The utility has said that the main driver behind the programme is the country’s surging power demand, which is being chiefly driven by its uranium mining operations. Nampower indicates that Namibia’s power demand has been rising by 3-5 per cent per year and is expected to triple by 2030. The investment programme is being targeted to increase the country’s attractiveness to mining companies, in the hopes of boosting the size of the sector. The utility’s managing director, Paulinus Shilamba, said that the programme will be financed through a combination of equity, loans from development finance institution, Nampower’s own balance sheet, government funding and a US$400m bond issue.

Namibia’s generating capacity currently stands at 393MW, compared to the 550MW demanded by its citizens and industries. The 60 per cent shortfall means that the country has to import 20 per cent of its electricity from South Africa and 40 per cent from other countries in the region. Like South Africa, power prices are expected to rise significantly. Mr Shilamba said that a 50 per cent hike in power tariffs by 2012 would be needed to meet costs. Nampower requested a 35 per cent hike in May, but was granted a rise of 18 per cent instead by the industry’s regulator.

US$1.1bn is expected to be spent building a 400-500MW hydroelectric facility on the boarder with Angola, which is expected to be complete in 2017, while another key area for investment is the Erongo region, where several uranium mines are likely to increase demand by 300MW by 2012.

Namibia is the world’s fourth largest uranium producer and its output is expected to increase to 52mlb annually by 2012, from the current 12mlb.

The launch of geothermal plants has proved difficult for less developed nations as separate companies are usually required to indentify locations for projects, build the facilities and operate the power plants. Mitsubishi and Reykjavik Energy plan to package their products and offer a “one-stop-shop” for developing countries. “We will offer services as a total package to under-developed countries, including funding, digging, construction and provision of operational know-how,” said Ichiro Fukue, Mitsubishi Heavy Industry’s senior executive vice president. “We hope this will help promote geothermal energy development,” he added. According to Mr Fukue, several African and Latin American countries as well as Indonesia and The Philippines have expressed interest in the tie-up.

Although no sales projections were given by the companies, they have said they aim to capture 50 per cent of the global geothermal market by 2014.

The order for this power plant project has been placed by the Independent Power Producer (IPP), Kribi Power Development Company (KPDC), an affiliate of AES Corporation. (NYSE:AES) The scope of supply includes Wärtsilä dual-fuel engines that will run primarily on gas. The power plant is scheduled to become fully operational before the end of 2011. The electricity generated will be fed to the national grid.

There were a number of factors behind Wärtsilä winning this contract. The high efficiency of Wärtsilä’s solution at any required load, its economical superiority and the flexibility of the dual-fuel engines all proved to be critical to the decision making process.

“The flexibility and operational cost advantages offered by Wärtsilä’s dual-fuel engines are being recognised on a global scale. The Cameroon national grid is primarily driven by hydropower, which is obviously a fluctuating energy source. Our engines provide that critical support flexibility that allows the customer to adapt to these grid load variations and enhance the reliability of the electricity supply system, especially during the dry season. Furthermore, the utility is able to switch operation of the Wärtsilä engines from gas to light fuel oil during maintenance of the gas supply platform”, says Mr Arnaud Gouet, General Manager, Wärtsilä Power Plants in South Africa.

This project follows the December 2009 inauguration of the 86MW Dibamba power plant in Yassa, Cameroon. The new power plant to be installed in Kribi, will bring the total power output supplied by Wärtsilä engines in Cameroon to nearly 450MW.

ABB will refurbish the stations that convert alternating current to direct current and back on the 560MW Inga-Kolwezi power transmission link. The 1700km system was built by ABB in 1982 and was, at that time, the world’s longest transmission line.

The link uses HVDC (high-voltage direct current) technology to transmit power from the Inga Falls hydropower station on the Congo River to the mining district of Katanga in the southeast of the country. It also enables excess power to be exported to the Southern African Power Pool countries.

ABB will be responsible for system engineering, including design, supply and installation of new thyristor valves, high-voltage apparatus and ABB’s MACH2 control and protection system. The project is scheduled for delivery in 2013.

”This refurbishment will enhance the reliability of the grid and ensure efficient transmission of hydro electricity across the region,“ said Peter Leupp, head of ABB’s Power Systems division. “We are delighted to contribute to the development of the power infrastructure in the country and remain committed to the harnessing of renewable energy.”

