by PHASE 1: Sustainable Development Through Renewable Energy Investments in Namibia
Endowed with abundant natural resources, Namibia stands at a crossroads in pursuing sustainable development. Despite boasting some of Africa’s best solar and wind resources, a staggering two-thirds of the population needs access to electricity. This stark reality hinders economic growth and perpetuates social inequalities, slowing progress towards the United Nations’ Sustainable Development Goals (SDGs). However, by harnessing its renewable energy potential, Namibia has the opportunity to address these challenges, driving sustainable economic growth while promoting social development and environmental stewardship.
Namibia’s renewable energy endowment is genuinely remarkable. The country receives an average of over 3,500 hours of sunshine annually, making it an ideal location for large-scale solar power projects. Additionally, Namibia’s coastal regions boast exceptional wind resources, with average wind speeds ranging from 6 to 8 meters per second, presenting a significant opportunity for wind energy development.
Despite this abundant potential, Namibia’s energy sector relies heavily on imported electricity and fossil fuels, with renewable energy accounting for only a tiny fraction of the country’s energy mix. This dependence not only exacerbates Namibia’s vulnerability to fluctuating global energy prices but also contributes to greenhouse gas emissions, further exacerbating the impacts of climate change. Moreover, Namibia is exploring the potential of green hydrogen production, which has emerged as a promising opportunity for the country’s sustainable energy transition. Green hydrogen is produced through water electrolysis using renewable energy sources and can be used as a clean energy carrier in various industries. Scaling up investments in renewable energy sources presents a viable solution to addressing these challenges. By harnessing its solar and wind resources, Namibia can reduce its reliance on imported energy, promote energy security, and mitigate the environmental impact of fossil fuels. Moreover, increased access to reliable and affordable energy can catalyze economic growth, create employment opportunities, and improve social development indicators such as education, healthcare, and gender equality.
Image source: Research gate
Phase 2: Namibia’s Renewable Energy Roadmap: Policies, Partnerships, and Achieving the 70% Target
Namibia has set an ambitious goal of generating 70% of its renewable energy by 2030. This bold commitment positions the country as a leader in the fight against climate change and aligns with the United Nations’ Sustainable Development Goals, particularly SDG 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all.
To achieve this target, the Namibian government has implemented a comprehensive policy framework and established robust institutional mechanisms to facilitate the development of renewable energy projects. The Renewable Energy Feed-in Tariff (REFIT) program, introduced in 2015, offers attractive tariffs to independent power producers generating electricity from renewable sources like solar, wind, and biomass. This initiative has been crucial in attracting private sector investments in large-scale renewable energy projects.
The Namibia Energy Regulatory Authority (NERA), established in 2020, is an independent regulatory body overseeing the energy sector. Its mandate includes setting tariffs, issuing licenses, and enforcing regulations, creating a transparent and conducive investment environment for renewable energy development. The National Integrated Resource Plan (NIRP) provides a comprehensive roadmap for integrating renewable energy sources into the national grid, ensuring a reliable and secure energy supply while minimizing environmental impacts.
Recognizing the importance of leveraging private sector expertise and resources, the Namibian government has actively promoted public-private partnerships (PPPs) in the renewable energy sector. These partnerships have played a pivotal role in attracting investments, facilitating knowledge transfer, and accelerating the deployment of renewable energy technologies. A notable example is the 37 MW Hardap Solar Power Plant, a joint venture between the Namibian government and private sector partners like Intrathen (Pty) Ltd and Gronergy (Pty) Ltd. This project contributes to Namibia’s renewable energy goals, creates employment opportunities, and stimulates economic growth in local communities. By leveraging its abundant renewable energy resources and strategic location, Namibia aims to position itself as a hub for green hydrogen production and export, creating new economic opportunities while contributing to the global transition towards a more sustainable energy future.The Namibian government has identified green hydrogen as a key component of its sustainable development strategy and is actively seeking international partnerships and collaborations to unlock this potential. One such initiative is the Namibia Integrated Hydrogen Partnership, a collaboration between Namibia, Germany, and various stakeholders to explore the production and export of green hydrogen.
