Events – EI – Sector – Namibia Investment Promotion and Development Board

Namibia Energy Sector Overview

Namibia’s energy sector presents a unique opportunity for investors seeking to tap into Africa and the world’s growing energy demand. As a country with abundant natural resources and a stable political environment, Namibia is well-positioned to emerge as a key player in the continent’s energy market.

Namibia’s energy mix is composed of renewable and non-renewable energy sources including green hydrogen and ammonia, oil and gas, wind, solar and biomass. In recent years, Namibia has made significant strides in developing its renewable energy sector, with several large-scale projects currently in operation or under construction.

The energy resources available in Namibia are: Green hydrogen and ammonia, Oil and gas, Solar, Wind, Indigenous gas resources, Hydropower, Coal, Biomass, Geothermal.

Explore our wealth of opportunities.

Key Players

The main players in the electricity supply industry (ESI) are the:

Ministry of Mines and Energy – setting out sector policy;
Electricity Control Board (ECB) – regulating prices, licences, and the market;
NamPower – the national generation and transmission utility – ring fenced into separate business units;
Regional Electricity Distributors (RED) – Own, operate and maintain the distribution network and supply to end customers or the local and regional authorities;
Independent Power Producers (IPPs) – selling power to contestable consumers over the national transmission network.

Policy

The three policies shaping future energy investments planning and decision making are:

Government’s medium-term goals and strategies are expressed in National Development Plans (NDPs). Namibia ratified its contributions to the Paris Climate Agreement, as codified in the Intended Nationally Determined Contributions (INDCs) to the United Nations Framework Convention on Climate Change (UNFCCC). Namibia’s INDCs commit the country to increase the share of renewables in electricity production to 70% and to increase energy efficiency and demand side measures.

The National Energy Policy 2017 sets out the government’s short to medium priorities for the energy sector. The main objective of energy policy is to provide “the security of all relevant energy supplies to the country; to create cost-effective, affordable, reliable and equitable access to energy for all Namibians; to promote the efficient use of all forms of energy; and to incentivise the discovery, development and productive use of the country’s diverse energy resources”. For the electricity sector specifically, priorities include (i) the development of local generation capacity to improve security of supply through appropriate planning at national level, (ii) reviewing the present electricity market model, (iii) ensuring the on-going viability and development of the transmission and distribution networks and (iv) strengthening the regulatory framework.

Through the National Renewable Energy Policy (NREP) of 2017, the government aims to support renewables expansion. Though not described explicitly as a “Policy Statement”, the Renewable Energy Policy states that “By the year 2030, Namibia shall strive to achieve 70% or more of electricity generated in the country to be from renewable energy sources. The above target relates to electricity (kWh) generated in the country”.

Licensing Framework

The legal framework of the energy sector is set by the Electricity Act 2007. It requires the regulator (ECB) to recommend to the MME the issuance of a licence, and the Minister approves the licences (new, suspension or cancellation). ECB approves the PPA tariff of new IPP licences.

Two Bills, currently with Parliament, could significantly impact the development of the electricity market and in particular the procurement and licensing of power generation projects:

The Electricity Bill, 2017;
The Namibia Energy Regulatory Authority Bill, 2017 (NERA)

Under the Electricity Bill, ECB will become the Namibia Energy Regulatory Authority (NERA).
The new Electricity Bill sees the introduction of the licensing for the storage of electricity; system operator; and market operator.

Opportunities

Discover investment opportunities in Namibia’s energy sector that present a promising return on investment for businesses looking to enter this growing market.

Renewable energy (hyperlinked to sector profile)
Oil and gas (hyperlinked to sector profile)
Green Hydrogen (hyperlinked to sector profile)

Why Namibia

Namibia’s government is actively working to attract foreign investment in the energy sector, offering a range of incentives to companies interested in developing renewable energy projects in the country. These include tax breaks, subsidies, and streamlined regulatory processes.

One key advantage of investing in Namibia’s energy sector is its proximity to South Africa, which is one of the continent’s largest energy consumers. This presents a unique opportunity for investors to tap into a rapidly growing market, with the potential for long-term, sustainable returns.

Sound financial system: Namibia boasts a stable financial system that offers a range of investment opportunities, making it an ideal destination for investors seeking to diversify their portfolios.

Strong macroeconomic framework: With a stable currency and low inflation rate, Namibia provides investors with a conducive environment for long-term investment planning and sustainable returns.

Commitment to fostering a conducive business environment: Namibia’s government has shown a strong commitment to creating a business-friendly environment, offering a range of incentives and streamlined regulatory processes to attract foreign investment.

Good governance, peace and stability: With a history of peace and stability, Namibia provides investors with a safe and secure environment to conduct business, minimizing the risk of disruption to their operations.

Globally competitive infrastructure: Namibia’s infrastructure is globally competitive, with world-class ports, airports, and road networks, making it an ideal location for investors seeking to establish logistics or manufacturing operations.

Young, educated and trainable workforce: Namibia’s workforce is young, educated and trainable, providing investors with access to a skilled labor pool that can support their operations and drive growth.

Access to markets: With access to key regional markets such as South Africa and Angola, Namibia offers investors a gateway to one of the fastest-growing regions in the world, providing access to a growing customer base and expanding market opportunities.

Contacts

Catherine Shipushu (Ms)

Senior Manager: Marketing, Branding and Communications Namibia Investment Promotion and Development Board

+264 81 127 9069
Catherine.Shipushu@nipdb.com

Hafeni Motsi (Mr)

Senior Consultant: Investment Analysis (Energy)
Namibia Investment Promotion and Development Board

hafeni.motsi@nipdb.com