Namibia

Namibia, with its exceptional solar resource and large and sparsely populated countryside is well suited to solar mini-grids. Despite this, there have not been many built to date. The government is however starting to recognise the role that mini-grids can play in rural electrification and has developed the Pathway to Renewable Off-Grid Community Energy for Development (PROCEED) project. The purpose of this initiative is to estimate potential energy demand in rural areas and explore the advantages of various electricity supply options. Key to this will be an analysis of three existing mini-grids. This work is being supported by the German government. A number of organisations are active in the mini-grid electrification space in Namibia. These include the Desert Research Foundation, Emcon and Hopsol.

The Electricity Act of 2007 provides for licencing requirements and conditions and quality standards. Companies in all electricity sub sectors must be licenced. Licence exemptions apply to generation systems smaller than 500 kVA (grid connected or off-grid) for the sole purpose of self-consumption on a single property and distribution systems with the demand less than 500 kVA for self consumption on a single property. Distribution systems with demand of more than 500 kVA on a single property, serving the owner of the property or other persons can apply for an exemption. Embedded networks such as shopping malls and housing developments are exempted. Exempted systems must still comply with relevant rules and codes and applicable laws (health & safety, environment). The Electricity Regulations: Administrative Rules (2007), in the framework of the 2007 Electricity Act, specifies the fees applicable to applying for licence and the information to be submitted in licence application. It also specifies the fees applicable to applying for licence exemption and information that must be submitted. The Electricity Regulations: Technical Rules (2007), in the framework of the 2007 Electricity Act, comprise, among others, rules pertaining to decommissioning, reporting of incidents and accidents, compliance with the Namibia Electricity Safety Code, works on immovable property, electricity installations, metering and protection for licencees. While the Electricity Act of 2007 specifies a 500 kVA threshold for licence exemption, the Technical Rules (2007) states that generators used for self-consumption irrespective of size are exempt. The rules also elaborate on the technical requirements for licenced and unlicenced off-grid and grid connected generators. The Electricity Regulations: Economic Rules (2007), in the framework of the 2007 Electricity Act, comprise, among others, rules pertaining to supply contracts, costs to be reflected in tariffs, tariff approval, determination of electricity supplied and consumed, costs related to prepaid meters and conditions for suspension, disconnection and reconnection of customers. The Distribution Grid Code (2007), in the framework of the 2007 Electricity Act, specifies distribution grid connection procedures, technical requirements, system planning and development, small renewable energy feed-in conditions and quality of supply requirements. The code only applies to licencees in the electricity sector. The Namibia Electricity Safety Code (2009), in the framework of the 2007 Electricity Act, governs the minimum safety standards for the operation, maintenance, construction and installation of power systems. The code only applies to licencees in the electricity sector.

Namibia has a successful track record of enabling and implementing standalone solar systems in the country. In 2015, nearly a third of the 47 registered renewable energy suppliers were registered to supply solar home systems, indicating a strong local market for solar home systems and pico-solar products. While no sales were recorded in 2019 from GOGLA and Lighting Global affiliate companies, 2018 saw 6,785 sales. Companies offering solar home or pico-solar solutions include Dezman Investments, Taati Solar (distributing SunKing lights) and Waka Waka Solar.

The government’s 2017 Renewable Energy Policy strongly supports building on work done to date to further develop local expertise for technicians working on solar home systems, solar water heaters and PV pumps. Proactive support is offered to these industries, including for project preparation, due diligence and lending support through preferential lending rates. To this end, the Government of Namibia continues to support the industry via the Solar Revolving Fund (SRF), a dedicated credit facility established to stimulate the demand and use of renewable energy technologies, with a focus on off-grid areas. In the period between 2011 and 2017, the SRF financed more than 3,000 SHSs.

The Electricity Act of 2007 provides for licencing requirements and conditions and quality standards. Companies in all electricity sub sectors must be licenced. However, licence exemptions apply to generation systems smaller than 500 kVA (grid connected or off-grid) for the sole purpose of self consumption on a single property. Exempted systems must still comply with relevant rules and codes and applicable laws (health & safety, environment).

Namibia has a thriving captive power market, driven largely by the need for reliable supply and the country’s abundant solar resources. Namibia’s grid is powered primarily from South Africa’s Eskom, which has been experiencing outages in recent years, and the country’s own hydropower plant, which was hit by severe drought at the end of 2019.

Captive energy solutions are largely serving customers across commercial, tourism, manufacturing and extractive industry sectors. Example projects below 1 MW include 150 kW solar and storage at Chobe Water Villages, 470 kW solar at Mokuti Etosha Lodge, 189 kW solar at The Salt Company, 200 kW at Caterserve and 128 kW solar at Midgard Country Estate.