(Press release dated 15/02/10)

The issue of supply

The emergence of wind energy as a key contender in the world’s renewable energy mix has been given a considerable boost in recent years. It is successfully tackling its bug bears of intermittency whilst expanding its installed capacity. Indeed, according to the Swedish Academy for Sciences the problem of uneven wind conditions is far from unsurmountable. Building wind farms that cover a larger area, in favourable locations (especially offshore) with more constant wind strength and the storage of energy are all offered as possible solutions. It is hardly surprising then that worldwide generation capacity from wind sources has dramatically improved since the turn of the century.

According to the World Wind Energy Association (WWEA), worldwide wind generation capacity reached 121,188MW in 2008, a 29 per cent YoY increase on the previous year and has more than doubled since 2005 when capacity stood at 59,024MW. During the past year, around 27,261MW of new capacity was installed. This represents a 42 per cent expansion in the market for new wind turbines, up from 19,776MW the previous year. Ten years ago, the market for new wind turbines had a size of 2187MW.

YoY figures reveal a sustained and accelerating growth in the market as market expansion increased from 23.8 percentage points in 2005 via 25.6 and 26.6 percentage points in 2006 and 2007, respectively, to the 2008 increase of 29 per cent. However, the latest leap in average growth rate is due mainly to the fact that the two largest markets, the USA and China, showed growth rates far above the world average – 50 and 107 per cent, respectively. In addition, Bulgaria expanded its wind park by 177 per cent (from a low base) and above average growth was also recorded in Australia (82.8 per cent), Poland (71.0 per cent), Turkey (61.2 per cent) and Ireland (54.6 per cent). As a result, all wind turbines installed by the end of the year were generating 260TWh annually, the equivalent of over 1.5 per cent of global electricity demand.

Recently-released figures indicate that around the world 37,000MW of new wind farms were built last year, representing a 36 per cent increase on the previous year’s expansion rate. “The continued rapid growth of wind power, despite the financial crisis and economic downturn, is testament to the inherent attractiveness of the technology, which is clean, reliable and quick to install,” said Steve Sawyer, the Brussels-based Global Wind Energy Council’s secretary-general.

Increasing geographic diversification

Demand also became more geographically diversified as 80 per cent of the market for new wind turbines was accounted for by eight leading markets rather than the five in 2007 (see Table 1).

Altogether, 76 countries are using wind energy on a commercial basis. This includes two 2008 newcomers, Pakistan and Mongolia, which both installed larger grid-connected wind turbines for the first time.

European strength

European wind power was given a significant boost in January 2008 when the European Commission tabled a proposal to generate 20 per cent of the area’s energy using renewable sources by 2020 – a package endorsed by the European Council at the end of the year in its Renewable Energy Directive. To meet this target, over a third of European power demand will have to be supplied by renewables with wind power envisaged by the European Commission to deliver 12 per cent. The directive has been welcomed by the European Wind Energy Association. Its CEO, Christian Kjaer responded to the agreement: “For the first time, each Member State has a legally binding renewables target for 2020 along with an interim trajectory to follow. The grid and administrative barriers whose shadows loom long over wind energy developers will finally be tackled. Member States will be able to work together to meet their targets under stable market conditions, which will give investments in the wind energy sector a boost.”

The statistics relating to market size illustrate the point. In 2008, Europe still proved the largest market with a total installed capacity share of 54.6 per cent, far ahead of North America and Asia, which accounted for 22.7 per cent and 20.2 per cent respectively. (The remainder is divided by Australia Pacific – 1.5 per cent, Latin America – 0.6 per cent and Africa – 0.5 per cent.) In absolute terms, this translates to a total installed capacity in Europe of 64,719MW at the end of 2008.

Moreover, running counter to expectations, 2009 proved a positive year for the European wind industry. The latest statistics published by the EWEA reveal that last year was another bumper year for the sector. Of all new electricity generating capacity installed, wind power takes firmly the top spot with a 39 per cent share, well ahead of gas (26 per cent) and solar photovoltaics (16 per cent) and it does so for the second year running. Across the EU, 10,163MW of wind power capacity was installed during the year, a 23 per cent YoY increase, taking the total up to 74,767MW. Investment reached EUR13bn, including EUR1.5bn in offshore projects. With sites for land-based wind farms at a premium, Europe is looking increasingly at its offshore wind resources for further development as IFandP will explain in a forthcoming piece.

