2018 Briefing Highlights – NAMIBIA ENERGY &
SUSTAINABILITY News & Analysis
January 2019
Namibia January 2019
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Highlights
2018 Briefing Highlights – NAMIBIA
January 2019
Editor’s Note Dear Reader,
I
t is with great pleasure that as we present our third year of the RDJ Briefing. I am very proud that it continues to provide an avenue for a quick summary of Energy and Sustainability key news headers and our independently developed original research papers. I would also like to remind readers that the RDJ Briefing is developed through the medium of our hard-working interns to whom we are eternally grateful. The Year 2019 continues to have challenges that plague all areas of society with matters such as high fossil fuel prices, oil resource instability, increasing electricity tariffs and the need to fight climate change, matters such as the pending drought and water shortages will have dire social and ecological consequences. In the face of these challenges, it is clear that a change in direction and a focus on sustainable resources with clear benefits to managing resources, reducing the CO2 levels and meeting the United Nations Sustainable Development Goals (SDG’s), must be forefront of any solution or action. Thus, we will welcome any and all comments and support going forward especially through advert placements, media releases and publicity articles, as we continue to provide you with relevant and well thought news and research items for 2019.
Yours Truly,
David David Jarrett Editor
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editor@rdjconsulting.co.za
2018 Briefing Highlights – NAMIBIA
January 2019
Quick Facts Population size Employment Literacy
2.30 million 62.7%1 89.00%
GDP Growth 2018(P) 1.4% Repo Rate 6.75% Interest rate (Prime) 10.50% Inflation rate 5.60% Budget (Current) N$65.0 Billion2
Geographic size 824,292 km²
Free vector map of Namibia outline - by One Stop Map
Industries Telecom (sophistication) Mobile - cell phones Water Availability / capita3 Electricity Gen. (Local) Electricity Demand (all)
Tourism, Mining, Fishing LTE 2.575 million subscribers 8, 800, 000Litres/capita 484.000 MW 629.000 MW
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Namibia Labour Force Survey (NLFS) of the Namibia Statistics Agency (NSA) http://www.mof.gov.na/documents/27827/506801/Budget+Speech+2018.pdf/3f0b42f6-2c2d-4502-bca8b84f5d6951cc 3 2005 Figures https://www.greenfacts.org/en/water-resources/figtableboxes/aquastat123.htm
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2018 Briefing Highlights – NAMIBIA
January 2019 COVER PAGE IMAGE RDJ Photo
This report is a FREE Publication and was prepared by RDJ Consulting Services CC based in Windhoek, Namibia. The content is collated from publicly available information and so its accuracy cannot be guaranteed.
Advertising aligned with our objectives of Sustainable Resource usage is welcome. Contact Details; RDJ Consulting Services CC PO Box 23738 Windhoek, NAMIBIA
Editor: David Jarrett Author: RDJ Consulting Interns*
Telephone: +264 61 400 171 Email – briefing@rdjconsulting.co.za RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy.
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Visit our website www.rdjconsulting.co.za for more information.
*see editor information for full details!
2018 Briefing Highlights – NAMIBIA
January 2019
Table of Contents Editor’s Note ........................................................................................................................................... 2 2019 January:
RDJ News Briefs ......................................................................................................... 7
2019 economic perspective ................................................................................................................ 8 January 2019 Fuel price ...................................................................................................................... 8 SORED Namibia to be operational this year (2019) ............................................................................ 8 Namibian Dam levels .......................................................................................................................... 8 Ariamsvlei settlement in water crisis .................................................................................................. 8 Water rationing introduced at Gobabis .............................................................................................. 8 Seawater desalination......................................................................................................................... 9 Husab mine output prospects........................................................................................................... 11 2018 RDJ Briefing Review...................................................................................................................... 12 January 2018 ..................................................................................................................................... 13 Implementation of Irrigation Schemes ......................................................................................... 13 February 2018 ................................................................................................................................... 14 African Development Bank 2017 achievement in Green Energy Projects .................................... 14 March 2018 ....................................................................................................................................... 16 NamPower Cancels Xaris Deal ...................................................................................................... 16 April 2018 .......................................................................................................................................... 17 Namibia to phase out diesel 500 ppm in 2019 ............................................................................. 17 May 2018 .......................................................................................................................................... 19 Sunref Green credit line launched ................................................................................................ 19 June 2018 .......................................................................................................................................... 21 Potable and Sufficient Water Supply Needed .............................................................................. 21 July 2018 ........................................................................................................................................... 23 Increase in water and electricity tariffs ........................................................................................ 23 September 2018................................................................................................................................ 26 Schlettwein sees Kudu as a no go ................................................................................................. 26 October 2018 .................................................................................................................................... 27 Complete cancellation of Phosphate mining clearance certificate .............................................. 27 November 2018 ................................................................................................................................ 29 A glimpse at Namibia’s Future Energy Supply .............................................................................. 29
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December 2018 ................................................................................................................................. 30
2018 Briefing Highlights – NAMIBIA
January 2019
Time for Oil in Namibia? ............................................................................................................... 30 2018 RDJ Internship Program Review ................................................................................................... 31 March 2018: New Interns Intake ...................................................................................................... 32 27 April 2018: Public Presentation at UNAM on Solid Waste Management .................................... 33 30 July to 1 August 2018: The 3rd SADC Induistrialisation Week in Windhoek – Company Exhibition .......................................................................................................................................................... 33 11 September 2018: Public Presentation at UNAM on Solid Waste Management.......................... 34 Vacancies .............................................................................................................................................. 36 RDJ Consulting................................................................................................................................... 36 EDITORIAL TEAM ................................................................................................................................... 39
PHOTOS
Workshops, Discussions, Training, Public Talks, Teamwork…
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RDJ consulting Interns
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January 2019
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2019 January: RDJ News Briefs
2018 Briefing Highlights – NAMIBIA 2019 economic perspective The Bank of Namibia (BoN) said in their economic outlook report for December 2018 that despite economic challenges, they are expecting the economy to recover to a positive growth rate of 1.5% in 2019 from a contraction of 0.2% in 2018. Read more…
January 2019 Fuel price4 The Ministry of Mines and Energy has announced that the fuel pump prices for December decreased as of the 2nd of January 2019. Prices in Walvis Bay and countrywide are now as follows: Petrol (95 Octane) - N$ 12.05 /L Diesel (500 PPM) - N$ 13.08 / L Diesel (50 PPM) - N$ 13.13 / L
SORED Namibia to be operational this year (2019) The establishment of the Southern Regional Electricity Distributor is expected to be completed in 2019 following the finalisation of a formula that will reimburse local authorities for loss of income stemming from the creation of this company. Read more…
Namibian Dam levels Two of Namibia's central dams received inflows following good rainfall in their
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http://www.mme.gov.na
January 2019
catchment areas just before the New Year (2019). Von Bach's level rose 20 percentage points, from 41.5% to 59.6%, after taking in 9 402 million cubic metres since 31 December 2018. Read more…
Ariamsvlei settlement in water crisis A water crisis has hit the Ariamsvlei settlement in the //Karas region since December, leaving residents in despair. Residents of the settlement's Vergenoeg location are frustrated and angry that their taps have run dry, and called on the relevant authorities to intervene. Read more…
Water rationing introduced at Gobabis The Gobabis Municipality has started to ration water to its residents after NamWater reduced water supply to the town. NamWater shut down all surface water supplies due to the dire drought situation there. The manager of Corporate Communications at the water utility said that a meeting was held between the two stakeholders in January 2019 regarding the water supply situation at Gobabis. The water rationing which comes into effect on 11th January, will be in place daily until end February 2019. Read more…
2018 Briefing Highlights – NAMIBIA
January 2019
Seawater desalination AUTHORS Both authors (pictures on the right) are 2018 Research Interns at RDJ Consulting Services CC.
