THE National Planning Commission of Namibia (NPC), the Ministry of Mines & Energy, Northern Regional Electricity Distributor (NORED) and German Development Cooperation, through KfW Development Bank, have signed a grant agreement for 7.5 million Euro (about N$150 million) aimed at increasing access to electricity for households and small and medium enterprises in Namibia.
The funds complement MME’s own electrification budget and have been earmarked for peri-urban on-grid and rural remote off-grid electrification, mainly in the north-east and north-west locations of Namibia. As per latest statistics, the overall rural electrification rate stands at 20-30%while overall electrification stands at roughly 55% countrywide.
Namibia’s un-electrified areas are often far away from the grid and characterised by low population densities and / or highly dispersed settlements. In order to ensure long-term sustainability and economic viability of the new connections for the Regional Electricity Distributor (RED), the grant will cover the investment cost. At the same time, by agreeing on a mixture of peri-urban on-grid and remote off-grid electrification connections, the new lines will generate enough income to ensure regular maintenance by the RED for this operational area while maximising the developmental impact.
NPC Director General Obeth Kandjoze said that data from the recent census indicates that the Namibian population amounts to 3.01 million people and that the actual electrification rate might even be lower than 55% and in particular lower in the rural and remote areas.
“Hence, the access-to-energy project is a much-needed initiative with substantial impact and more projects of this kind will augment government´s efforts to increase access to energy,” he said.
Mines & Energy Executive Director Penda Ithindi said according to the Access-to-Energy Project plan, close to 4 000 connections will be installed which translates to provision of energy access for 18 000 to 20 000 people as well as productive users.
Project preparation included technical, environmental, economic and developmental assessments as well as extensive stakeholder engagement in order to identify the most eligible locations for this first of its kind approach.
NORED will be responsible for overall project implementation and will partly engage service providers for the roll-out. With regards to off-grid solutions, the funding proposal is intended to strengthen respective operating providers in their growth.
Germany Ambassador to Namibia, Thorsten Hutter, said his country’s government, through the Federal Ministry of Economic Cooperation and Development, supports Namibia in creating inclusive development opportunities for all while combating climate change.
“The Access-to-Energy Project will fight energy poverty by expanding and improving electrification in rural and peri-urban areas and thus initiate the productive use of electricity which will expand income opportunities and enhance economic development,” Ambassador Hutter said.
