By: Nghiinomenwa-vali Erastus
In an effort to increase access to electricity nationally from 59% to 70% by 2030, the government will allocate N$135 million and more in subsidies to electricity distributors.
This includes N$8 million in subsidy for the development of a solar mini-grid in Puros Village, Kunene Region.
This was revealed by the Executive Director and Accounting Officer of the Ministry of Industries, Mines and Energy, Ben Nangombe, during the signing ceremony of Service Level Agreements (SLAs) with regional electricity distributors.
“I wish to re-emphasise that we have 200,000 households to connect in the next five years. The only way to get there is through purposeful partnership, tight execution, and unrelenting focus,” he said.
Nangobe said the signing of Service Level Agreements with Regional Electricity Distributors and strategic partners is about the urgent matter of accelerating access and delivering electricity to Namibians who still live without it.
He explained that increasing access to electricity nationally from 59.4 % to 70 % by the year 2030 means connecting more than 200,000 additional households, many of them in rural and peri-urban communities.
The N$135 million will be distributed among electricity distributors including municipalities.
The City of Windhoek will receive N$30 million an increase from last year, N$15 million which they used to connect over 800 homes, mainly in peri-urban areas according to the Ministry.
CENORED will receive N$20 million for household electrification and an additional N$16 million for major upgrades at the Tsumkwe and Gam Solar Hybrid Stations.
Erongo RED which caters to coastal areas will receive N$20 million in subsidy.
As for the northern distributor, NORED is allocated N$30 million by the Ministry.
Oshakati Premier Electric (OPE) which is joining the electrification scheme for the first time as an implementing partner this year is allocated an amount of N$7 million.
In the south, //AU-OB RED is allocated N$12 million, supported by both in-kind and financial contributions from local authorities.
The Energy Ministry has also brought on board the Environmental Investment Fund (EIF), allocating N$8 million for the development of a solar mini-grid in Puros Village, Kunene Region.
Nangobe said this allocation is a first, but it will not be the last.
“Because our approach is clear – we will not only be partnering with electricity distributors, we are engaging other agencies and institutions that can help move the needle forward,” he added.
Nangobe has also indicated that the subsidy amount is not adequate if the country is to stay on track to reach the 70% target of electricity access by 2030.
Saying the Distributors must also contribute with their resources.
“That is why we are asking each of our REDs and partners to go beyond the allocations. We have called you to bring your resources, technical teams, donor networks, and procurement capacities to support the interventions and overcome any bottlenecks.
Nangobe has also revealed that all the entities that signed have committed to contribute, financially or in kind, depending on their capacity.
The Energy Ministry has also revealed that from the first round of SLAs last year, some valuable lessons were learned and for this next round they demand more accountability.
“That is why we now demand stronger reporting, clear cost breakdowns, transparent procurement processes, and firm implementation deadlines,” stated Nangobe.
He said “The SLA is not a cheque; it is a contract. And with that contract comes accountability. Comes attendant obligations. That is how we keep public trust and investor confidence,” he warned.
Electricity changes lives by powering home-based businesses; and helping children study at night.
It also allows a rural clinic to store vaccines and farmers to run water pumps.
The Ministry has also recognised that not every connection can or should come from the national grid.
In some areas, solar mini-grids or hybrid systems make more sense – in terms of economics and sustainability.
The Ministry remains technology neutral and assures that they will follow logic, not legacy.
For this, one of the allocations by the Ministry is to the development of a solar mini-grid.
Despite electrification efforts, the country’s generation capacity is yet to keep up with demands, with over-reliance on the seasonal Ruacana Hydro-project. erastsus@thevillager.com.na