On a country-by-country basis, Germany and Spain are vying for the top spot with varying success. In 2008, Germany came “top of the class”, installing 1665MW of new capacity, with Spain a close second at 1558MW. However, positions switched last year when the Iberian country brought 2459MW online, compared with Germany’s 1917MW. Italy has maintained a comfortable third place, increasing its capacity by 1010MW and 1114MW in 2008 and 2009 respectively. Elsewhere, France is just ahead of the UK with new turbines to the tune of 1088MW. Nevertheless, the expansion of the UK market during 2009 is telling. While in 2008, around 569MW of capacity was added, the country brought an extra 1077MW online last year, expanding its wind park to 4051MW. Moreover, the government announced the introduction of a feed-in tariff for community-based renewable energy projects although its 5MW cap is to limit market growth to moderate rates.

The new EU member states also seized the opportunity to meet their wind power potential. Estonia nearly doubled its capacity to 142MW and a similar trend could be noted in Lithuania, which increased its capacity from 54MW to 91MW. Other former Eastern bloc countries with sizeable additions include Hungary (+74MW to 201MW), Poland (+181MW to 725MW) and Bulgaria (+57MW to 177MW).

While pioneer country Denmark fell back to eighth place from the no.4 spot it held five years ago, it remains a leading wind energy player with around 20 per cent of its electricity supply delivered by wind power.

The advance of wind power comes amidst growing concerns relating to Europe’s energy security. The region currently imports about 54 per cent of its energy and projections see this figure climbing to 70 per cent by 2030. Not only is this share increasing but a significant part of imports originates in some of the most unstable regions in the world, including the Middle East and Russia. Wind power offers an attractive antidote, enabling Europe to become more self-reliant in energy supply and, thanks to its fossil fuel-free operation, subject it less to the vagaries of international oil and gas prices. EWEA states that in 2008, wind power avoided fuel costs of EUR5.4bn in addition to CO₂ cost savings of EUR2.4bn.

Three mini-hydropower stations are expected to be commissioned this year, adding 33MW to the grid and increasing the country’s total generating capacity to an admittedly modest 413MW.

The country is recovering from a severe power crisis back in 2006 and remains subject to frequent supply outages, thanks to a combination of poor planning, inadequate investment and ageing infrastructure. In addition, Uganda’s businesses and households pay some of the highest prices for electricity in the region, but will get some relief after the authorities announced a 10 per cent reduction in tariffs in December 2009. Fortunately, it seems that the high price of power is attracting investment.

There is also light at the end of the tunnel, given the country’s 250MW Bujagali dam is expected to see its first 50MW come online in 2011. When complete, the dam will make a sizable dent in Uganda’s current power deficit, which is estimated to be in excess of 300MW (Reuters)

Focusing on Egypt, power consumption reached 117TWH in 2009 with 113TWh produced by thermal power stations, accounting for 9.74 per cent of the MEA region. By 2014, they predict that the country will account for 163TWh or 9.80 per cent of the region’s power generation, including a 14TWH theoretical surplus. Output from thermal power stations is expected to account 8.95 per cent of the region’s total electricity supply.

The forecast is primarily based on wind turbines of 600kW, 660-850kW and units above 850kW in rated output.

Although the consultancy admits that wind power has yet to make a significant contribution to power generation on the African continent, it maintains that there is now greater public pressure to make investments in renewable energy.

“The success of the wind power markets in Europe and the US has convinced many governments that wind power can assist in alleviating some of the power shortages in the continent,” energy analyst Sipha Ndawonde added. Wind power projects of 120-300MW have been announced in Kenya, Tanzania, Ethiopia and South Africa and interest in the sector is growing in Algeria, Tunisia and Morocco. However, Ndawonde notes that in many African countries, power generation remains the business of monopoly.

“Moreover, there are other restraints such as aging infrastructure, over-reliance on single feedstocks for power generation, and the lack of capital for electrical infrastructure refurbishment. This has resulted in many countries failing to meet the rising electricity demand,” he added (Engineering News)