EDITOR David Jarrett Priscila Chilombo Olga
Karen Mangwendeza
Johanna Shihepo
MSc. Economics UNAM
BSc. Economics UNAM
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he Southern Africa region is traditionally a dry area where the access to clean drinking water is something the people who live there cannot take for granted. As the population increases along with industry and tourism, this increases the pressure on the water supply and will continue to put a strain on the region’s natural resources. It is well accepted that 70% of the earth’s surface water provides only 2.6% of the water suitable for human consumption, and not forgetting that wildlife also needs to drink from this water supply, the demand is great. This need, puts into perspective the urgency to find alternative water solutions. Water scarcity is fast becoming a global reality irrespective of where one may live. In countries like Namibia that scarcity is felt much faster and with more urgency.5 In a country (such as Namibia) where there is very little surface water, a lot of sunshine and a very long coastline, solar desalination is a suitable option. Desalination is the process of taking salt laden water or water that is otherwise unfit for human consumption and processing it into clean, fresh water. With initiatives like this, the Tourism industry for example can ensure that luxury accommodation in Namibia can remain luxurious because of access to adequate water for visitors and increased accessibility for local communities. It is however important that in doing so, the process of water desalination does not have its own knock on negative effects on other aspects of the environment.6
Figure 1: Arial photograph of Akutsima Desalination plant in Nothern Namibia (RDJ Photo)
The first large desalination plant in Sub-Saharan Africa was built in Namibia and inaugurated by Areva7 on 16 April 2010. It is considered large in terms of its output capacity, being able to produce fresh drinking water in terms of 20 million m3 per year. Known as the Erongo plant, it is located near
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https://www.arebbusch.com/conserving-namibias-resources-sustainable-water/ https://www.arebbusch.com/conserving-namibias-resources-sustainable-water/ 7 www.areva.com and https://www.orano.group/
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Wlotzkasbaken, 30 km north of Swakopmund. Its maximum capacity although 20 million m3 per year operates to supply some 13 million m3. The primary purpose of the plant was to supply the uranium mine at Trekkopje, located 48 kilometres (30 miles) inland. However, the Trekkopje mine never opened due to persistent low uranium prices, hence the desalination plant has a contract to sell water to the state-owned bulk water service provider NamWater and also provides some of the water requirements for the town of Swakopmund. During the 2016 drought Areva offered to sell its plant to the Namibian government for $200 million USD8. Discussions are ongoing to-date. The Areva plant utilizes reverse osmosis driven by electrical pumps fed from the national grid. One of the other methods for desalination known as “Solar desalination�, uses no fossil fuels as an energy source and thus no CO2 emissions during its process. The process relies on the heat from the sun to raise the temperature of the water enough for evaporation to begin, but not to reach boiling point. This simple, natural process of collecting evaporated water provides Figure 1: Areva Desalination Plant Image Source http://namibianminingnews.com Namibia currently with up to 8 m3 of drinking water a day. It is not necessarily only sea water that can be purified and turned into fresh drinking water. A great deal of the water used becomes polluted through agriculture, industry and even normal household use. The solar desalination process will also clean brackish water, poisoned or contaminated water and waste water. A practical example of this already exists in Namibia in the form of two small-scale, state-of-the-art Figure 2: Areva Desalination Pipelines Image source desalination plants which were inaugurated at the - www.namibiansun.com villages of Amarika and Akutsima in the Omusati Region. The desalination plants are a joint Namibia-German effort on solar-driven pilot plants to provide the local population with clean drinking water as an essential component of the overall Cuvelai water system, which seeks to find sustainable solutions to water supply.9 Both plants run exclusively on solar energy and without any chemicals added. This minimizes the adverse impact on the environment, while at the same time securing the self-sufficiency of the villages. Planning and implementation of the plants has been accompanied by community participation in the two villages to ensure that the offer of fresh water meets the needs of the local population and generates additional benefits, i.e. regarding health. Locals were trained in the everyday operation of the plants so that, on the one hand, their long-term operation is secured, and employment opportunities are created on the other.10
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Hartman, Adam (19 April 2010). "First desalination plant inaugurated". The Namibian.
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https://allafrica.com/stories/201010190266.html http://www.cuvewaters.net/fileadmin/edit/Downloads/Publications/CuveWaters-Factsheet-Desal2015.pdf
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PHOTOS Left and Right showing Amarika Desalination Plant water tanks and control room (RDJ Photos)
The viability of desalinations as one of the options towards attaining water security for Namibia is currently still debated but with practical pilot and commercial scale plants in operation, clear evidence exists to determine a way forward. As the driest country south of the Sahara, Namibia is running out of options to supply this precious resource to its growing population and industry. Desalination has far reaching implications for, among others, the government, industry, local authorities and consumers.11
