Technical Report: Clean Energy Capacity Needs: Botswana, Mauritius & Namibia

Transcription

1 Technical Report: Clean Energy Capacity Needs: Botswana, Mauritius & Namibia Romance Sampa, Energy Advisor Submitted by: AECOM International Development Submitted to: USAID/Southern Africa September 2011 USAID Contract No. 674-C DISCLAIMER The author s views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. PO Box Plot 50668, Tholo Park, Fairgrounds Gaborone, Botswana Phone (267) Fax (267) info@satradehub.org

2 TABLE OF CONTENTS TABLE OF CONTENTS... 2 LIST OF ACRONYMS... 4 EXECUTIVE SUMMARY INTRODUCTION... 9 Background... 9 Objective... 9 Scope of work... 9 Methodology ENERGY SECTOR OVERVIEW SADC context Botswana Table 1 Primary Energy Supply Table 2 Energy Consumption Mauritius Namibia Table 3 Energy Production Table 4 Energy Consumption RESOURCES, POLICIES AND INSTITUTIONS Clean energy resources Solar Energy Biomass Wind Hydropower Policies and legal framework Botswana Mauritius Namibia Institutional frameworks Botswana Mauritius Namibia Human Resources for Clean Energy Promotion Other

3 4. CONSOLIDATED CLEAN ENERGY CAPACITY ISSUES Overall assessment Botswana Policy and Legal Framework Institutional Framework Human resources for clean energy promotion Financial Resources for Clean energy promotion Mauritius Namibia Policy Framework Legal Framework Institutional Framework Human Resources Financial Resources for Clean Energy Clean Energy Information CONCLUSIONS AND RECOMMENDATIONS Conclusions Recommendations Policy and Legal framework Institutional Framework Human Resource Development Financing clean energy development REFERENCES ANNEX 1: LIST OF PEOPLE CONSULTED ANNEX 2: QUESTIONNAIRE

4 LIST OF ACRONYMS BOTEC BPC CDM CE CEB CET CTF DEA DOE DRC EAD ECB FIT GHG Ktoe kv MCTC MESD MET MEWT MLG MME MMEWR MPU MTI MW NAMREP NDP3 NGO NPC PUBCRET PPI RE Botswana Technology Centre Botswana Power Corporation Clean Development Mechanism Clean Energy Central Electricity Board Clean Energy Technologies Clean Technology Fund Department of Energy Affairs Department of Energy Democratic Republic of Congo Energy Affairs Division Electricity Control Board Feed-in Tariff Greenhouse Gas Emissions Kilo ton oil equivalent Kilovolt Ministry of Communications, Technology and Communications Ministry of Education and Skills Development Ministry of Environment and Tourism Ministry of Environment, Wildlife and Tourism Ministry of Local Government Ministry of Mines and Energy Ministry of Minerals, Energy and Water Resources Ministry of Public Utilities Ministry of Trade and Industry Megawatt Namibia Renewable Energy Programme National Development Plan, Namibia Non-Governmental Organization National Planning Commission Public Committee on Renewable Energy Technologies Power Producers Renewable Energy 4

5 REEEI RED RERA RIIC SADC SAPP SATH SHS SME SRF SSDG TWh UB USA USD Renewable Energy and Energy Efficiency Institute Regional Electricity Distributors Regional Electricity Regulators Association Rural Industries Innovation Centre Southern African Development Community Southern African Power Pool Southern Africa Trade Hub Solar Home Systems Small Medium Enterprise Solar Revolving Fund Small Scale Distributed Generators Terra Watt Hour University of Botswana United States of America United State Dollar 5

6 EXECUTIVE SUMMARY Background The objective of this report on capacity needs in clean energy policy institutional framework and human resources in Botswana, Mauritius and Namibia is to inform and input the SATH support to clean energy capacity activities to be implemented in collaboration with SADC, Regional Electricity Regulation Association (RERA) and the Southern Africa Power Pool (SAPP). Clean energy (CE) refers to renewable energy sources such as bioenergy, solar, wind, small and mini hydro, geothermal, and tidal waves. The assessment of clean energy capacities was undertaken between March and July 2011 to identify policy, institutional and human resource gaps that need addressing to promote clean energy and strengthen energy supply. The scope of the assessment covered: (i) the status of policy, planning and institutional frameworks for the promotion and deployment of clean energy (ii) the role and status of the private sector in the promotion and deployment of clean energy technologies (CET); (iii) the levels of coordination in clean energy promotion; and (iv) identifying the areas for possible capacity building support by SATH. The views of stakeholders in the CE sector on capacity gaps were supplemented by a review of government, SADC, RERA and SAPP documents to further identify capacity needs for promoting clean energy in Botswana, Mauritius and Namibia. Key findings Clean energy is a nascent sector in the region compared to conventional energy forms such as coal, and petroleum and as such has a number of issues affecting the promotion and development of clean energy. There are key capacity gaps in: (i) Policy and Legal framework (ii) Institutional support; (iii) Promotion and financing mechanisms; and (iv) CE promotion and finance mobilization. Conclusion Robust policy and legal frameworks are vital for attracting investment that will lead to the development and wider deployment of clean energy in Botswana, Mauritius and Namibia. Apart from Mauritius which is already formulating new policies targeting increased clean energy contribution to total energy supply Botswana and Namibia need to initiate similar processes as existing energy policies are out-dated. Departments in Botswana and Namibia responsible for the development and promotion CE need strengthening in terms of numbers, gender balance and skills such in resource assessment, pricing or technical evaluation of clean energy technologies. 6