Namibia Dairies and Namibia Breweries respectively have 800 kW and 1.1 MW rooftop solar facilities to power their operations, while Coca Cola Windhoek has a similar system of 534 kW installed. Notable industrial installations include a 7 MW solar plant at B2Gold Mine and a 5 MW solar plant at Ohorongo Cement Factory. Shopping centres have also become popular sites for captive power facilities using solar. These include the Grove Mall (2.8 MW), Gwashamba Mall (430 kW), Maerua Mall (2.6 MW), Ongwediva Shoprite (224 kW) and Wernhil Park (1.1 MW).

Alensy, CAT Microgrid Solutions, Cronimet, Hopsol, Mulilo Group, O&L Energy, Romano Solar, SolarSaver and Sustainable Power Solutions (SPS) are responsible for many of the projects outlined above. Other companies operating in the sector include Distributed Power Africa, Energy Partners, Light Systems Namibia, Namibian Engineering Corporation, New Southern Energy, Sedgely Energy, Soitec, Solar Age, Solsquare and Solar Water Solutions, among others. Companies often form consortia when developing captive power projects, which may indicate a relatively consolidated developer market.

By August 2019, Namibia was finalising a new energy policy that would allow the trading of electricity between generators and customers.

The Electricity Act of 2007 provides for licencing requirements and conditions and quality standards. Companies in all electricity sub sectors must be licenced. Licence exemptions apply to generation systems smaller than 500 kVA (grid connected or off-grid) for the sole purpose of self consumption on a single property and distribution systems with demand less than 500 kVA for self consumption on a single property. Exempted systems must still comply with relevant rules and codes and applicable laws (health & safety, environment). The Electricity Regulations: Administrative Rules (2007), in the framework of the 2007 Electricity Act, specifies the fees applicable to applying for a licence and the information to be submitted in a licence application. It also specifies the fees applicable to applying for a licence exemption and information that must be submitted.
The Electricity Regulations: Technical Rules (2007), in the framework of the 2007 Electricity Act, comprise, among others, rules pertaining to decommissioning, reporting of incidents and accidents, compliance with the Namibia Electricity Safety Codes, works on immovable property, electricity installations, metering and protection for licencees. While the Electricity Act of 2007 specifies a 500 kVA threshold for licence exemption, the Technical Rules (2007) states that generators used for self-consumption irrespective of size are exempt. The rules also elaborate on the technical requirements for licenced and unlicenced off-grid and grid connected generators. The Electricity Regulations: Economic Rules (2007), in the framework of the 2007 Electricity Act, comprise, among others, rules pertaining to supply contracts, costs to be reflected in tariffs, tariff approval, determination of electricity supplied and consumed, costs related to prepaid meters and conditions for suspension, disconnection and reconnection of customers.
The Net Metering Rules: Electricity Act, 2007 states that all renewable energy technologies are eligible for net metering and the on-site generation capacity will not exceed the lower of the main electricity supply circuit breaker current rating. Regional distributors are required to state the aggregate distribution capacity limits. All net metering consumers are exempted from having to apply for a generation licence. Interconnection will be done in accordance with the Distribution Grid Code. The requirement for a manual disconnect switch can be waived under certain conditions. The rules further elaborate on requirements for meters, billing and guidelines for tariff setting and provide standard application forms and contracts. The Distribution Grid Code (2007), in the framework of the 2007 Electricity Act, specifies distribution grid connection procedures, technical requirements, system planning and development, small renewable energy feed-in conditions and quality of supply requirements. The code only applies to licencees in the electricity sector.
The Namibia Electricity Safety Code (2009), in the framework of the 2007 Electricity Act, governs the minimum safety standards for the operation, maintenance, construction and installation of power systems. The code only applies to licencees in the electricity sector.

By 2018, 43% of Namibia’s population had access to clean cooking solutions. 62% of the population rely on wood for cooking, making it the main cooking fuel in the country. The use of dung, charcoal and kerosene is less common in Namibia, while 6% and 29% of the population rely on liquid petroleum gas (LPG) and electricity respectively. The national government has set a target of decreasing non-sustainable biomass use for cooking and space heating by at least 30% by 2020 and 60% by 2030. This is described in the country’s SEforAll 5 year Energy Strategic Plan. Relatively few organisations are involved in the clean cookstove market. Examples include Osepo Investments and Taati Solar, a distributor of BioLite cookstoves.