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Husab mine output prospects Swakop Uranium's Husab mine is set to drum 5 000 tonnes of uranium oxide (U3O8) in 2019, according to a statement issued by the company's executive committee in December 2018. “To achieve this requires higher levels of productivity, in particular, mining ore recovery, plant recovery and runtime and availabilities of mining equipment and plant facilities. It is an ambitious challenge. However, we are of the view that the targets are achievable.” Read more…
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http://namibtimes.net/desalination-time-for-talk-is-over/
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2018 RDJ Briefing Review
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January 2018 Implementation of Irrigation Schemes12 By 2030, a total of 27 000 hectares must be under irrigation through the implementation of the green scheme programme. In order to ensure food security in Namibia, the ministry of agriculture, water and forestry says it will continue to implement irrigation projects along main perennial rivers and dams. These projects include the Sikondo and Musese in the Kavango West Region, Shadikongoro, Vhungu-Vhungu, Ndonga-Linena, Mashare and Shitemo irrigation projects in the Kavango East Region. Other projects are the Etunda, Hardap and Orange River irrigation projects in the //Kharas region. This is geared by the Fifth National Development Plan and the Harambee Prosperity Plan which outline that the agriculture sector is expected to put 27 000 hectares under irrigation by the year 2030 through the implementation of the green scheme programme. Currently, 11 500 hectares are under irrigation countrywide and the remaining 15 500 hectares need to be placed under irrigation over the next 12 years. Other projects include: Those in Katima/Liselo in Zambezi, Tandjeskoppe in //Kharas and Etunda phases 7 and 8 in the Omusati Region which are well on track; Climate Resilient Agriculture Project launched in December 2017 and funded by the Green Climate Fund through the Environmental Investment Fund. This project will to be implemented in the three vulnerable extreme northern crop growing regions of Kavango East, Kavango West and Zambezi; Namibia Agricultural Mechanisation and Seed Improvement Project which is funded by the Africa Development Bank to the tune of N$1.42 billion and has been approved for implementation; And the project that will support the livestock sector in the northern communal areas in the country, funded by the European Union under the 11th European Development Fund
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https://www.namibiansun.com/news/govt-to-continue-irrigation-scheme-implementation2018-01-18/
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February 2018
African Development Bank 2017 achievement in Green Energy Projects13 The African Development Bank (AfDB) achieved a 100% investment in renewable energy in 2017, a major landmark in its commitment to clean energy and efficiency. Power generation projects with a cumulative 1,400 megawatts exclusively from renewables were approved during the year, with plans to increase support for renewable energy projects in 2018 under the New Deal on Energy for Africa. “We are clearly leading on renewable energy. We will help Africa unlock its full energy potential, while developing a balanced energy mix to support industrialization. Our commitment is to ensure 100% climate screening for all Bank financed projects” said Akinwumi Adesina, AfDB President.
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https://economist.com.na/31775/special-focus/african-development-bank-achieves-100-investment-ingreen-energy-projects-in-2017/
2018 Briefing Highlights – NAMIBIA
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2018 Briefing Highlights – NAMIBIA
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March 2018
NamPower Cancels Xaris Deal14 The N$5 billion Xaris energy tender to construct a power station which NamPower selected conservatively in the town of Walvis Bay in an effort supply electricity to NamPower has been stopped. This came as a result of a spate of company shareholders and the concern that consumers will be paying exorbitant prices for electricity. It is reported that the Minister of Mines and Energy felt NamPower cancellation of Xaris is erratic and he is yet to make a civic announcement on the matter. Nonetheless, Xaris reported to have injected almost N$400 million into the project and thus threatened to take legal actions.
Figure 2: RDJ Photo showing transmission power lines
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http://allafrica.com/stories/201803010522.html
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April 2018
Namibia to phase out diesel 500 ppm in 201915 Ministry of Mines and Energy announced on 30 April 2018 that Diesel 500 parts per millions (ppm) will be phased out of the Namibian market as from 1 January 2019. Permanent secretary Simeon Negumbo said in a media statement the decision was taken due to newer vehicle models now on the market. He said this created a demand for low sulphur diesel or 10 ppm which would be introduced from 01 January 2019. “The phasing in of low sulphur diesel is also in line with the Namibian government’s policy of cleaner fuels and global initiatives to reduce CO2 emissions,” He added that the low sulphur diesel would allow the introduction of advanced engine technology that requires low sulphur. However, not all retail sites would have the cleaner diesel at the beginning. The implementation of the phase-out of diesel 500 ppm and introduction of diesel 10 ppm sulphur diesel in Namibia would be co-ordinated by the ministry, the statement added.
Figure 3: RDJ Photo showing a filling station in Namibia
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https://www.namibiansun.com/news/namibia-to-phase-out-diesel-500-ppm-in-20192018-05-01
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2018 Briefing Highlights – NAMIBIA
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2018 Briefing Highlights – NAMIBIA
January 2019
May 2018
Sunref Green credit line launched
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The Minister of Environment and Tourism, Pohamba Shifeta, officially launched the Sustainable Utilisation of Natural Resources and Energy Financing programme (Sunref Namibia) at Windhoek, Safari Hotel on Thursday, 24 May 2018.
