies, while the remaining amount will be available for short-term suppliers. We have also obtained grant funding of €4 million to assist with harvesting,” he explained.
Allocations for these suppliers will range from 2,000 to 7,000 tonnes, pending final strategy approval. To alleviate the financial burden on smaller enterprises, NamPower will manage on-site chipping.
The 40MW biomass power station is expected to generate around N$21 billion in both microeconomic and macroeconomic benefits.
“The Otjikoto Biomass Power Station will deliver substantial social and economic advantages, creating jobs, supporting resettlement farms, and driving local and national economic growth,” Haihambo concluded.