7 Mauritius has developed a coordination mechanism that involves relevant stakeholders from both the public and private sector institutions to formulate policies and strategies to promote clean energy at the highest policy making level in government. In Botswana and Namibia the coordination mechanisms need revamping and strengthening and should include key stakeholders from the public policy, planning, training research institutions and private sector organizations to drive the national program for clean energy development. SATH should prioritize support to capacity building activities of Botswana and Namibia in the areas of CE policy formulation, planning, regulation and resource mobilization to lay the necessary foundation for sustained development and deployment of CE. Recommendations Policy and Legal framework In the case of Botswana and Namibia it is recommended that the current national energy policy be reviewed and a clear clean energy policy incorporating emerging issues of regulation, capacity building and national coordination mechanism. Consideration should be given to publishing a separate stand-alone clean energy policy document. Institutional Framework Energy regulatory frameworks need new structures and processes for supporting CE development. CE needs support instruments, such licences, tariffs- setting frameworks and package of incentives for investors in CE development. Human Resource Development A regional forum that will bring together policy makers, technocrats, regulators and private sector to share ideas and information on the way forward for renewable energy should be convened; Capacity development plans should address the role of tertiary institutions in building a CE literacy base for sustainability of future programs. Financing clean energy development Build capacity of institutions and human resources in the public and private sector in skills for mobilizing financial resources for CE. Skills are critically needed for accessing local and international finance for clean energy development such as concessional and innovative finance and international clean energy finance such as the Clean Technology Fund (CTF) developed to finance demonstration, development and transfer of low-carbon technologies with significant potential for GHG emissions savings or for example Clean Development Mechanism funds 7

8 (CDM) where clean energy projects developers may be eligible to sell carbon credits. Build national capacities for developing and utilizing market-based financing mechanisms and processes that leverage private sector resources. 8

9 1 INTRODUCTION Background The Project (SATH) supports the Southern Africa Development Community (SADC) to increase international competitiveness, economic growth and food security in the region. Key to the achievement of this overall goal is guaranteeing assured, and affordable energy supplies. In the energy sector, SATH works with SADC and its institutions - Regional Electricity Regulation Association (RERA) and the Southern Africa Power Pool (SAPP) - to strengthen the energy supply side with an emphasis on clean energy development. Clean energy (CE) refers to renewable energy resources such as bioenergy, solar, wind, small- and mini- hydro, geothermal, and tidal waves which exist in abundance in the region and are generally non-pollutant sources of energy. Although these clean energy resources occur throughout the SADC region they have so far not contributed significantly to regional energy supplies. Development and wider deployment of clean energy technologies in SADC is therefore a regional priority. SATH is supporting SADC; RERA and SAPP s capacity building activities that will increase the contribution of clean energy and promote clean energy economies in the region. Currently the regional energy scenario is characterized by (a) a power crisis caused mainly by rising demand not matched by adequate investment in generation and transmission thus restraining continued economic growth; (b) insufficient contribution of the abundant clean energy sources to the regional energy mix and security of supply; and (c) increasing concerns about harmful fossil fuel emissions and their contribution to global warming and climate change. As part of capacity building activities in support of SADC, the SATH Energy Advisor undertook an assessment of clean energy capacities in Botswana, Namibia and Mauritius between March and July 2011 to identify policy, institutional and human resource gaps that should be addressed to promote clean energy and strengthen energy supply. Objective The main objective of this report is to inform SATH activities and interventions for clean energy programs to be implemented in collaboration with SADC, RERA and SAPP. Scope of work The scope of the assessment in Botswana, Mauritius and Namibia included: (i) assessing the status of policy, planning and institutional frameworks for the promotion and deployment of clean energy; (ii) assessing the role and status of the private sector in the promotion and deployment of clean energy technologies; (iii) assessing the level of coordination and cooperation in clean energy promotion; and, (iv) identifying the areas for possible capacity building support by SATH. 9

10 Methodology Consultations were held with key energy policy stakeholders and planning departments, national power utilities, energy regulatory agencies, private sector independent power producers, clean energy technology distributors, NGOs, and energy training and research institutions. The views of the stakeholders were supplemented by a review of regional government, SADC, RERA and SAPP documents to further analyze and identify capacity needs for promoting clean energy in Botswana, Mauritius and Namibia. The questionnaires were also to be used for other SADC countries for comparative analysis. 10

11 2 ENERGY SECTOR OVERVIEW 2.1 SADC context SADC s overall objective for the energy sector is to ensure the availability of sufficient, affordable and acceptable energy services that are to act as a catalyst for the attainment of economic development and eradication of poverty, without losing sight of the need for an environmentally sustainable use of energy resources. The current SADC energy scenario is characterized by: Underutilization of the abundant CE resources such as hydro, biomass, wind and solar, which if harnessed could increase the security of supply, improve standards of living and help reduce greenhouse gas emissions (GHG) in the region; Regional electricity access averages 30 per cent, compared to a world average of 75 percent. The regional range of access is below 10 per cent in the DRC and Malawi, to over 80 per cent in South Africa, and 100 per cent in Mauritius. Botswana s access rate to electricity is 62 per cent; Power shortages negatively affect trade, industry and the delivery of social services and restrained general economic growth. The region s available capacity of MW against a demand forecast of MW in 2011, results in a shortfall of 2642 MW. Closing this electricity deficit by 2013 is a priority. The region s power deficit can be attributed to the following: Economic growth of more than 5% per annum in most of the SADC Member States results in unprecedented growth in electricity demand and. An increase in new mining activities in the SADC region in the last few years contributes to a growth in electricity demand. Inadequate investments in the electricity generation and transmission infrastructure over the last 20 years cannot maintain increased demand. Various national electrification programs currently underway contribute to increased demand. 2.2 Botswana Biomass (mainly fuel wood), coal and solar energy sources are the important indigenous energy resources in Botswana, as well as petroleum which is imported. The coal resource available is estimated at 212 billion tons with coal contributing the largest share of the primary energy supply at 29%, followed by petroleum and wood (National Development Plan (NDP) 10 p. 239). Coal-bed methane gas is estimated at 12 trillion cubic feet. Clean energy accounts for only 1% of the total Primary Energy Supply. 11

12 Table 1 Primary Energy Supply Primary Supply ENERGY IN 1,000 toe Percentage Indigenous Production Imports 1, Stock Change Total 1, Source: Ministry of Minerals. Energy and Water resources, Energy Affairs Division, Energy Statistical Bulletin The household sector is the largest consumer of energy followed by transport and mining. Household energy consumption is dominated by a dependence on fuel wood., When only commercial energy sources are taken into account (i.e. excluding fuel wood), the transport sector becomes the largest energy consumer of electricity at 49% followed by mining at 38% and the Agricultural and Construction sectors consume the least amount of energy. Table 2 Energy Consumption Consumer Coal (toe) Petroleum (toe) Electricity (toe) Total (toe) % Mining Agriculture Commerce Residential Transport Other Total % Source: Ministry of Minerals. Energy and Water Resources, Energy Affairs Division, Energy Statistical Bulletin Mauritius Total primary energy requirement In 2010, the total primary energy requirement increased by 5.8% from 1,347 ktoe in 2009 to 1,425 ktoe. Imported fuels (petroleum products and coal) accounted for 83.0% (1,183 ktoe) while local renewable energy supplied the remaining 17.0% (242 ktoe). Petroleum products amounting to 769 ktoe were comprised mainly of fuel oil (30.2%), diesel (27.9%), gasoline (16.6%), and aviation fuel (16.0%) in In the same year, coal was 414 ktoe, representing an increase of 12.2% over the 369 ktoe estimated in

13 Local production The local energy production (242 ktoe) for renewables includes bagasse (93.0%), hydro/wind electricity (3.7%), and fuel wood (3.3%) in This production was driven by an increase in the electricity produced from bagasse which reached 225 ktoe, compared to 218 ktoe in Production of hydroelectricity dropped from 10.7 ktoe in 2009 to 8.9 ktoe in Imports of energy sources Data on total imports of energy sources show that 1,498 ktoe of petroleum products and coal were imported in 2010 compared with 1,365 ktoe in 2009, representing an increase of 9.7%. Petroleum product imports increased from 1,019 ktoe to 1089 ktoe (+6.9 %) and coal from 347 ktoe to 410 ktoe (+18.2%). The import bill of petroleum products and coal increased by 36.8%, from Mauritian Rupees (Rs) 17,999 million (about US$666.6 million) in 2009 to Rs 24,620 million (about US$912 million) in Namibia In 2008, energy production in Namibia was about 317 kilo tons oil equivalent (Table 3). Oil, gas and coal sources accounted for percent while hydroelectric sources made up 67 percent of total energy produced. The main sources of power are the thermal and coal-fired Van Eck Power Station, the hydroelectric plant and the Ruacana Falls in the Kunene Region, and the standby diesel-driven Paratus Power Station at Walvis Bay. Connection to the South African grid allows for the import and export of electricity between the two countries. Table 3 Energy Production Energy Production (ktoe) Electricity Production from oil, gas, & coal sources (% total) Electricity from hydroelectric sources (% of total) Source: World Bank Data. Energy consumption amounted to 1,752 ktoe with fossil fuel energy consumption accounting for 71.6 percent in 2008 and biomass about 11.2 percent of total energy consumption (see table 5). 13

14 Table 4 Energy Consumption Energy Use (ktoe) Fossil Fuel Energy Consumption (% of total) Combustible renewable & waste (% of total) Source: World Bank Data The Ministry of Mines and Energy (MME) reports that approximately 80% of the rural population use biomass as their principal source of energy. Countrywide, between 15% and 20% of all primary energy consumed comes from wood. Nuclear Energy Namibia produces 5,000 tons of uranium annually and is the world s fourth largest producer, providing nearly ten percent of global needs. Namibia plans to develop its uranium resources and build its own nuclear electricity plant in future. 14

15 3 RESOURCES, POLICIES AND INSTITUTIONS This section outlines information on available and viable clean energy resources as well as policy and institutional frameworks in Botswana, Mauritius and Namibia. In many instances, specific information and statistics on clean energy for electricity generated from clean energy sources, number of systems installed, number of jobs created in the clean energy sector, and installed capacity is limited or non-existent. There is need to improve the availability of useful data on clean energy for planning, policy and investment decision making. In general, inadequate policies, legal, regulatory and institutional frameworks have been cited as serious constraints to energy development in the Southern African region 1. Stakeholders in the public and private sectors in Botswana, Mauritius and Namibia agree with this view and suggested that these are areas SATH could support to enhance the ability of institutions and human resources to effectively promote and implement clean energy programs. 3.1 Clean energy resources Solar Energy Solar energy is by far the most abundant of all energy resources in the three countries. Botswana has an average solar insolation of about 2.2MW/m 2 /year, while Mauritius has a good solar regime with a potential average annual solar radiation value of some 6 kwh/m 2 /day. Namibia also has a very high insolation of up to 2.5MW/m 2 /year and has one of the highest solar radiation levels in the world, averaging around 3,300 hours of sunshine per year with an annual mean solar radiation of 200 kw/m2. The southern most parts of the country experience up to 11 hours of sunshine per day. Biomass In Mauritius, biomass energy consists mainly of bagasse, a by-product of the sugar industry, and contributes about 22% of the primary energy supply. Electricity from bagasse roughly accounts for 0.4 Terra Watt Hours per year (TWh/y). During the crop season, bagasse is used by the sugar industry to meet all their energy requirements in terms of heat and electricity generation and surplus power is fed into the national grid. In Namibia, biomass resources from wood contributes between 15% to 20% of all primary energy consumed. Wind The wind regime in Mauritius is very good in some areas, with an annual average speed of 8.1 meters per second (m/s) at 30m above ground level. Namibia also has very favorable wind conditions along the coast with wind speeds of up to 10 m per second. 1 Economic Commission for Africa, Sustainable Energy: A Framework for New and Renewable Energy in Southern Africa. 15

16 Hydropower In Mauritius, hydropower plants have a combined installed capacity of 59 MW, which comprises the entire hydropower potential. Due to seasonal rain conditions and limited storage capacity, only two of the eight hydropower plants can generate year round during peak hours. The other six generate as and when water is available, primarily from January to March. 3.2 Policies and legal framework Botswana, Mauritius and Namibia have all put in place clean energy policies which they are implementing with varying success. In Botswana and Namibia, policies on clean energy lack visibility as they are overshadowed by conventional energy policies such as coal, petroleum and electricity. To overcome this, a review of the existing clean energy policies are required and a more comprehensive and stand-alone clean energy policy to capture new and emerging issues, such as feed-in tariffs (FIT), national coordination, regulatory framework, and incentives for independent electricity power producers, is needed. In all three countries there is no specific legal framework for the promotion and development of clean energy, and CE generated electricity is assumed to be implied in existing electricity legislation. New policies for clean energy need to address issues surrounding the development of clean energy, its transmission through existing grids, and how tariffs for generation and wheeling through the existing networks will be determined. CE policies must also address research, training and regulatory issues. A national coordination framework may facilitate various public and private sector efforts in developing and promoting CE. Botswana An important element of Botswana s CE related policies include maximizing the potential of clean energy sources to meet the socio-economic needs of the country, through: Decentralising the production and distribution of renewable energy to rural areas and the local community. Developing and implementing training and capacity building programs to develop the requisite skills in a broad range of disciplines targeting Small Medium Enterprises (SMEs) and personnel from local authorities and community development structures. Developing an integrated rural electrification program. A Feed-In Tariff scheme is currently being developed to increase the share of new, clean and environmentally friendly energy sources. The Electricity Supply Act of 1973 which provides for the issuing of power, generation and supply Licenses was amended in 2007 to allow for the creation and licensing of independent electricity producers and suppliers. Mauritius Mauritius has embarked on a comprehensive program of transforming the country into a sustainable island through the Maurice Ile Durable Project. In 2011, the Prime Minister 16

17 declared that Mauritius aims to obtain 35 percent of its energy production from CE within nine years. In this context, clean energy policies prioritize and encourage the greater use of local clean energy sources. The generation of electricity by small independent power producers (PPI) from CE sources is encouraged for direct consumption or to sell to the national power utility. In addition, the government has initiated a review and reform of the legal and institutional framework for the power sector and setting up of a regulatory body. A national clean energy development plan is also being finalized. Clean energy specific policies include: Enhancing the use of bagasse and mini-hydro; Developing wind energy to further diversify energy; Utilization of solar energy for electricity generation; and, Promoting private sector participation in the electricity market. Mauritius has a FIT scheme for bagasse and co-generation, and legislation for power generation from bagasse, based on the Sugar Industry Efficiency Act of 1988, was amended in Bagasse, a by-product of sugar cane production is co-fired in thermal power plants, thus contributing to the countries energy supply. Currently, co-generation accounts for close to 40 percent of the total national power generation capacity, of which 25 percent is based on bagasse. The feed-in tariff for co-generation is indexed to the coal price, the cost of living in Mauritius and the exchange rate. Mauritius is currently investigating the implementation of feed-in tariffs for other clean energy technologies. It is important to note that the national utility, Central Electricity Board (CEB), has issued a Grid Code for the connection of small scale distributed generators (SSDGs) of up to 50kW of clean energy which consumers can connect to the CEB s low voltage grid via inventers. The total installed capacity of SSDGs is limited to 2MW or 200 installations, whichever comes first. Namibia Namibia s National Development Plan (NDP3) recognizes the potential of clean energy in the sustainability of the energy sector in Namibia. The long-term goal of the NDP3 is ensuring adequate, secure and efficient supply of energy that is environmentally friendly and leads to a reduction in the country s reliance on energy imports. Other strategies include increasing local energy generation with conventional and renewable technologies. In addition, the 1998 White Paper on Energy takes into account clean energy options. Namibia is also developing a nuclear energy policy to cover the entire nuclear fuel cycle consisting of uranium exploration, mining, milling and nuclear energy generation. The White Paper on Energy promulgated by Parliament and the Electricity Act of 2007 forms the energy legal framework for the countries energy sector. The Electricity Act prohibits any person from generating electricity, trading electricity, transmitting electricity, supplying electricity, distributing electricity, importing electricity and exporting electricity without an Electricity Generation License. The Act, however, exempts power plants of less than a 500 kva capacity from obtaining such a license, where the electricity is not sold commercially. There is a need for explicit legislation to deal with clean energy related topics such as feed-in tariffs, electricity generated from clean energy sources, standards, and codes of practice. 17

18 3.3 Institutional frameworks Botswana The institutional framework consists of public and private sector organizations. At the central government policy level, there are a number institutions involved in various aspects of CE, including the Ministry of Minerals, Energy and Water Resources (MMEWR), the Energy Affairs Division (DEA), the Ministry of Environment, Wildlife and Tourism (MEWT), the Ministry of Local Government (MLG), the Ministry of Communications Technology and Communications (MCTC), and Ministry of Education and Skills Development (MESD). The MMEWR and the DEA are the lead institutions responsible for national energy policy formulation and coordination. The DEA is divided into ten sections: New and Renewable Sources of Energy, Biomass (recently renamed Bio Fuels Section), Oil and Gas, Coal, Energy Efficiency and Conservation, Electricity, Planning and Statistics, Communications, Policy and Sustainable Development and Administration. The MEWT is responsible for forestry and environmental conservation, long term research on fuel wood, productivity of natural woodlands and the promotion of fuel wood programs. The MLG, under its village infrastructure program, and the MESD focus on off-grid power supply, installation and maintenance of solar energy equipment in Government institutions in rural and urban areas. Energy research activities are carried out by the Rural Industries Innovation Centre (RIIC) which is involved with the development, testing and dissemination of reliable energy technologies. The Botswana Technology Centre (BOTEC) Renewable Energy Unit researches, develops and disseminates solar energy technologies. Energy research and training activities are also undertaken by the University of Botswana (UB), Faculty of Engineering and Technology- Centre of Study in Renewable and Sustainable Energy. The center focuses primarily on renewable and sustainable energy research, education, and advocacy. Energy regulation activities are administered by the Energy Affairs Division (EAD) in the absence of an independent energy regulator, however, the Government is establishing an Energy Regulator which will take up the responsibility for regulating both the Energy and Water Sectors. The Botswana Power Corporation (BPC) operates an existing 132MW mine head coal fired generation facility in Morupule which contributes around 25% of the country s total electricity requirements; the remaining 75% is imported. BPC is responsible for implementing a rural electrification in Botswana. The Meteorological Services Department under the Ministry of Environment, Wildlife and Tourism is responsible for the provision of meteorological information and advice to various sectors of the economy. Mauritius The Ministry of Public Utilities (MPU) is responsible for the design and implementation of the national energy policy, including the power sector (as well as the water and waste water sectors) and oversees the power utility, the Central Electricity Board (CEB). The CEB is also a generator and supplier of electricity and acts as the electricity sector regulator statutorily responsible for the control and development of electricity supply in Mauritius. 18

