Chief executive of the Electricity Control Board (ECB) Robert Kahimise says Namibia intends to continue its exploration of fossil fuels as a means of addressing the persistent challenges in electricity provision.
The decision comes in light of the country’s overall electrification rate hovering at approximately 50%.
Kahimise said while there is a push for renewable energy sources, local demand has to be considered if the country wants to address electricity provision.
“Load-shedding will change your priorities. There is no way you can ignore coal, while your people are suffering and your industries are suffering (from a lack of electricity). That’s the unfortunate situation where coal will still be utilised,” Kahimise said.
Kahimise was speaking at the launch of the ‘Understanding Your Electricity’ consumer education initiative in Windhoek yesterday.
Last year, the ECB announced that fewer than 4 000 houses are connected to the grid per year. At this rate, by 2040 only 40 000 to 80 000 new connections will be made. To achieve the universal electrification target in 18 years, about 30 000 new connections need to be made annually.
Kahimise pointed out that the expansion of the primary grid to remote areas faces financial hurdles due to several factors. These include the elevated unit cost associated with serving thinly populated regions, the complexities posed by challenging terrain, and the demands on infrastructure.
Last year, executive director in the mines and energy ministry Simeon Negumbo said the government has a target to electrify every Namibian household by 2040. Negumbo, however,said achieving universal access to electricity is easier said than done.
“Namibia is a very large country and has a very small population. As a country, we have a population density of around three persons per square kilometre. Extending the grid to all the corners of our country in this context is very expensive, as electricity infrastructure must be maintained and replaced when it gets old,” Negumbo said.
Negumbo said while it might take long to reach the desired electrification rate, every little milestone counts as an achievement, considering limited resources and the competing needs for rural electrification.
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Speaking at the launch, Kahimise highlighted that the substantial tariff charges imposed on electricity users are shaped by various expenses, such as import costs and the costs incurred in local electricity generation.
“As the ECB, our goal is to simplify complex electricity usage concepts and to address common misconceptions and perceptions that often hinder consumers from understanding the electricity value chain and making informed decisions on electricity as a product,” Kahimise said.
The initiative aims to simplify and explain the tariff determination process, the use of the National Electricity Support Tool (NEST) webtool and the opportunities embedded in the modified single buyer (MSB) market model.
The NEST webtool can be used by electricity consumers to simulate their electricity usage and tariff in real time. On the other hand, the MSB market model encourages competition through alternative generation sources and in turn reduces the cost of imports that may lead to a reduction in electricity tariffs.
“We aim to empower and educate our consumers to understand electricity tariffs, savings, electricity usage and the way the Namibian electricity market operates. So, our commitment to the consumer is not just to inform but to transform consumer behaviour towards electricity as a commodity,” Kahimise said.
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