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Full meaning African Union Community of Sahel–Saharan States Common Market for Eastern and Southern Africa Economic Community of West African States Foreign direct investment Gross domestic product Inclining block tariff(s) International Monetary Fund Independent power producer Kilowatt Kilowatt hour Liquid petroleum gas Megawatt Pay as you go Power purchase agreement Private public partnership Standard and Poors Global Ratings Sub-Saharan Africa Transmission and distribution Time of use West African Economic and Monetary Union United Nations Industrial Development Organization Value added tax World Bank Regulatory Indicators for Sustainable Energy Projection for 2030 2017/2018 reporting year SSA average includes South Africa. Calculation for SSA average and country data: Total consumption (2016) / total population (2016). SSA average: 18% This includes diesel, kerosene and gasoline subsidies. Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu Rates and tariffs were converted with the average exchange rate to the Euro in April 2020. Exchange rates available from ec.europa.eu

Energy Sector

Investment Overview
Namibia’s heavy reliance on hydropower, coupled with a severe drought in 2019, meant that the country’s total installed capacity was only operating at an average of 40%. To meet demand, the country is reliant on imports. The national electrification rate is almost 60%, which is significant considering how sparsely populated the country is. The small population also results in high per capita electricity consumption, amounting to 1,650 kWh annually, more than four times the sub-Saharan Africa average.

NamPower tariffs are below €0.10/kWh even for low-voltage consumers, which compare well to other economies in the region. Average transmission and distribution technical losses across the various T&D companies are exceptionally low at half the sub-Saharan Africa average, amounting to about 9.1% of generation.

Peak demand is expected to increase by more than 40% between 2018 and 2025 to around 930 MW. Some portion of this is likely to be driven by efforts to electrify the quarter of a million households currently without electricity. Installed capacity is expected to grow to 1,138 MW by 2030.

Namibia’s energy sector has had limited private sector participation in the past and has been characteristically state-owned. Recent reforms and restructuring efforts, however, are creating an increasingly attractive private operating environment and subsequent investment opportunities. Private sector participation is allowed across generation, transmission and distribution components of the electricity supply sector, although NamPower still has a monopoly on electricity transmission. Direct transactions between IPPs and local distributors are also allowed, albeit subject to specific conditions and limitations. After concluding several PPAs in 2019, the country’s energy sector is rapidly growing its ability to engage the private sector.

NamPower continues to procure more capacity from IPPs. In 2019, it announced a 20 MW solar project that will be tendered to an IPP. This forms part of the entity’s 2019 - 2023 plan to add several new plants to the country’s capacity, many of which will be developed by IPPs and the national Renewable Energy Feed In Tariff (REFIT) programme. Several REFIT projects were inaugurated in 2019 and 11 are already operating by the end of the year.

Structure

Namibia’s energy sector has historically been characterised by a distinct lack of private sector participation. More recently, the sector has undertaken several reforms to attract IPPs and create a favourable investment environment. Key actions include establishing a transparent tariff-setting process and the horizontal consolidation of more than 70 distributors into five regional electricity distribution companies (REDs), all of which is overseen by the sector regulator. REDs are predominantly owned by the state, however private sector ownership is allowed and does occur, usually by mines and farmer cooperatives.

In 2019, the country’s cabinet approved a modified version of its current single buyer model. A key feature of the updated model is that it allows for IPPs and transmission customers, which comprise large mines, REDs and other supply points connected directly to the transmission grid, to transact directly for the supply of electricity. This means transmission customers will be able to buy up to 30% of their energy directly from private generators without the need for an intermediary.

By the end of 2019, NamPower and REDs have signed 26 PPAs with IPPs. 14 of these are small IPPs from the Renewable Energy Feed in Tariff (REFIT) programme, expected to invest a total of around €100 million in the sector.
Generation:

NamPower, the vertically integrated state-owned utility, operates the majority of generation infrastructure. By the end of 2019, this amounted to about 70% of installed capacity. IPPs were operating about 22% of total installed capacity, while captive power plants were responsible for approximately 8% of total installed capacity.

