This work has been done in the project where the main target is to evaluate the technology and economy to use bush biomass for power production in Namibia. The project has been financed by the Ministry for Foreign Affairs of Finland and the Ministry of Agriculture, Water and Forestry of the Republic of Namibia. The target of this study is to calculate the production costs of bush chips at the power plant using the current wood chip production technology and to look possibilities to develop production technology in order to mechanize production technology and to decrease the wood chip production costs. The wood chip production costs are used in feasibility studies, in which the technology and economy of utilization of wood chips for power generation in 5, 10 and 20 MW electric power plants and for power generation in Van Eck coal fired power plant in Windhoek are evaluated. Field tests were made at Cheetah Conservation Farm (CCF) in Otjiwarongo region. CCF is producing wood chips for briquette factory in Otjiwarongo. In the field tests it has been gathered information about this CCF semi-mechanized wood chip production technology. Also new machines for bush biomass chip production have been tested. A new mechanized wood chip production chain has been designed on the basis of this information. The wood chip production costs for the CCF semi-mechanized and the new production chain have been calculated. The target in the moisture content to produce wood chips for energy is 20 w-%. Keywords: bushes, harvesting, energy production, fuels, costs.