Image source: Namibia’s renewable
Phase 3: Namibia’s Renewable Energy Landscape: Progress, Investments, and Challenges
Namibia has made significant strides in harnessing its abundant solar and wind resources, attracting substantial investments in large-scale renewable energy projects. The country’s vast solar potential has been tapped through initiatives like the 37 MW Hardap Solar Power Plant, a joint venture between the government and private partners, with an investment of over N$700 million (approximately USD 45 million). The 45 MW Osona Solar Power Plant, developed by French company HDF Energy, represents another significant private sector investment of N$1.2 billion (USD 77 million). Additionally, the planned Omburu Sun Energy Solar Park, an investment of N$6.7 billion (USD 430 million) by the UAE-based SARU Group, aims to be one of Namibia’s largest solar projects with a 500 MW capacity.
Namibia’s exceptional wind resources, particularly along its coastal regions, have attracted investments in wind energy projects. The Lüderitz Wind Farm, Namibia’s first large-scale wind farm, commenced operations in 2020 with a N$1.1 billion (USD 70 million) investment by Diaz Wind Power and Rössing Uranium. The Tsau //Khaeb Wind Power Project, scheduled for completion in 2025, is an N$8 billion (USD 514 million) investment by Swiss company Hexagon Renewable Energy, with a planned capacity of 450 MW.
Moreover, Namibia’s abundant renewable energy resources and strategic location have positioned the country as an attractive destination for investments in green hydrogen production. The Namibia Integrated Hydrogen Partnership, a collaboration between Namibia, Germany, and various stakeholders, aims to explore this potential. Companies like HYPHEN Hydrogen Energy plan to develop a N$9.4 billion (USD 604 million) green hydrogen project in Namibia. The Southern Corridor Development Initiative, led by the Namibian government, seeks to establish a green hydrogen corridor along the country’s southern regions, with an estimated investment of N$156 billion ($10 billion USD).
While Namibia has made significant progress, several challenges remain. Infrastructure constraints, such as the need for transmission lines and substations to integrate renewable energy projects into the national grid, pose logistical hurdles. Securing financing for large-scale initiatives can also be a significant challenge, requiring innovative financing mechanisms like green bonds and public-private partnerships. Additionally, addressing skills gaps through technical training programs and capacity building is essential to ensure the availability of a qualified workforce to support the growing renewable energy sector.
Namibia’s commitment to sustainable development through renewable energy investments is commendable. However, overcoming challenges related to infrastructure, financing, and skills development will be crucial to ensuring the long-term success of the country’s renewable energy transition and achieving its ambitious goal of generating 70% of its electricity from renewable sources by 2030.
PHASE 4: The Path Forward: A Cost-Benefit Analysis of Renewable Energy in Namibia
As Namibia pursues a transition to renewable energy sources, conducting a thorough cost-benefit analysis is crucial for informing policy decisions and sustainable development goals. Evaluating the economic, social, and environmental impacts reveals significant potential benefits of investing in renewables compared to conventional fossil fuels.
Socially, increasing renewable energy deployment improves energy access in remote areas, a key enabler of development through better healthcare, education, and quality of life.. Environmentally, renewable sources drastically reduce greenhouse gas emissions that contribute to climate change compared to fossil fuels. They are inexhaustible, conserving finite natural resources for future generations. Technologies like solar and wind have far lower impacts on air, water, land degradation, and ecosystems.
Economic Benefits: Unlocking Sustainable Growth
Investments in renewable energy projects in Namibia have the potential to yield significant economic benefits, both in the short and long term. The development, construction, and operation of renewable energy projects create employment opportunities across various sectors, from manufacturing and installation to maintenance and technical services (Schwab). For instance, the Omburu Sun Energy Solar Park is expected to generate over 5,000 jobs during its construction phase and approximately 200 permanent jobs once operational (renewables in Africa). The renewable sector also holds promise for promoting gender equality and women’s economic empowerment. By harnessing its abundant renewable resources, Namibia can decrease its reliance on imported energy sources, mitigating the financial risks associated with fluctuating global energy prices and supply disruptions. Namibia’s favorable renewable energy policies and incentives have attracted significant foreign direct investment (FDI) from international companies and investors (Rauneker and Pradhan). Continued investments in this sector can further stimulate economic growth and diversify Namibia’s economy.