19 Namibia The institutional framework at the policy level involves the National Planning Commission (NPC), the Ministry of Mines and Energy (MME), the Ministry of Environment and Tourism (MET), the Ministry of Agriculture, the Ministry of Trade and Industry (MTI) as well as other key institutions with a bearing on the promotion of renewable energy. The MME is responsible for the development of energy resources, investment promotion, and minimizing the impact of energy exploitation on the environment. The ECB is responsible for regulating electricity generation, transmission, distribution, supply, and import/export through the setting of tariffs and issuance of licenses. NamPower is responsible for generation, transmission and distribution of power and managing Namibia s electricity network. In addition, there are Regional Electricity Distributors (REDs) jointly owned by NamPower and local Municipalities. At the level of research and training, the Namibia Polytechnic, Renewable Energy and Energy Efficiency Institute (REEEI) established in 2006, is the premier institution for researching and training in renewable energy and sustainable energy use and management. The REEEI also serves as the Secretariat for the National Technical Committee on Renewable Energy, the Public Committee on Renewable Energy Technologies (PUBCRET), and the SENSE-Network. The REEEI works with the MME and the Namibia Renewable Energy Programme (NAMREP) to address barriers to renewable energy in Namibia. 3.4 Human Resources for Clean Energy Promotion The human resources devoted to the promotion of renewable energy at the central government level in Botswana and Namibia is very limited and consideration should be given to increasing the Units responsible for CE. In the case of Botswana, there are two people responsible for CE at the DEA, while in Namibia there are three people in the Renewable Energy Division 2. There are plans by the public sector in Mauritius to build capacity through training programs in order to support energy efficienty and CE programs developed in collaboration with tertiary institutions. 3.5 Other Other noticeable gaps were the lack of national coordination mechanisms for CE activities. Policy, planning, training and research functions are spread out over a number of departments and ministries without a formal coordination mechanism in place. For example, CE related activities are considered the mandate of the Department of Energy Affairs in Botswana while CE is also a climate change mitigation strategy under the Ministry responsible for the environment. 2 While those employed have the required university training, there is a need for CE specific knowledge and skill development, and a representation of women. 19

20 4. CONSOLIDATED CLEAN ENERGY CAPACITY ISSUES 4.1 Overall assessment Clean energy is a relatively new area of focus in the SADC region compared to conventional energy forms such as coal and petroleum. A number of issues affecting the promotion and development of clean energy indicate a need for capacity development to achieve policy objectives: (i) policy and legal framework; (ii) institutional framework; and (iii) promotion and financing mechanisms. Mauritius is in the process of finalizing an energy strategy that accounts of the development of clean energy as a future energy supply option. Botswana and Namibia, however, require support to review their clean energy policies and legal framework that will create an enabling environment for increased private sector participation to develop sustainable energy options. Institutional capacity building in framing regulatory frameworks for clean energy is also required in all countries as well as support for start-up activities of clean energy regulation. Capacity building is also needed for project preparation and to access the various local and international financing mechanisms for clean energy. The available human resources require skills in clean energy resource assessment, planning, technology assessment, tariff setting and regulation skills. 4.2 Botswana Policy and Legal Framework Achievements The Botswana National Vision 2016 includes developing the country as a center of excellence for solar energy technology. BPC is the implementing arm for the solar energy based rural electrification program under the Department of Energy Affairs. The Electricity Supply Amendment Act in 2007 opened up the electricity sector to private sector participation. Challenges The draft National Energy Policy, started in 2003, must be revised to include clean energy. There is a need for a multi-stakeholder forum for the clean energy industry to develop a comprehensive clean energy policy that will address issues of sector coordination, clean energy development incentives, regulatory framework, training and research. Institutional Framework Achievements The existing institutional framework consists of government ministries, departments, Parastatals, NGOs, training and research organizations, policy implementing institutions and businesses responsible for different aspects of clean energy development. Specific CE activities concern policy formulation, climate change mitigation and adaptation activities, training and research, and dissemination of clean energy technologies. The Division of Energy Affairs is a focal point for all energy related matters and is responsible for the formulation, direction and coordination of the national energy policy. 20

21 Challenges CE development is the mandate of various Ministries and is not effectively coordinated. Different ministries have mandates over various aspects of clean energy such as the departments of environment, forestry, metrological information, agricultural resources (major source of biomass energy) training and research institutions such as the University of Botswana and the Botswana Technology Centre. These institutions lie outside the the Ministry responsible for clean energy, requiring an institutional coordinating mechanism or forum to provide an overall national direction to the development and promotion of clean energy. Human resources for clean energy promotion Achievements Since the early 1990s, there has been great interest in the development of clean energy projects and programs and trainings on clean energy have been conducted, including within the Department of Energy Affairs. Challenges Within the Department of Energy Affairs, the section responsible for clean energy policy, analysis and program implementation is small, consisting of two people. Inquiries into the capacity of DEA revealed that although the Department is being restructured, it is unlikely that this will lead to an expanded structure. Staff within the DEA also require training in clean energy issues. In general, capacity development in clean energy issues is required across various institutions in the country for the sustainable development and promotion of clean energy in the country. Financial Resources for Clean energy promotion Achievements There is official acknowledgement of the clean energy potential in social and economic development, particularly in rural areas far from the national electricity grid or where populations are too small to justify a grid connection. Through the national power utility, the government is electrifying rural areas using solar energy technologies. Challenges Up to 50 percent of government revenues are based on diamond export earnings. Government budget and operations are adversely affected during times of decline in the world demand for diamonds. Poor performance of diamond exports have impacted on budget allocations for the DEA and the section responsible clean energy. Other ministries and departments with a supporting role to the development and promotion of clean energy, such as BOTEC, have also suffered reductions in funding from central government. Current government budget allocations for CE activities are inadequate, unpredictable, are reducing each year, and are only sufficient to meet personnel obligations. Erratic budget allocations to clean energy activities are a major challenge to planning, implementation and training. 21