Transmission:

NamPower has a monopoly in transmission. In 2018, its transmission network covered 11,673 km.

Distribution:

NamPower is involved with electricity distribution, alongside three regional distribution companies and local authorities. NamPower's distribution grids stretched 22,390 km by the end of 2018. Regional distribution companies include NORED, CENORED and Erongo RED. Two additional distribution companies have been proposed. Local authorities, for example the City of Windhoek, are also tasked with last-mile distribution.
NamPower is the national state-owned utility in charge of generation and transmission. The utility reports to the Ministry of Mines and Energy and is regulated by the Electricity Control Board.

Regional Electricity Distributors (REDs) include Northern Regional Electricity Distribution (NORED), Erongo Regional Electricity Distribution (Erongored) and CENORED. Proposed distributors include Central RED and Southern RED. The REDs are predominantly state-owned.
The Electricity Division of the Ministry of Mines and Energy is engaged in coordinating, planning, managing project financing and implementing national electricity programmes with emphasis on rural electrification programmes and power generation projects. It also monitors the electricity supply industry (ESI) restructuring through policy formulation and implementation.
The Electricity Control Board (ECB) is a statutory regulatory authority established in 2000. Among its main responsibilities are the regulation of most aspects of the electricity sector, such as tariff setting and the issuing of licences.
The Renewable Energy Industry Association of Namibia is an advocacy organisation for renewable energy in Namibia.

Key Actors

Gridfinder Map
Transmission (OSM)
Distribution (predicted)
Electrification targets
Utility/distributor
NamPower is the national state-owned utility in charge of generation and transmission. The utility reports to the Ministry of Mines and Energy and is regulated by the Electricity Control Board.

Regional Electricity Distributors (REDs) include Northern Regional Electricity Distribution (NORED), Erongo Regional Electricity Distribution (Erongored) and CENORED. Proposed distributors include Central RED and Southern RED. The REDs are predominantly state-owned.
Ministry (Ministries)
The Electricity Division of the Ministry of Mines and Energy is engaged in coordinating, planning, managing project financing and implementing national electricity programmes with emphasis on rural electrification programmes and power generation projects. It also monitors the electricity supply industry (ESI) restructuring through policy formulation and implementation.
Regulator
The Electricity Control Board (ECB) is a statutory regulatory authority established in 2000. Among its main responsibilities are the regulation of most aspects of the electricity sector, such as tariff setting and the issuing of licences.
Others
The Renewable Energy Industry Association of Namibia is an advocacy organisation for renewable energy in Namibia.

Tariffs

Tariff components
Low voltage
Consumption Charge (€/ kWh):
€0.09

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Basic Capacity Charge (€/amp/month):
Residential: €0.28
Basic commercial: €0.28

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Reserved Capacity Charge (€/amp/month):
Other LV small power users: €43.80 (average across amp rating categories)
Other LV large power users: €0.28

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Service Charge (€/month):
Other LV small power users: €27.42
Other LV large power users: €68.48

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Demand Charge (€/kW/month):
Other LV large power users: €13.53

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Demand Charge (€/kVA/month):
Other LV large power users: €12.37

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
ECB Levy (€/kWh):
Variable, included in consumption charge
NEF Levy (€/ kWh)
Variable, included in consumption charge
Tax (%):
15% VAT, included in consumption charge and other charges
Medium voltage
Consumption Charge (€/ kWh):
€0.07

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Demand Charge (€/ kW/month):
Non-TOU: €11.54

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Demand Charge (€/kVA/month):
Non-TOU: €10.53
TOU (<33kV): €5.18

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Service Charge (€/month):
Non-TOU: €55.35
TOU (<33kV): €519.57

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Point of Supply Charge (€/month):
TOU (<33kV) (<10MVA): €250.92
TOU (<33kV) (>10MVA): €340.64

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Network Access Charge (€/kVA/month):
TOU (<33kV): €4.82

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
ECB Levy (€/ kWh):
Variable, included in consumption charge

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
NEF Levy (€/ kWh)
Variable, included in consumption charge

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Tax (%):
15% VAT, included in consumption charge

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
High voltage
Consumption Charge (€/ kWh):
€0.07

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Demand Charge (€/kVA/month):
TOU (>33 kV): €4.98

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Service Charge (€/month):
TOU (>33 kV): €519.57

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Point of Supply charge (€/month):
TOU (>33 kV) (<10 MVA): €250.92
TOU (>33 kV) (>10 MVA): €340.64

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Network Access Charge (€/kVA/month):
TOU (>33 kV): €4.64

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Tax (%):
15% VAT, included in consumption charge

Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.
Note that these are NAMPower tariffs.
Average retail tariff by consumption category
Low voltage (€c/ kWh)
Average LV
9
Residential (average across categories)
9.2
Commercial (average across categories)
9.7
Water Pumping (average across categories)
8.7
Other LV (average across categories)
8.7
Note
Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.

Note that these are NAMPower tariffs.
Medium voltage (€c/ kWh)
Average MV
6.5
Commercial Non-TOU
5.9
Miscellaneous Non-TOU
5.9
TOU (<33kV; average of peak, standard and off-peak; high demand season)
8.1
TOU (<33kV; average of peak, standard and off-peak; low demand season)
5.7
TOU (<33kV; average of peak, standard and off-peak; single season)
6.3
Note
Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.

Note that these are NAMPower tariffs.
High voltage (€c/ kWh)
Average HV
6.6
TOU (>33kV; high demand season; average of peak, standard and off-peak)
8
TOU (>33kV; low demand season; average of peak, standard and off-peak)
5.6
TOU (>33kV; single season; average of peak, standard and off-peak)
6.1
Note
Tariffs will remain the same for 2020/2021 based on a decision by the Electricity Control Board in April 2020.

Note that these are NAMPower tariffs.
Is the retail electricity tariff subject to periodic review?
Yes
The Board of Directors of the Electricity Control Board (ECB) meet annually to review the tariff application of NamPower the national power utility. The reviews are conducted to “to ensure that utilities charge appropriate tariffs to collect sufficient revenue to enable reliable and efficient operations at affordable rates.” After a tariff reduction in 2019, the tariffs we increased by 3.9% for the 2020/2021 cycle.

Quality standards

The ECB regulates quality standards in the electricity supply industry through the 2004 Quality of Service Standards and the 2004 Quality of Supply Standards. Namibia Standards Institution (NSI) is the national standards body of Namibia. The institution is responsible for developing quality standards and enhancing product quality, industrial efficiency and productivity in Namibia. Relevant NSI standards include NAMS/IEC/TS 62257 (Recommendations for small renewable energy and hybrid systems for rural electrification), NAMS/NRS 052-1:2013 (Photovoltaic systems for use in individual homes) and NAMS/IEC 61215-1 (Terrestrial photovoltaic modules). NSI does not have any clean cooking standards in place as per the latest standards catalogue.

Explore the data

Electrification rates
% National electrification rate
2018
% Rural electrification rate
2018
% Urban electrification rate
2018
Total installed capacity (MW)
2030
1,138
2018
590.23
Peak demand (MW)
2025
931
2018
647
Electricity consumption by sector (MWh), 2017
Commercial & Public Services
0
Residential
0
Industrial
604.76
Per capita electricity consumption (kWh/person)
2016
1650.1
SSA average (2016)
365.6
Solar PV resource potential (output range, kWh/ kWp)
4.9 - 5.8
Wind resource potential (Wind speed range, metre per second)
2.5 - 9.5
Resource Potential (small hydro) MW
1685.1
Electricity mix by source (% of installed capacity), 2018
Solar (13.03 %)
Other (86.97 %)
Diesel price per litre (EUR)
T&D technical losses (% of generation)
2018
9.06%
Electricity and petroleum product subsidies (% of GDP)
Electricity subsidies, 2017
0.74%
€88,107,000.00
Petroleum product subsidies, 2017
1.03%
€123,349,800.00
Methodologies
Get to know how this Country Brief was developed
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Contact
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