Namibia to invest N$17bn in Baynes hydropower project
Namibia has committed more than N$17 billion to the development of the Baynes hydropower project on the Kunene River, marking the largest energy investment in the country’s modern history. The project is the centrepiece of a new five-year strategic plan designed to expand domestic electricity generation and end the nation’s long-standing reliance on power imports.
The investment, detailed in the ministry of industries, mines and energy’s roadmap for 2025 to 2030, comes at a critical time for the Southern African nation. With demand for electricity surging from the mining, oil, gas, and emerging green hydrogen sectors, the government is under pressure to secure the national grid. The Baynes project is expected to anchor this long-term strategy, helping to push Namibia’s total installed capacity from 734 megawatts to 1,153 megawatts by the end of the decade.
A shared vision for the Kunene River
Developed as a joint venture with neighbouring Angola, the Baynes Hydropower Project involves the construction of a major dam roughly 48 kilometres downstream of the Epupa Falls. The mid-merit station is expected to produce around 600 megawatts of power, which will be split equally between the two countries. While the station will operate at full capacity during the wet season, the generators are designed to focus on peak periods during the dry months to ensure a steady supply when the grid is most strained.
Beyond its domestic impact, the project is a key pillar of the Programme for Infrastructure Development in Africa. Regional planners hope the dam will not only reduce power deficits but also increase the capacity of the Southern African Power Pool, allowing for more efficient energy trading across borders.
Bridging the energy gap in rural communities
While the hydropower project addresses large-scale industrial needs, the government’s plan also seeks to tackle energy poverty. More than N$6.4 billion has been allocated over the next five years to expand electricity access to rural and peri-urban areas. The ministry aims to increase the national electrification rate from 59.3% to 70% by 2030 through a phased rollout of new connections.
For communities living in sparsely populated regions where extending the national grid is not economically viable, the strategy relies on decentralised solutions. The government plans to deploy approximately 300 off-grid solar systems annually, including household kits and solar-powered water pumps. This approach is intended to provide immediate relief to schools and health facilities while reducing the reliance on conventional fuels.
Nuclear ambitions and price stability
The strategic plan also hints at a more diverse energy future, including a N$40 million allocation for the development of nuclear power. However, this funding is currently earmarked for the creation of regulatory frameworks and governance systems rather than the immediate construction of a plant. This long-term thinking is mirrored in the government’s approach to affordability; a N$2.5 billion provision has been set aside for an energy price equalisation fund, which will act as a buffer to stabilise tariffs for consumers against market volatility.
Despite the ambitious scope of the plan, officials remain cautious about the path ahead. Energy minister Modestus Amutse described the strategy as a "living tool" aimed at fostering local innovation and industrialisation, but the ministry’s leadership has acknowledged that success depends on overcoming significant hurdles.
Budget constraints, a lack of specialised technical skills, and existing infrastructure gaps remain the primary risks that could slow the transition toward energy independence.
