By: Annakleta Haikera
High electricity tariffs and frequent power outages are placing financial pressure on the green schemes in both Kavango East and Kavango West.
At the recent stakeholder engagement with green scheme farm managers hosted by the Electricity Control Board (ECB) in Rundu, Kavango East Region, it was revealed that the total electricity bill for all state-owned green schemes reached N$34.9 million between October 2024 and September 2025.
According to Sikondo Green Scheme farm manager (who acted as the representative for all farm managers) Maxwell Nghidinwa, “Of this, N$12.6 million went to demand charges, with farms paying between N$260,000 and N$1.1 million per month.”
Nghidinwa warned that the high power costs are crippling production and cash flow, adding that reducing demand charges by half could boost output by up to 30%.
He urged the ECB and the Northern Electricity Distributor (NORED) to introduce seasonal tariffs aligned with irrigation cycles, along with incentives for renewable energy integration to enhance food security and sustainability in the Kavango regions.
Ndongalinena Green Scheme farm manager, Janno Rentel, warned that the costs drain cash flow and threaten production.
Rentel said energy expenses have become one of the biggest challenges facing green scheme farms.
“It takes away your cash flow at the end of the day; cash flow you need for other things like fixing tractors or buying new equipment,” he indicated.
“From harvest until you get your money, it takes a long time – sometimes up to six and a half months, while you still have to pay for electricity and other expenses,” Rentel narrated.
He also revealed that Ndongalinena pays about N$1 million per month in electricity bills, with demand charges making up nearly half of the total.
He cautioned that unless NORED offers affordable tariffs or renewable energy solutions, farms may be forced to generate their own power, which could result in NORED losing valuable clients.
Despite the strain, Rentel said the farm saw a successful harvesting season this year, delivering 3,800 tonnes of maize to AMTA from 350 hectares planted, up from 88 hectares the previous year.
He also welcomed the formation of a task force to review NORED’s tariff structure and its impact on agricultural production.
Meanwhile, ECB chief executive officer Robert Kahimise said the regulator’s role is to help the government strike a balance between energy security, affordability, and reliability while promoting local power generation to reduce costly imports.
Kahimise added that under NDP 6 and Vision 2030, the government aims to produce 80% of Namibia’s electricity locally and expand access to 70% of the population.
According to reports obtained by The Villager, Namibia’s green schemes were established to promote national food self-sufficiency and rural employment through irrigation-based agriculture.
However, many of these projects, particularly in the Kavango East and West regions have been struggling with high electricity costs, ageing infrastructure, and frequent power interruptions.
These challenges have made it difficult for farms to operate efficiently and achieve consistent production targets, prompting ongoing calls for tariff reforms and investment in renewable energy solutions.
