Namibia's energy consumption

Official Name: Republic of Namibia.

Summary: Namibia imports about half of its electricity needs and all its liquid fuel, coal, and gas. The country has abundant yet undeveloped renewable energy resources and is the world’s fifth-largest producer of uranium.

In the two decades following Namibia’s independence in 1990, the country’s energy sector has undergone significant change. Today, the White Paper on Energy Policy, the Electricity Act, and various petroleum acts shape the energy sector’s policy and regulatory environment.

Namibia’s Ministry of Mines and Energy is the custodian of the country’s energy sector. The Electricity Control Board is the electricity sector’s regulator, managing the issuance of operating licenses. Other electricity sector participants include the state-owned utility NamPower, regional electricity distributors, local authorities, municipalities, large power users such as mines, and private consumers.

The National Petroleum Corporation of Namibia and several private-sector companies are responsible for the import and distribution of petroleum products; Namibia remains entirely dependent on these imports. Uranium is mined at several large mines, including Rio Tinto’s Rössing mine, one of the largest uranium mines in the world, and by Paladin Energy at Langer Heinrich mine, while the Chinese company Swakop Uranium is developing the Husab mine, which began production at the end of 2016 and is expected to contribute to a tripling of Namibia's uranium production.

Namibia’s long-term national vision statement, Vision 2030, foresees the country’s transformation into an industrialized nation with a natural resources-based export sector and skills-based industrial and service sectors using market-oriented production systems. Reliable, affordable, and accessible energy is a critical prerequisite to accomplish this vision.

Electricity Generation

In 2010, Namibia had three electricity-generating power stations: Ruacana is a 330-megawatt run-of-the-river hydroelectric power station on the Kunene River bordering Angola. The coal-fired Van Eck Power Station on the northern outskirts of Namibia’s capital, Windhoek, has a capacity of 120 megawatts. Commissioned in 1972, it is expensive to operate and used only to bridge short-term supply gaps, as is the diesel-fired Paratus Power Station at Walvis Bay, which has a capacity of 24 megawatts. The Anixas diesel-powered station at Walvis Bay added some 22 megawatts when it came online in 2011.

Namibia’s total installed electrical generation capacity (500 megawatts in 2014) is insufficient to meet the country’s demand for electrical energy. Imports, mainly from South Africa and Zimbabwe, make up the shortfall. Transmission networks link Namibia to suppliers across the border, adding a capacity of some 600 megawatts. In addition to the transmission line to South Africa, the Caprivi Link provides a northern alternative for electricity imports and exports and connects Namibia with Zambia, Zimbabwe, and the eastern parts of the Southern African Power Pool. Nonetheless, only about a third of the population of Namibia has access to electricity.

Electricity Sector

Namibia’s national electricity utility, NamPower, is responsible for generation, trading, and transmission. It also fulfills the role of system operator, balancing electricity supplies with the prevailing demand. All electricity imports and exports, as well as wheeling arrangements using Namibia’s extensive transmission grid, are managed by NamPower.

Regional electricity distributors (REDs), some municipalities, and local authorities are responsible for the supply and distribution of electricity to consumers. Three REDs are established and fully operational: Northern RED (NORED), which has operated since 2002, serves the country’s northern regions, while Central North RED (CENORED) and Erongo RED were established in 2005 and distribute electricity to consumers in north-central and western Namibia. Plans for a Southern RED (SORED) were announced in 2017.

There have been no new entrants into Namibia’s electricity sector. Reasons include low electricity tariffs, sectorwide structural impediments, the considerable leverage that the country’s monopoly generation and transmission provider has, an absence of national generation targets and incentives, and low electrical loads, with a widely dispersed population necessitating high infrastructure investments.

Since independence, Namibia has made progress in electrifying rural areas, yet less than one-fifth of the rural population has access to electricity. Economic considerations prohibit the country’s complete electrification by way of conventional grid electricity. Off-grid technologies powered by renewable energies could provide much-needed energy in areas far away from the national grid. Although sustainable rural energization models have yet to be found, the need for them may offer room for entrepreneurial action.

Namibia’s electricity sector faces several challenges, which include safeguarding the security of supplies, expanding the national generation portfolio, introducing cost-reflective tariffs, attracting new sector participants, sustaining the operations of the REDs, electrifying rural areas, and developing Namibia’s rich renewable energy resources. Rapid development, particularly in the country’s mining sector, and ongoing southern African capacity constraints necessitate urgent investments in local electricity generation capacity.

Renewables and Uranium

In 2014, Namibia consumed some 3.7 terawatt-hours of electrical energy. The country has been meeting more than half of its electrical energy requirements through imports. In 2013, almost a third of the electricity in the country was generated from fossil fuels, while two-thirds came from hydroelectric power, with none from any other renewable source. However, Namibia has an abundance of renewable energy resources, including solar, biomass, and wind. In addition, there are seemingly plentiful potential indigenous energy resources, including geothermal, wave, and tidal energy. This rich natural endowment constitutes a national comparative advantage that awaits decisive development. Policy has not provided the desired impetus to stimulate much-needed advances, but fresh mindsets and focused incentives could unlock the country’s sustainable riches.

In 2013, Namibia produced some 4,100 tons of uranium, but with the advent of the Husab mine, this number was predicted to reach as high as 12,000 tons by the end of 2017, which could make it the second-largest producer of uranium in the world. Namibia's uranium is exported for further processing and use in nuclear power stations abroad. Because of its uranium production, the country exports almost ten times as much energy as it consumes.

Bibliography

“Namibia.” In Encyclopedia of Global Warming and Climate Change, edited by S. George Philander. Thousand Oaks, CA: Sage, 2008.

“Namibia.” The World Factbook, Central Intelligence Agency, 27 Sept. 2017, https://www.cia.gov/library/publications/the-world-factbook/geos/wa.html. Accessed 2 Oct. 2017.

Namibia Energy Policy, Laws and Regulation Handbook. Washington, DC: International Business Publications, 2008.

U.S. Energy Information Administration. “Country Analysis Brief: Namibia.” http://205.254.135.7/countries/country-data.cfm?fips=WA.