22 Botswana needs to develop the capacity of its institutions and personnel for clean energy projects. There are global opportunities and innovative clean energy related financing which is available to Botswana. 4.3 Mauritius Achievements Electricity access rates are 100 percent. Mauritius has systematically developed a coordinated policy formulation process concerning clean energy that is supported by an institutional framework and representative of public and private sector organizations. Government has made it mandatory for its institutions to use solar water heating. The publication of the Grid Code for Small Scale Distributed Generation (SSDG) is an important achievement to help the public understand the procedures for application, requirements of the Grid Code, and the Feed-in-Tariffs. Challenges Establishing a clean energy regulatory framework is needed to clarify areas of uncertainty such as the relationship between Independent Power Producers (IPPs) and the CEB as single buyer and to explain the regulatory policy for clean energy and incentives for private sector investment. The Regulator Act of 2004 is not yet operational and the private sector is pushing for an independent regulator. The installed capacity of SSDGs is limited to 2MW of 200 installations, whichever comes first. The public response, however, has exceeded this limitation. CEB is concerned with the impact on the stability of electricity injections from clean energy sources in response to grid connections. CEB requires training in order to evaluate the impact of clean energy electricity generation on the national grid. 4.4 Namibia Policy Framework Achievements The White Paper on Energy Policy provides guidance on the direction Namibia should take in developing its energy sector and aims to promote the use of economically viable clean energy technologies. Key milestones have included the establishment of the Solar Revolving Fund (SRF) and the government directive in 2007 making the installation of solar water heaters mandatory by all public and semi-public buildings. The role of clean energy in mitigating the disruptive impact of global climate change on socio economic activities has been recognized, and action has been taken thru the National Climate Change Policy and a draft Climate Change Strategy and Action Plan. Challenges The challenges that need to be addressed include: Update the 1998 White Paper on Energy Policy to provide guidance and support to clean energy initiatives in Namibia; Provide capacity building to high level policy and decision makers, including Government Ministers and Members of Parliament, for the sustainable promotion of renewable energy technologies; and, 22

23 Establish and promote a national forum to coordinate clean energy consultations and activities in Namibia. Legal Framework Achievements The Electricity Act of 2000enables the ECB to oversee the electricity sector and sets out guidelines for the application of electricity generation licenses, the obligations of licenses, and other general provisions pertaining to the sector. Challenges There is no specific legislation for CE, and the lack of an appropriate legal framework is a barrier for the promotion of CE and hampering the development of the renewable energy sector. In addition, there is need for building sufficient capacity of the electricity regulatory authority of the ECB to regulate emerging clean energy developments. Institutional Framework Achievements There are adequate institutions to address policy formulation and implementation, including research and training. The creation of the Renewable Energy Division within the Energy Directorate structure of the MME and the National Technical Committee on Renewable Energy, the Public Committee on Renewable Energy Technologies (PUBCRET) and the SENSE Network are important achievements to provide the necessary institutional framework for the development of renewable energy. Challenges Participation in the coordination forum by the MME has not been successful due to poor attendance by key stakeholders, including private sector participants. There is need to strengthen the regulatory framework to address concerns of public and private stakeholders. Human Resources Achievements Since the 1990s a number of technicians in the supply and installation of clean energy technologies have been trained in the private sector. REEEI is a hub for CE information, works to inform communities on CETs through the Energy workshops, and conducts training for public and private sector.. Challenges There are human resource constraints at various levels including policy, regulation, and program implementation. 23

24 Financial Resources for Clean Energy Achievements Government funding for clean energy programs has improved with more than 50 million Namibian Dollars being invested in the last ten years. Local financial institutions are making funding available to private individuals for RETs, such as installing solar water heaters, Solar Home Systems (SHS) and solar water pumps (Etango December 2010). Challenges There are inadequate incentives to support the promotion of clean energy due to a poor understanding of the role of clean energy in the economy. High installation costs for clean energy technologies and the lack of well-marketed, affordable and easily accessible schemes for the purchase, installation and maintenance of equipment are also major constraints. Clean Energy Information Achievements The dissemination of general information on issues and developments in the clean energy sector through publications such as Etango and the Annual Reports of REEEI are important tools to provide information and raise public awareness of the issues. Challenges The lack of official information on energy in the form of an Energy Balance is a challenge for analyzing and planning the energy scenario. There is no current information on the available potential of CE in Namibia. 24

