The Namibian electricity industry stands at a cross roads. Internationally high oil and commodity prices have had a ripple effect on the price of gas and coal. Energy prices are escalating at alarming rates. Global warming and a growing awareness of the damage generated by fossil fuels is seeing increasing pressure on countries to turn to other ways of generating energy. Within Namibia there are growing misgivings about the Van Eck dry coal fired power station on the outskirts of Windhoek. And Eskom, the South African power utility that supplies half of Namibia’s electricity, has not been able to keep pace with electricity demands in South Africa and is being forced to reduce power to parts of South Africa and neighbouring countries. Compounding this is the historic availability of cheap electricity from Eskom which has been an inhibiting factor to the construction of any new power stations in Namibia and to this day dominates the price expectations in Namibia. At the same time Namibia has very limited options with using the traditional generation technologies of coal fired, hydro or nuclear power. Namibia does not have any coal reserves that have been proven to be exploitable and must import coal. It is simply cheaper to import electricity from South Africa than import South African coal. Namibia is a very dry country which limits hydro options. Nuclear is an option but is constrained by high capital costs and a relatively small skills base.