Otjikoto Biomass Project: A Game Changer for Namibia’s Energy Security
Namibia has officially commenced construction of its first biomass power plant—an ambitious project valued at approximately N$2.64 billion and expected to be completed by the first quarter of 2027.The 40-megawatt Otjikoto Biomass Power Station (OBPS), located 12 kilometres north of Tsumeb, will generate electricity through the combustion of wood chips sourced from encroacher bush harvested in the surrounding areas.
This project comes at a critical time as Namibia faces two major challenges: a high dependency on imported electricity and widespread bush encroachment. With over 30 million hectares of land affected by bush encroachment, the OBPS is set to play a pivotal role in restoring millions of hectares of grassland savannah and enhancing soil carbon levels. Currently, Namibia imports between 60% and 70% of its electricity annually. Approximately 65% of these imports are sourced from South Africa, with the remainder supplied by neighbouring utilities ZESCO (Zambia) and ZPC (Zimbabwe). In response, the government has implemented several policies to boost domestic low-carbon energy generation and reduce reliance on imports.
The Otjikoto Biomass Power Station is poised to be a transformative project. It offers a sustainable, locally-sourced energy solution that will help meet growing electricity demand without imposing unrealistic cost burdens on consumers. As a flagship project for biomass-to-energy development, it will serve as a large-scale proof of concept for utilizing bush as a viable energy resource.
Spearheaded by NamPower, the national power utility, the OBPS is expected to catalyse further private sector investment in biomass power generation, particularly in other bush-encroached regions of the country. Beyond energy generation, the project is anticipated to stimulate the growth of Namibia’s bush harvesting sector, creating significant employment opportunities in rural communities and lowering operational costs associated with biomass collection.
Moreover, the project supports an enabling environment for future biomass-to-energy projects developed under Independent Power Producer (IPP) models, aligning with Namibia’s broader energy diversification goals.
The implementation of a national biomass energy strategy represents a smart, forward-thinking approach to leveraging Namibia’s abundant renewable resources, specifically bush encroachment as an energy asset. This strategy not only enhances energy security but also reduces dependence on imports and mitigates the risks associated with supply disruptions and price volatility.
