Amutse demands urgent action on Baynes hydropower

Mines and Industries Minister Modestus Amutse has called for the urgent implementation of the long-delayed Baynes Binational Hydropower Project, warning that further delays in developing this strategic electricity generation infrastructure could undermine national and regional energy security. The project, Amutse said, is becoming critical, as reliable and affordable power supplies are prerequisites for economic growth and industrialisation.

Amutse made it clear that the time for prolonged feasibility studies and planning has passed, insisting that Namibia and Angola must now accelerate the project towards actual construction. Successfully implementing Baynes could strengthen electricity independence, improve investor confidence, and help secure the reliable energy foundation required for sustained industrial development.

Speaking during a bilateral meeting in Luanda, Angola, on Friday, Amutse emphasised that the multibillion-dollar hydropower development represents far more than another infrastructure investment.

Instead, it is a strategic intervention that can strengthen electricity supply security, reduce Namibia’s dependence on imported power, and support the industrial ambitions of the wider Southern African region.

“It has been an extremely lengthy process. It is now time to bring the development phase to a clear conclusion and move towards the construction of this much-needed energy infrastructure project,” Amutse declared.

The minister’s call for action comes against the backdrop of Namibia’s continued reliance on electricity imports from neighbouring countries, leaving the domestic economy exposed to regional supply constraints, fluctuating electricity costs, potential disruptions to cross-border power availability and volatile exchange rates.

For the domestic economy seeking to accelerate mining production, mineral beneficiation, manufacturing and emerging green industries, electricity security has become an increasingly important factor in investment competitiveness. The long-awaited Baynes project, planned along the Kunene River, which borders Namibia and Angola, is expected to provide approximately 600 megawatts of installed generation capacity, although the final configuration and delivery arrangements remain subject to project implementation decisions.

The project’s development would substantially expand the electricity generation infrastructure available to the two countries, while potentially strengthening electricity trading within the Southern African Power Pool (SAPP). Speaking in Luanda, Amutse acknowledged that Namibia’s existing regional electricity relationships remain valuable, but stressed that greater generation capacity is essential for long-term security.

“Namibia remains a net importer of electricity from its neighbours, and we are fortunate to benefit from strong, mutually beneficial regional relationships. This project is therefore a necessary enabler of energy security for our two countries and, by extension, for the wider region,” he said.

**Decades of delays **

The project’s long development history has become a major concern, especially as regional electricity demand continues to rise.

Initial studies on the proposed Epupa hydropower development date back to the 1990s, while feasibility investigations for the Baynes location have continued since 2008.

Nearly two decades after studies commenced at Baynes, construction has yet to begin. For Namibia, further delays could mean continued reliance on imported electricity and missed opportunities to develop dependable generation capacity to support energy-intensive industries.

The proposed Baynes project also holds strategic importance for regional electricity integration, particularly as Southern Africa seeks to diversify generation sources and strengthen interconnected electricity markets.

However, translating the project into operational infrastructure will require substantial financing, effective bilateral coordination and commercially sustainable electricity tariffs.

Minister Amutse confirmed that Namibia and Angola have agreed to pursue a public implementation model, with both governments seeking financing arrangements that would avoid imposing high costs on electricity consumers.

“Hydropower development is capital intensive. Our two governments have therefore resolved to develop this Project through a public implementation model, under which the required funding will be mobilised in a manner that supports competitive and affordable tariffs for end consumers,” Amutse explained.

Meanwhile, a Baynes Project Implementation Unit and its financial advisers have developed a funding strategy to submit to both governments for consideration. This structure will be particularly important because the project’s long-term economic benefits depend not only on generating additional electricity but also on ensuring the power remains competitively priced. Excessively expensive electricity could undermine industrial competitiveness and weaken the investment case for energy-intensive projects.

**Regional lifeline **

Amutse acknowledged the contributions of the two national electricity utilities and the Southern African Power Pool in positioning Baynes as a strategic regional generation project.

He also recognised technical and financial support from development partners, including the African Development Bank, Swedish and Korean funding institutions, and the African Legal Support Facility.

Beyond electricity generation, construction could create opportunities for local contractors, engineering firms, equipment suppliers and skilled workers, although the scale of these benefits will depend on procurement and implementation arrangements.

Importantly, the project could complement Namibia’s growing renewable energy ambitions by adding hydropower generation to a future electricity mix that increasingly incorporates solar and wind resources.

“My desire and expectation are that this Project should now move expeditiously from studies to real action. The time has come to translate the many years of preparation into implementation and, ultimately, the commencement of construction,” said Amutse.

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