25 5 CONCLUSIONS AND RECOMMENDATIONS 5.1 Conclusions Framing appropriate policy and legal frameworks is vital to the development and deployment of clean energy in Botswana, Mauritius and Namibia. Apart from Mauritius, which is already formulating new policies to target increased clean energy contribution to total energy supply, Botswana and Namibia need to start similar processes as existing energy polices do not give visibility to clean energy or attract private sector investment. Institutions and departments responsible for the development and promotion of clean energy are particularly weak and specific clean energy skills, such as resource assessment, pricing and technical evaluation of clean energy technologies, require capacity building programs to make institutions more effective. Mauritius has developed a coordination mechanism that involves stakeholders from both public and private sector institutions to formulate policies and strategies to promote clean energy. In Botswana and Namibia, the coordination mechanisms are weak and require participation from stakeholders from public policy, planning, training and research institutions as well as private sector organizations to drive the national program for clean energy development. Areas of intervention to support CE should prioritize capacity building activities of SADC, RERA and SAPP that focus on strengthening institutions and personnel involved in clean energy policy formulation, planning, regulation and resource mobilization as a necessary step for sustained development and deployment of clean energy for economic growth, job creation, and poverty reduction. 5.2 Recommendations Policy and Legal framework Botswana and Namibia should review the current national energy policy and develop a clear clean energy policy to incorporate regulation, capacity building and a national coordination mechanism. Consideration should be given to publishing a separate standalone clean energy policy document. Institutional Framework Energy regulatory frameworks need new structures and processes to support CE development and support instruments, such as licences, tariffs- setting frameworks and investment incentives. Human Resource Development Convene a CE regional forum to bring together policy makers, technocrats, regulators and the private sector to share ideas and information on renewable energy. Develop a capacity building program to address the role of tertiary institutions to build CE literacy. 25

26 Financing clean energy development Develop a capacity building program for institutions and personnel in the public and private sectors to mobilize finance for clean energy development, including concessional and innovative finance, international clean energy finance such as the Clean Technology Fund (CTF), and Clean Development Mechanism (CDM) where clean energy project developers may be eligible to sell carbon credits. Build national capacities to develop and utilize market-based financing mechanisms and processes to leverage private sector resources. 26

27 REFERENCES Ketlogetswe, C. (2009). Lessons and Challenges Encountered in the Implementation of Solar Energy The Case of Botswana. The Open Renewable Energy Journal, 2009, 2, Ministry of Minerals, Energy and Water Resources. (2010). Consultancy Services for the Establishment of an Energy and Water regulatory Authority in Botswana. Draft Report. Molosiwa, K. Acting Director of Energy Affairs. Undated power point presentation. Mothlathledi, F.O. (1994), Botswana Energy Policies and Plans Ministry of Mineral Resources and Water Affairs, Botswana. A paper presented at the USAID/Ministry of Mineral Resources and Water Affairs (MMRWA) Training Workshop on Opportunities for Renewable Energy Development, Gaborone, Botswana. Desert Research Foundation of Namibia. (2008). Namibian National Issues Report on the Key Sector of Energy with a Focus on Mitigation. Desert Research Foundation of Namibia. (2009). Environmental Impact Assessment CBEND Project. Ministry of Mines and Energy White Paper on Energy Policy 1998 Ministry of Mines and Energy Strategic Plan 2007/ /12 Office of the President, National Commission for Development Planning. An analysis of the Economic Challenges of Namibia and How the Donor Community should assist. Country Paper for the International Conference on Development Cooperation with Middle Income Countries (MICs), Madrid, Spain, March 2007 Polytechnic of Namibia, Annual Report 2009 Stephen Dearden, An Assessment of the EU s Namibia Country Strategy Paper Manchester Metropolitan University, Department of Economics (s.dearden@mmu.ac.uk) 27

28 ANNEX 1: LIST OF PEOPLE CONSULTED Botswana Ministry of Minerals Energy and Water Resources Name Position Address Mr. John Kaluzi Advisor Department of Energy Affairs Dr. Benoni Kofi Erskine Director Mr. Oagile Johannes Setlhare Ms. Mareledi Gina Wright Mr. Bidoh Kgaimena Ms. Meimah Keitseope Mr. Thuso C. Matshameko Mr. Aaron A. Sokolekae Senior Energy Engineer (Renewable Energy) Senior Energy Officer (Biomass) Energy Engineer (Energy Efficiency & Conservation) Senior Energy Engineer (Electricity) Acting /Chief Energy Engineer Botswana Technology Centre (BOTEC) Principal Energy Engineer (RE) Mr. James J. Molenga A/Principal Engineer Mr. Oaitse Kgaswane Assistant Renewable Energy Engineer Mr. Ntema Kopane HRAM Mr. H.S. Ntsowe Renewable Energy Engineer Mr. L.T.D Bafetanye Renewable Energy Mr. Tebogo Kemmifhele Architecture Mr. Jackson Aliwa University of Botswana Mr. S. Situmbeko Lecturer, Faculty of Engineering and Technology 28