Rural development in Namibia through electrification with Renewable energies

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1 Rural development in Namibia through electrification with Renewable energies June 2016 African Carbon Forum Kigali Rwanda Namibia By Paulus Ashili Ministry of Environment & Tourism, Namibia

2 Facts about Namibia The Republic of Namibia is situated in South-West Africa. It is a vast, sparsely populated country with 2.3 million people. With a surface area of 824,292 km 2. It has a 1,500 km long coastline on the South Atlantic Ocean.

3 National context The electricity demand through the national grid is supplied by domestic electric power plants (thermal and large- scale hydro). 41 % of Namibia s electricity demand is supplied by domestic power plants; 59 % of electricity imported from the Southern African Power Pool (SAPP) member countries. -About 16 per cent of rural households -54 per cent of rural schools -59 per cent government buildings

4 Solar energy potential in Namibia Solar energy potential is the most abundant renewable energy source in Namibia. The country has an excellent sunshine regime, which can produce annual energy yields of between 1,600 kwh/kwp in coastal areas and up to 2,100 KWh/kWp in the southern part of the country.

5 Objectives of our NAMA Improve electricity access Improve the share of renewable energies Reduce GHG emissions Provide conditions for income generation and new business opportunities Increase private sector involvement Achieve additional SD benefits

6 Intervention areas Intervention A : Establishment of renewable energy based (solar, wind, hydro) mini grids in rural communities to provide services to Households Rural Productivity Zones (RPZ) Public buildings Intervention B: To support the installation of Energy Zones. The intervention B will promote new entrepreneurial activitieselectricity for Internet cafes, sewing workshops, ice-making, agroprocessing, etc.

7 Target of interventions NAMA aims to establish 10 mini grids and 13 Energy Zones, under first phase of implementation. This will provide electricity to around 1,400 households. Estimated annual electricity generation under Intervention A is 110,000 kwh, while under intervention B it is18,000 kwh Over the 15-year lifetime of the NAMA, around 80 new enterprises will be established through these two interventions. Emission reductions will reach around 20,000 tco2e over the 15-year lifetime of the NAMA.

8 Sustainable Development Benefits Intervention A Parameter Baseline value Project value (assumed for 1 MG) Number of health clinics electrified 0 1 Number of households electrified People with access to RE electricity Number of schools electrified 0 1 New income-generating activity (businesses) 0 5 Number of new jobs (total) Number of new jobs for women Intervention B Parameter Baseline value Project value (assumed for 1 MG) Households having access to electricity services 0 30 People with access to RE electricity services Number of new women enterprises in the EZ 0 1 New sales point for RE&EE technologies 0 1 New income-generating activity (business)

9 National development strategies & Policies Vision 2030 The Fourth National Development Plan 2012/ /2017 Off-Grid Energisation Master Plan (OGEMP) The White Paper on Energy Policy 1998 Rural electricity Distribution Master plan for Namibia 2010 National Integrated Resources Plan (NIRP) 2013

10 Institutional arrangement Implementation will be led by the Ministry of Environment as the NAMA Coordinating Authority. The Environmental Investment Fund (EIF) will be the implementing entity supported by the Namibia Energy Institute (NEI). The Namibia Climate Change Committee (NCCC) will act as the supervisory board for the NAMA. NAMA Executing Entities (NEEs) are the companies and/or institutions which will implement projects under the two interventions. Each NEE will implement projects in compliance with the rules

11 NAMA Cost and Finance The NAMA will be co-financed by the Government of Namibia and international support partners. National Finance: it is proposed that national finance will include financial flows related to capacity building, grant contributions and payments by customers. International Finance: will be used for direct investment grants in Interventions A and B. The contributions will be channelled directly from the partners to the NIE, to Executing Entities (EE) in both Intervention A and Intervention B. Total costs of the NAMA are estimated at around US$14 million. Namibian Government will contribute around 30%, 15% from private sector & 55% from donors.

12 Implementation steps and timeframe Target Timeline Establishment of Institutional Structure December 2015 National and International Financing June 2016 Intervention A Elaboration and promotion of tender March 2016 Registration of potential NEEs September 2016 Publication of tender December 2016 Information activities and support June 2017 Submission of proposals September 2017 Evaluation of proposals December 2017 Approval of proposals March 2018 Disbursement of funds Onward June 2018 Intervention B Creation of long-list March 2016 Information for potential Energy Zone partners March 2017 Expression of Interest June 2017 Evaluation of long-list September 2017 Selection of Energy Zones December 2017 Approval of proposals March 2018 Disbursement of funds Onward June 2018

13 MRV Plan and sustainable development The MRV system focus Emission reductions: (UNFCCC) Small-scale Methodology: AMS-I.L.: Electrification of rural communities using renewable energy, Version 03.0 will be used to monitor GHG emission reductions. Sustainable development: Sustainable Development Evaluation Tool (SD Tool) developed by UNDP will be used. The SD Tool divides the SD indicators into four different domains: environment; social; growth and development; and economic.

14 Where can you find more about our NAMA? NAMA news: UNFCCC-NAMA Registry: SeekingSupportForPreparation.aspx?ID=123&viewOnly=1 UNDP: vironment-energy/mdg-carbon/namas/nama-on-ruraldevelopment-in-namibia-through-electrification-wit.html

15 National Contact Mr. Paulus Ashili Mitigation Lead focal point, DNA Namibia, Ministry of Environment and Tourism Phone: