Total Project Cost
Investment Required
Stakeholders
Countries
Project Overview
Description
Binational Project between Angola and Namibia, to construct a hydropower plant on the Kunene River to increase installed capacity of dispatchable renewable energy and to support the large-scale rollout of renewable energy in both countries.
Objectives
Increase installed capacity of dispatchable renewable energy in Angola and Namibia; support the integration of variable renewable energy sources through provision of balancing capacity; enhance energy security through diversification of generation sources; promote regional cooperation through joint development of shared water resources; reduce dependence on imported power; create employment opportunities during construction and operation; support economic development in both countries; and demonstrate the viability of large-scale renewable energy infrastructure in Southern Africa.
Strategic Importance
The Baynes Hydropower Project represents a strategic binational initiative to harness the hydropower potential of the Kunene River for the benefit of both Angola and Namibia. The project will significantly enhance energy security and grid stability in both countries while supporting their transitions to cleaner energy systems. By providing dispatchable renewable capacity, the project will enable the integration of larger amounts of variable renewable sources like solar and wind. The binational nature of the project demonstrates the potential for regional cooperation in addressing shared energy challenges and utilizing common resources efficiently.
Technical Specifications
Technology & Design
Large Hydro project with Francis Turbines for the Main Dam and S-type Kaplan turbines for the Regulating Dam. The project design incorporates modern hydropower technology adapted to the specific conditions of the Kunene River.
Capacity & Size
860 MW (Main Dam) + 21 MW (Regulating Dam). The Main Dam will have a storage capacity designed to optimize power generation while managing environmental flows.
Technical Details
The technical specifications will be finalized through the ongoing studies, but the current design envisions a large hydropower facility on the Kunene River with main and regulating dams to optimize power generation while managing downstream flows. The project will incorporate modern hydropower technology with environmental flow management capabilities.
Development, Implementation & Financial Details
Development Timeline
2008-2014 (Feasibility Stage); 2021-2024 (Updating Studies)
Latest Implementation Updates
UPDATED2025-07-08: SEFA approved a USD 800 000 preparatory grant for Baynes FEED & ESIA studies – https://www.africa-energy.com/news/sefa-baynes-prepare
2025-07: Current Status: Implementation Agreement signed;
Milestones Achieved: EIA for regulating dam commissioned Q2 2025–Q2 2026, road and grid access studies approved;
Financing Status: $800 K SEFA preparatory grant for FEED & ESIA;
Next Steps: Award EPC contract and mobilize construction financing;
Additional Doc: https://pp2.au-pida.org/wp-content/uploads/formidable/4/Draft-Final-PIM-Baynes-HPP-T-Lines-23June2020.docx
2025-07-08 — AfDB's SEFA approves a USD 800,000 grant to fund FEED and ESIA, advancing Baynes toward bankability and procurement readiness. [https://www.africa-energy.com/news-centre/article/angolanamibia-baynes-hydroelectric-power-plant-advancing-after]
Financing Structure
Public Financing (Angola:Namibia - 50:50). The project will be primarily financed through public resources from both countries, potentially supplemented by concessional financing from development partners.
Capital Structure
The project will utilize public financing from both Angola and Namibia on a 50:50 basis, likely combining sovereign debt and direct equity investments from the two governments.
Project Timeline
Start Date
January 2008
Expected Completion
December 2035
Development Timeline
2008-2014 (Feasibility Stage); 2021-2024 (Updating Studies)
Project Status History
Status 2020
Feasibility
Status 2022
Pre-Feasibility
Status 2024
Structuring
Additional Project Details
Preparation Funding Gap
USD 0.00M
Construction Timeline
5 years construction period (Main Dam); 2 years construction period (Regulating Dam)
Legal & Financial Advisors
White & Case (Legal), Greengate LLC (Financial), SMEC (Technical)
Market Analysis
Market Analysis
The power markets in both Angola and Namibia are characterized by growing demand and increasing integration of renewable energy sources. Both countries currently face power deficits and rely partly on imports. The dispatchable capacity from Baynes will complement the variable renewable energy developments planned in both countries.
Market Demand
Primary demand will come from Angola and Namibia, with potential secondary offtake by regional utilities through the Southern African Power Pool (SAPP). The project is sized appropriately to meet a portion of the growing demand in both countries, while supporting grid stability and renewable energy integration.
Key Stakeholders
Project Sponsor
Governments of Angola and Namibia
Key Parties
Governments of Angola and Namibia, Permanent Joint Technical Commission (PJTC) for the Kunene River Basin
Investors
To be determined. Current studies are funded by the governments of Angola and Namibia.
Contractors & Operators
To be determined through international competitive bidding following project structuring
Risk Assessment
General Risk Assessment
Construction and Forex Risks have been identified as major risk categories. The detailed risk assessment and mitigation strategies will be further developed as the project structuring advances.
Regulatory Risks
Tariff path uncertainty has been identified as a key regulatory risk. The project will require harmonized regulatory approaches between Angola and Namibia, particularly regarding tariff setting, environmental regulations, and water resource management.
Impact Assessment
Environmental Impact
Generates clean energy and reduces GHG emissions by lowering imports and reducing the dispatch of fossil fuel-based electricity. Comprehensive environmental impact assessments will be conducted to identify and mitigate potential negative impacts on the river ecosystem and surrounding areas.
Social Impact
Provides electricity access to clean energy, reduces power deficits, promotes economic growth in Angola and Namibia, and contributes to reducing electricity tariffs. The project will have significant positive social impacts through improved energy access and economic development opportunities, though resettlement impacts will need to be carefully managed.
Investment Opportunities
Private Sector Opportunities
While the project is structured as a public investment, there will be significant opportunities for private sector participation in construction, equipment supply, and potentially in operations and maintenance through structured service contracts.
Next Steps & Agreements
Next Steps
Government commitments to conclude the resettlement engagements with project affected communities; Funding for the immediate associated infrastructure (primarily providing road access to the two dam sites); Additional funding to conclude project structuring in 2025; Accelerated early engagements with lenders
Offtake Agreements
Utilities of Angola and Namibia, SAPP & Regional off-takers. Specific power purchase agreements will be established with the national utilities of Angola and Namibia, with potential for additional agreements with other utilities in the SAPP region.
Contact Information
Baynes PIU, Email: info@pjtc-cunene.org
