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Namibia Electric Power Transmission & Distribution (T&D) Infrastructure Industry Analysis
Current Scenario:
The electricity sector in Namibia is dominated by state-owned power utility NamPower, which is responsible for the generation, transmission, and distribution of electricity in the country. Namibia has a relatively small electricity market with a total installed capacity of 633 MW, of which about 53% is generated by coal-fired power plants, 27% by hydropower, and the remaining by solar and diesel-powered plants. Namibia is facing a significant challenge in meeting its electricity demand, as the country's electricity consumption has been growing at an annual rate of around 4%, while the installed capacity has not been increasing at a commensurate pace. As a result, the country has been experiencing recurrent power shortages, which have resulted in load shedding and increased reliance on imports from neighboring countries.
Construction of New Projects:
Namibia has been investing in new power generation and transmission projects to address the power deficit. In 2019, NamPower commissioned the 44 MW Hardap solar power plant, which is one of the largest solar PV projects in the country. The country is also planning to increase its renewable energy capacity to 70% by 2030, and the government has set a target of achieving universal electricity access by 2025. To achieve these goals, Namibia is looking to attract private investment in the power sector and is implementing policies to promote renewable energy projects.
Major Drivers:
One of the major drivers of the Electric Power Transmission & Distribution Infrastructure industry in Namibia is the need to address the power deficit and ensure reliable and affordable electricity supply to meet the country's growing demand. Another driver is the increasing focus on renewable energy, as Namibia aims to reduce its reliance on fossil fuels and increase its renewable energy capacity. The government's target of achieving universal electricity access by 2025 is also expected to drive investment in the power sector.
Industry Outlook:
The Electric Power Transmission & Distribution Infrastructure industry in Namibia is expected to grow as the country invests in new power generation and transmission infrastructure. The government's focus on promoting renewable energy and attracting private investment in the power sector is likely to drive growth in the industry. The implementation of policies to promote renewable energy projects is expected to boost the development of solar, wind, and hydropower projects in the country. Additionally, the government's efforts to achieve universal electricity access by 2025 are expected to create new opportunities for the industry. However, the industry will face challenges in addressing the power deficit, improving grid reliability, and reducing electricity costs. Overall, the industry outlook in Namibia is positive, and there is significant potential for growth and development in the coming years.
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