Country Window Namibia
Improving conditions for investment in Namibia’s energy transformation
The energy sector in Namibia is characterised by a diverse mix of resources and a growing focus on renewable energy. At present, the country primarily relies on imported electricity from neighbouring countries, with Zambia being a major supplier. According to the National Integrated Resource Plan (NIRP) 2022, Namibia is set on bringing energy imports down from 80% to 29% by 2028 by increasing domestic generation capacity. The country is also aiming for universal energy access by 2040 as per the draft Electrification Policy. Namibia has bountiful renewable energy resources known to be the amongst the best in the world, creating an opportunity for a 100% green power sector, which not only caters to Namibia’s domestic energy requirements but also enables universal access to electricity and facilitates energy trade within the Southern African Power Pool (SAPP) region. This renewable energy potential positions Namibia to become a key player in the export of clean energy to neighbouring nations and paves the way to produce green hydrogen and its derivatives, presenting multifaceted opportunities for sustainable energy development as well as economic development.
It is Namibia’s declared vision “ to become a regional leader in the development and deployment of Renewable Energy within the Southern African Development Community (SADC)” as stated in the Renewable Energy Policy of 2017. To this end, the government has initiated policies that encourage private sector investment in renewable energy projects and liberalise the Namibian power market such as the Independent Power Producer (IPP) policy as well as the Modified Single buyer framework. In partnership with the Ministry of Mines and Energy and Namibia’s regulatory authority, the Electricity Control Board, as well as Namibia’s utility, NAMPOWER, GET.transform is able to further support unlocking these new opportunities through regulatory support. A first collaboration has led to the development and launch of a SAPP and MSB Market Access Guide that gives an overview of the market rules and roles in Namibia’s Modified Single Buyer (MSB) and SAPP’s regional market, providing answers to the urgent need of consolidated information on how IPPs can become active participants in both markets.
As Namibia is driving the transformation of its power sector, further opportunities for cooperation look to include long-term energy planning, renewable energy grid integration as well as on-grid and off-grid regulation and market development.
The PRLN is a dynamic three-year capacity-building programme, masterminded by the esteemed Power Futures Lab (PFL) at the University of Cape Town’s Graduate School of Business and delivered in partnership with GET.transform.