Title of paper

3. Benefits and values from renewable energy technologies

Considerable economic, social and environmental benefits and value can be created by way of the large-scale introduction of renewable energy and energy efficient technologies in Namibia. Such benefits and value are particularly important for

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  creating local employment
  
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  reducing currency outflows
  
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  reducing Namibia’s dependence and vulnerability to foreign exchange fluctuations for energy-related expenditures
  

increasing private investment in the country’s energy sector, and

strengthening Namibia’s reputation as a country offering an intact environment, where smart policies ensure that environmental costs are minimised through the targeted roll-out and application of green technologies.
Social value is gained through local job creation, which in turn contributes to increase local income generation and local capacity development. Economic value is created by increasing our national energy supply and energy security, cost savings per kWh generated or saved, and foreign exchange savings. Environmental value is created by reducing carbon dioxide, particulate matter (PM), sulphur dioxide (SO₂) and nitrogen dioxide (NO₂) emissions, reducing water use, and minimising the total environmental footprint brought about by the use of energy technologies.
Social value can be created by energy systems – other than by providing access to energy – if they lead to long-term local job opportunities, result in investments in local capacity development, and contribute to build and strengthen local value chains.
Economic value in energy supply systems is created – amongst others – by increasing technology and human efficiencies, new investments, establishing new and permanent industries and jobs, and minimising non-productive cash outflows from Namibia.
Environmental value in energy supply systems is created if the use of limited local natural resources is optimised for their productive value, and by employing technologies having a minimal environmental footprint. If environmental processes can be enhanced by employing a particular energy technology, such as in the case of bush-to-electricity plants, where agricultural land can be reclaimed and underground water resources are enhanced through the select harvesting of invader bush, additional environmental value is created, while at the same time improving and strengthening environmental services from the land. Such value propositions yield benefits over and above the common environmental values (if any) created by other energy supply options. A national programme for the sustainable use of invader bush therefore holds massive value potentials, both for Namibia’s agricultural and labour sectors, as well as the environment. Here, forward-looking policy is required.
Bush-to-electricity power plants are likely to create the most local jobs, and lead to the development of a variety of new rural value adding services. Such service and support activities are expected to include contracting for bush harvesting, the transportation of harvested biomass, and the preparation of biomass before its use in power stations. The degree of mechanisation of harvesting, however, significantly determines the type and number of jobs actually created.

Considerable local value addition potentials are also locked in the more wide-spread application of solar water heaters. A national programme to successively replace electric water heaters with solar water heaters would create additional jobs in various service sectors as well as new manufacturing opportunities.

Similar to conventional coal-fired power plants, both concentrated solar power (CSP) plants and bush-to-electricity (BTE) plants offer dispatchable power. While coal remains an imported commodity with uncertain future cost increases which remain exposed to future foreign exchange fluctuations, both CSP and BTE use abundant local resources in the form of sunshine and invader bush and have no or very little future foreign exchange exposure. Value arising from investments in the use of local resources creates local value, jobs and expertise. Conventional power planning often ignores local value contributors and merely focuses on least-cost options. This is too narrow a view.
Policy drives investment. Namibian policy frequently deliberates on the need for local value addition. However, policy does not adequately recognise the value locked in Namibia’s renewable resources. The absence of policy-led initiatives incentivising the development of local sustainable value propositions built on Namibia’s abundant renewable resources is obvious. Policy must bring about a more balanced focus on local value creation. In this way, Namibia’s energy future could be placed on a secure footing. It is for policy to initiate the process to build Namibia’s sustainable and environmentally benign development on our solar, wind and biomass resources. There is no good reason why we should not start, immediately.

4. Conclusions

Namibia’s abundant solar, wind and biomass resources constitute a national comparative and sustainable advantage. We must more deliberately exploit our national renewable energy riches to create long-term socio-economic benefits. The productive use of Namibia’s renewable energy resources remains limited. There is no compelling reason why this must continue. Change is necessary.
Namibia’s energy policy must explicitly recognise the pivotal role that renewable energy and energy efficient technologies can play in powering the nation into the future. Policy has to clearly identify and pronounce the roles, responsibilities and mandates of the various participants in the country’s energy sector. Namibia’s current electricity sector challenges offer unique opportunities and must reorient national energy policy towards sustainability, by focusing the sector’s long-term development on the inclusion, targeted use and beneficiation of local renewable energy resources.
Namibia must create development-relevant value through the deliberate decentralisation of electricity generation capabilities, by incentivising the uptake and use of the country’s renewable energy resources. We urgently need to develop our abundant renewable energies if we are to sustainably power our development. A vision of a sustainable energy future that leverages Namibia’s renewable energy blessings can become reality. Not in a decade or two, but starting today. The time to act is now.

Renewable Energy Law – the Regulatory and Legal Framework

By Natalie A Renkhoff