To accelerate renewable adoption, Namibia should strengthen policies with incentives for private investment, streamline permitting, and enhance infrastructure for grid integration. Promoting research, innovation, workforce training, and international cooperation through knowledge-sharing is also recommended. Ensuring community engagement throughout project planning and implementation is vital for equitable benefit-sharing.
Namibia can reap substantial economic, social, and environmental rewards by capitalizing on its abundant renewable potential through a strategic policy framework. This supports sustainable development while contributing to global climate efforts. A successful transition can inspire replication by other nations across Africa.
Image source: Research gate
References
Phase 1:
https://www.youtube.com/watch?v=XRmWDYdhuUA
The Lüderitz Wind Farm: “The Lüderitz Wind Farm, Namibia’s first large-scale wind energy project, commenced operations in 2020.
Gosai, Anit. “Namibia, Germany Sign Agreement to Explore Green Hydrogen.” ESI Africa, 27 Feb. 2023, www.esi-africa.com/renewable-energy/namibia-germany-sign-agreement-to-explore-green-hydrogen/. Accessed 19 Mar. 2024.
Kisting, Denver. “Energy Access in Namibia: Challenges and Opportunities.” Renewable Energy World, 25 Jan. 2023, www.renewableenergyworld.com/baseload/energy-access-in-namibia-challenges-and-opportunities/. Accessed March 19 Mar. 2024.
Rauneker, Paulina, and Anjali Pradhan. “Renewable Energy in Namibia: A Case Study.” Renewable Energy World, 11 Jan. 2023, www.renewableenergyworld.com/storage/renewable-energy-in-namibia-a-case-study/. Accessed March 19 Mar. 2024. Remove Energy. “Solar Energy in Namibia.” Remove Energy, www.remov.energy/solar-energy-namibia/. Accessed 19 Mar. 2024.
Phase:2
Gosai, A. (2023, February 27). Namibia, Germany Sign Agreement to Explore Green Hydrogen. ESI Africa. https://www.esi-africa.com/renewable-energy/namibia-germany-sign-agreement-to-explore-green-hydrogen/
Namibia Energy Regulatory Authority. (n.d.). About Us. https://www.nera.org.na/about-us
Rauneker, P., & Pradhan, A. (2023, January 11). Renewable Energy in Namibia: A Case Study. Renewable Energy World. https://www.renewableenergyworld.com/storage/renewable-energy-in-namibia-a-case-study/
Phase:3
ESI Africa. “HYPHEN to Develop $604m Green Hydrogen Project in Namibia.” ESI Africa, 27 Jan. 2023, www.esi-africa.com/industry-sectors/future-energy/hyphen-to-develop-604m-green-hydrogen-project-in-namibia/. Accessed 19 Mar. 2024.
—. “Namibia Establishes Green Hydrogen Corridor.” ESI Africa, 10 Feb. 2023, www.esi-africa.com/renewable-energy/namibia-establishes-green-hydrogen-corridor/. Accessed 19 Mar. 2024.
Gosai, Anit. “Namibia, Germany Sign Agreement to Explore Green Hydrogen.” ESI Africa, 27 Feb. 2023, www.esi-africa.com/renewable-energy/namibia-germany-sign-agreement-to-explore-green-hydrogen/. Accessed 19 Mar. 2024.
Phase:4
IRENA. “Renewable Energy: A Gender Perspective.” International Renewable Energy Agency, 2019, www.irena.org/-/media/Files/IRENA/Agency/Publication/2019/Jan/IRENA_Gender_perspective_2019.pdf. Accessed 19 Mar. 2024.
Rauneker, Paulina, and Anjali Pradhan. “Renewable Energy in Namibia: A Case Study.” Renewable Energy World, 11 Jan. 2023, www.renewableenergyworld.com/storage/renewable-energy-in-namibia-a-case-study/. Accessed 19 Mar. 2024.
Renewables in Africa. “Namibia’s Omburu Sun Energy Solar Park to Start Construction Soon.” Renewables in Africa, 6 Mar. 2023, www.renewablesinafrica.com/namibias-omburu-sun-energy-solar-park-to-start-construction-soon/. Accessed 19 Mar. 2024.
