Title of paper

3. Energy efficiency potentials in Namibia’s electricity sector

Considerable energy efficiency opportunities exist in the domestic sector. These can cost-effectively reduce the consumption of electrical energy on a household level, thereby contributing to mitigate the increases in domestic energy expenditure and use. Here, the use of energy efficient appliances and greener technologies are of particular importance and hold considerable domestic electricity savings potentials, while cost-effectively enhancing the services from energy efficient appliances.
Informed by international and local experience with the introduction of energy efficient technologies, potential domestic electricity savings often lie between 20% and 60% of the total consumption, without the loss of amenities or comfort. The introduction and use of such technologies however depends critically on the awareness and willingness of domestic users to systematically identify and embrace technologies and activities that have energy savings potentials.
It is recognised that Namibia has a substantial stock of existing residential properties, as well as consistent housing backlog in both urban and peri-urban areas. These create a demand for housing which in turn necessitate that new domestic construction adds thermally and light-efficient buildings to reduce costs arising from unnecessary or easily avoidable expenditures on energy.
Experience shows that effective approaches to energy efficiency in the domestic sector include:

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  energy efficiency awareness programmes, including ready access to information,
  
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  housing design, and specifically the thermal efficiency of houses,
  
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  regulatory requirements for energy efficiency planning approvals for new/refurbished housing,
  
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  energy labelling of appliances,
  
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  energy efficiency and demand side management programmes, and
  
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  a supportive regulatory environment to set electricity tariffs based on energy efficiency performance rather than traditional consumption-based revenues only.
  

While energy efficient technologies are important in the domestic sector, the uptake and productive use of energy efficient technologies in the commercial and industrial sector is often more readily achieved, and holds greater savings opportunities than those in the domestic sector. This is because commercial/industrial facilities often have larger and better defined electrical energy consumption patterns, more pronounced financial and economic benefits when employing energy efficient technologies, and better access to finance to allow for technology upgrades yielding energy savings.

The use of energy efficient technologies and the application of energy efficiency measures can reduce Namibia’s dependence on electricity imports and our reliance on fossil fuels. Additional value can be created through the large-scale introduction of energy efficient technologies in Namibia, most notably by way of economic value added by reducing the demand for costly and/or inefficiently used electricity, and environmental value added by reducing greenhouse gas and other emissions which arise due to the generation of electricity using fossil fuels.

4. Conclusions

Namibia’s energy sector is significantly import-dependent. We face a very considerable electricity supply gap. Electricity prices have increased steadily in the past years. Affordability of electricity is under threat, while access to electricity is still limited. Our national development depends on a reliable electricity sector. The wasteful use of electricity hurts consumers and the economy.
Energy efficiency technologies and measures can contribute to transform the Namibian energy sector. Incentivising the productive and efficient use of our energy resources is important. Using energy efficient technologies and energy efficiency measures is often cost-effective and creates immediate benefits and values. Everyone can use energy more productively and efficiently – to the benefit of all. In this way, we can all contribute to more sustainably powering the nation into the future.

The Sun does not send you a Bill - Who can afford Power?

By Harald Schütt

1. Introduction

At the end of the day it depends on the vision, which concept is implemented to combat Namibia’s energy shortage; and the basic question we are discussing here is whether we want to try and keep the expensive and inefficient centralised system going, or whether we want to shift to a modern, decentralised system of power generation, which is based on renewable sources. Since this will have considerable impact on the value streams, it is a ‘hot potato’ for many people.

2. History of Namibia’s energy sector

The infrastructure for electricity generation and distribution in Namibia was planned in the 1950s and 60s. The predecessor of NamPower, SWAWEK, was established in 1964 as a full subsidiary of the Development Corporation of South Africa. It became operational on 1 July 1974 (The Namibian, 11 May 2007). At that time the planning horizon was limited to less than 5% of the population of the then South-West Africa. There was a direct grid connection to the ESKOM system, which supplied power to the (white) minority in SWA, who could afford it. Those, who were not connected, set up small generators, or lived without electricity, like the vast majority of the rural population is still doing today. When the idea to build Ruacana with its 242 MW capacity came up, the initiators were told that they were exaggerating by far. Besides the alleged overcapacity at that time, the transmission and distribution of electrical power was also considered as a major cost factor. What advantage could at that time a (white) household in Keetmanshoop or elsewhere in this huge territory expect from an off-the-river hydro power station 1,500 km north? The cost of generation and grid connection was exorbitant and no one could realistically expect that the users would be able to refinance the cost within a foreseeable timeframe. However, the power station was built and the grid was gradually extended to supply those, who were in the privileged position those days to be considered relevant enough to be connected to the national power distribution system.
The cost was largely financed through the South African regime and later on through a commercial credit. Since it was by no means sure at that point in time, that such credit would ever be repaid within a foreseeable period of time, the decision must have been made on basis of a vision; whatever this vision entailed in detail, the fact that these structures are there and operational until now shows that this type of decisions can not be based on immediate business calculations, but need to take long-term perspectives as a guideline. The longer such perspective, the less predictable are the factors that make such investment a success or failure. In essence, we are therefore discussing a vision of how Namibia should be electrified: centrally and fossil based or decentralised on basis of renewable generation.
Wikipedia says about this investment:

“For many years, the further investment of capital on a generating plant would no longer be necessary, because with the completion of this transmission line the total peak capacity available to SWAWEK was about four times higher than the system peak demand at that time [1980].”²⁴

In the meantime, however, the growing demand has exceeded the generation capacity significantly, so that nowadays NamPower, the legal successor of SWAWEK, has to import an average 60% and at times of draught 80% of the electricity from other generating powers in the region and pay in excess of one billion per annum to these suppliers.