The Namibian government is procuring energy storage products at the same time as its installed PV capacity is growing. Omburu is the country's first large-scale grid-side battery energy storage project and is set to become the largest energy storage project in sub-Saharan Africa. This will enable Namibia to release stored photovoltaic power when necessary, support grid stability and reduce Namibia's reliance on peak-load fossil fuel power generation capacity and expensive electricity imports. Plans to increase domestic clean electricity production leave room for future growth in battery storage in Namibia, but the market still has not embraced the “traditional” energy storage business model.
Namibia needs energy storage to support its power system. Namibia relies heavily on hydroelectric power, but climate change has caused fluctuations in rainfall patterns. The country is working to diversify its electricity mix to reduce its reliance on hydropower and electricity imports. By 2020, non-hydro renewables will account for 20% of total electricity generation, driven by increased PV capacity. Intermittency is becoming an issue as variable renewables make up a larger share of the power mix, and energy storage has the opportunity to provide reliable and flexible electricity.
The Omburu energy storage project is the first independent large-scale grid-side battery energy storage project in Namibia, funded by utility and government grants. The 58MW/75MWh lithium-ion battery project, which will be commissioned in the third quarter of 2023, will release stored photovoltaic power when needed. Given Namibia's vertically integrated electricity market, the construction of the project requires utility support and external financing. State-owned utility NamPower owns and operates the project and has received financial backing from German bank Kreditanstalt fuer Wiederaufbau to use it to stabilize the grid.
Namibia plans to increase energy storage capacity, but market participation still depends on policy. As the Namibian government updates its National Consolidation Resource Plan, the Namibian government may include orders for new energy storage installations to address intermittent issues. Given the government's ambitions, Namibia may launch plans in the future to attract international investment in energy storage.
