ABSTRACT

At the beginning of the new millennium, it was estimated that about one-fourth of the world’s population (1.6bn people) have no access to electricity; the majority of those living in developing countries. Sub-Saharan Africa sits on some of the most significant potential fuel reserves in the world. Research suggests that, globally, no more than 20%, in some countries less than 5% of the population (2 % in rural areas) has access to electricity. In sub-Saharan In Africa, only about 8% of rural people enjoy access to electricity. Namibia’s White Paper on Energy (1998) reports that approximately 30% (national aggregate) of Namibia’s households were connected to electricity in 1997. Access to electricity is a pivotal enabler and precursor for sustainable development. It is without doubt an essential infrastructure prerequisite for e.g. economic growth, poverty alleviation, social transformation, transportation, health as well as environmental quality. In acknowledging the notable efforts that the Namibian has undertaken in electrifying settlements with specific focus on all active sectors of the economy, it is of concern that wider access to energy and economic sustainability of energy could only be provided at a slow pace. Facing the enormous task to supply electricity countrywide, NamPower, the stateowned power utility in partnership with the Ministry of Mines and Energy, is considering various options aiming at accelerating the implementation of rural electrification supply in Namibia. This study examined alternative technical options and funding possibilities, considering alternative institutional arrangements relating to funding of rural electrification in Namibia as well as identifying appropriate alternative technologies. The evaluation process includes the analyses of similar rural electrification programme in South Africa, Zambia and Botswana. In these countries, new approaches to energy infrastructure development seem to have been successful in extending rural electrification to wider network coverage. In the context of Namibia, institutional problems that have been experienced in implementing the rural electrification programme were evaluated and the findings entered the formulation of the Rural Electrification Distribution Master Plan 2000 and 2005, respectively. - iii - In order to obtain an insight into new institutional arrangements with specific focus on funding and appropriate technologies for rural electrification, the study draws from results offered by three case studies conducted in South Africa, Botswana and Zambia. In addition, cross references to lessons learned from renewable energy technology applications, successfully implemented in other parts of the developing world, are introduced to the investigation. This secondary research is aiming to crystallise the experiences gained during reform of energy supply in the countries, aforementioned. Departing from these findings, the study examines Namibia’s Rural Electrification Distribution Master Plans (2000; 2005) in order to identify areas that require alternative institutional intervention so as to increase the level of access of electricity in rural areas. This research was supported by limited structured interviews, conducted with resource persons that are considered experts in the many fields of the power supply and distribution in Namibia; the institutions targeted were mainly NamPower and the Ministry of Mines and Energy. Documentary information/data were collected from financial institutions that supports or provide micro-loans for solar PV such as Bank Windhoek, First National Bank of Namibia and Konga Investment. The outcome of the study indicates that there are several institutional problems hampering the implementation of the rural electrification programme notably:  a lack of financial and skilled human resources,  lack of role clarity in the public sector and the electricity distribution industry,  limited knowledge about the rural households income and energy use patterns,  inadequate policies/a less priority on power sector reform programme,  limited financing and the business not attractive for private investment initiatives,  limited applications of alternative technologies such as solar power, wind power,  low electricity demand and consumption that make the distribution thereof commercially not viable and not sustainable, - iv -  high cost of grid extension and connecting individual consumers that many a times are dispersed, inaccessible,  limited financing resulting from the business not attractive for private investment initiatives,  limited applications of alternative technologies such as solar power, wind power. The study also analysed the Energy Policy and identified several issues that requires to be revisited such as:  electrification fund has not yet been created as per the provision of the Policy and there are no clear strategies as how it will be implemented and administered,  access to electricity will not necessarily address direct benefits by the local communities as the proximity model used in the Rural Electricity Distribution Master Plan provides for a 500m free connection and thereafter prospective applicants for connection are required to acquire or pay for a supply of a transformer. This is a serious impediment to process of rural development and poverty alleviation.  The Energy Policy need to be aligned with the current socio-economic circumstance as well as incorporate the objectives and goals of Vision 2030 which was formulated five years thereafter. The study suggested several institutional options that need to be considered in order to accelerate the rural electrification program: 1. government should increase the annual budgetary allocation to rural electrification, 2. concessional loans where applicable and affordable should be considered in addition to other international development funding which has been made available for offgrid electrification, 3. local stakeholder should be involved in the planning and execution of rural electrification particularly when it comes to off-grid technology applications, 4. Incentives should be considered to attract private sector investment in rural electrification. A conducive environment for private sector participation should also be created in line with the provisions of the Energy Policy, 5. the establishment of the Electricity Fund should be accelerated, - v - 6. at policy level there is a need to revisit the Energy Policy f 1998 in order to address some inadequacies of the current policy instrument, 7. Government should consider in consultation with financial institutions the possible establishment of micro-financing schemes at local level to facilitate the provision of needed capital particularly for off-grid renewable energy technologies, 8. the Regional Electricity Distribution companies should assume certain responsibilities of contributing to the rural electrification program. It’s the author’s believe that studies of this nature can and should contribute to resolving obstacles that have impeded the swift implementation of the rural electrification programme. Findings of this study likely enhance the body of knowledge on the subject matter and possibly stimulate an academic participation in public sector policy processes through the informed provision of data aiming at strengthening policy making processes in Namibia.