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A quiet transition: The role of Namibia's state-owned power utility in the renewable energy auction program

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  • Kruger, Wikus

Abstract

Namibia has quickly become a leading African destination for renewable energy investments due to the country's considerable renewable energy and land resources and competitive prices for utility-scale solar PV independent power projects (IPPs) procured through auction programs. These project prices are all the more remarkable considering that contracts are in local currency, provided without government support, a rarity in sub-Saharan Africa. Key to this outcome is NamPower, Namibia's state-owned power utility. NamPower is both procurer and off-taker for these projects and is one of only three utilities in sub-Saharan Africa that can charge cost-reflective tariffs. The utility is generally regarded as well run and is supported by a regulatory agency positioning the country to embrace the energy transition rapidly. This paper analyses the evolution of Namibia's renewable energy procurement programs, illustrating how a combination of factors at the country, program and project levels led to competitive prices and high project-realisation rates.

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  • Kruger, Wikus, 2022. "A quiet transition: The role of Namibia's state-owned power utility in the renewable energy auction program," Utilities Policy, Elsevier, vol. 78(C).
    • Handle: RePEc:eee:juipol:v:78:y:2022:i:c:s0957178722000571
    DOI: 10.1016/j.jup.2022.101392
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    References listed on IDEAS

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    1. Favour C. Onuoha & Stephen K. Dimnwobi & Kingsley I. Okere & Chukwunonso Ekesiobi, 2023. "Sustainability Burden or Boost? Examining the Effect of Public Debt on Renewable Energy Consumption in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 23/031, African Governance and Development Institute..
    2. Favour C. Onuoha & Stephen K. Dimnwobi & Kingsley I. Okere & Chukwunonso Ekesiobi, 2023. "Sustainability Burden or Boost? Examining the Effect of Public Debt on Renewable Energy Consumption in Sub-Saharan Africa," Working Papers 23/031, European Xtramile Centre of African Studies (EXCAS).

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