The three-year SUNREF programme, developed by the Agence Française de Développement (AFD), known as the French Development Agency, will mobilise private Namibian banks to finance private-sector investments in green technologies in the sustainable agriculture, sustainable tourism, renewable energy and energy efficiency market segments. These, according to Shifeta, are critical green economy sectors that will open up considerable investment and employment creation opportunities in the country. The program is setup as follows. Project developer:
Project host:
Credit providers
Technical assistance providers: The Environmental Investment Fund of Namibia
AETS
Cardno
RDJ Consulting Services CC. (the local partner)
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Shifeta said that the programme, is worth 45 million Euro (N$670 million). Under the programme, the Namibian equivalent of 15 million euro is disbursed to the three of the local commercial banks mentioned above, and a one million euro grant has also been made available to the Environmental Investment Fund of Namibia to set up a Technical Assistance Facility that will simplify interactions between project sponsors and banks.
2018 Briefing Highlights – NAMIBIA
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During his speech, he emphasized on Namibia's commitment to the Paris Climate Agreement as embodied in the cabinet-approved Intended Nationally Determined Contributions (INDC) document of 2015, due to the fact that Namibia currently suffers immense losses due to the impacts of climate change in various sectors of the economy. The event saw the showcasing of similar projects financed through SUNREF South Africa and selected projects that had been financed by the Namibian commercial banks through the initiative. Since 2006, 42 SUNREF projects have been successfully implemented, in partnership with 70 local banks in some 30 countries of operation, for a total commitment of over 2.5 billion euro of loans allocated by AFD, of which 1.2 billion euro has been disbursed.
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Figure 4: Image Source https://www.sunref.org/en/
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June 2018
Potable and Sufficient Water Supply Needed Water is life, and without it, it is not possible to survive. Namibia, being a dry country and located at the coast of the Atlantic Ocean usually experiences the need for not only water in general, but also potable water. The areas mentioned below, are just a few.
a) Oukongo village16 The residents of Oukongo village in the Epupa Constituency which is just 15 km north of Opuwo, share the same water source with their livestock, despite their old requests for potable water. According to the residents, the sharing of water with livestock a practice that has been happening for years now, and the nearest place they can get clean water is Opuwo. However, The Epupa Constituency Councillor said that he is aware of the situation and acknowledged that there are several boreholes in the village, but they are mostly empty. According to him, the only borehole with water is too salty for human consumption. The current plan is to drill two boreholes in village again.
b) Sibbinda Constituency17 The residents of Sibbinda constituency located about 60 kilometres from Katima Mulilo in Zambezi Region, as well those in the surrounding villages, have been without water supply for almost a month. The water shortage is reported to have been caused by low water pressure in the main NamWater pipeline that supplies the rural settlement from Katima Mulilo. Presently, the community fetches water from a community member’s tap that uses a solar pump. Despite the water not being enough for the entire community, the tap has begun experiencing technical problems already. The residents are waiting on NamPower’s promise to fix the tap’s problem.
c) Omusati Region18 Some parts of Omusati Region are supplied with water which either has low or no chlorine, and as such it does not meet the prescribed World Health Organisation (WHO) standards which require that potable water contain about 0.2-1.0mg/l of chlorine. Water that is low or with no chlorine levels is
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https://www.newera.com.na/2018/06/01/oukongo-residents-share-water-with-livestock/ https://www.newera.com.na/2018/06/07/sibbinda-without-water-supply-for-a-month/ 18 https://www.newera.com.na/2018/06/25/omusati-water-low-in-chlorine/
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prone to organisms such as disease-causing bacteria and viruses to reproduce faster, thus compromising the health of people consuming such water.
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Environmental health practitioner at the City of Windhoek thus urged local authorities and water utilities to ensure they provide chlorinated water to the communities, in order to safeguard against water-borne diseases. He further said that water flowing a distance should be chlorinated again before it’s consumed, as it loses its chlorine in the transportation system.
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2018 Briefing Highlights – NAMIBIA
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July 2018
Increase in water and electricity tariffs a)Price increase in water services19 The city of Windhoek is introducing a raft of price increases, including the provision of services of which water is also incorporated. These increases were gazetted on 15 June 2018. The Gazette contains information on how much residents will pay for municipal services in 2018, including the increased percentages. The new prices are effective from 1 July 2018. The basic water rates for Windhoek will go up by 7%. The rates are determined by the diameter of the meter inlet, and will be payable whether the water has been consumed or not. This means that a household which spent N$156 on a 25mm diameter inlet will now pay N$168 for the same volume, the document states. Windhoek mayor said during a council meeting that the municipality was in the process of exploring the possibility of installing pre-paid water technologies in city homes.
b) NAMPOWER increased Electricity tariffs by 5% The Electricity Control Board (ECB) has approved a 5% bulk tariff increase effective since 1 July 2018, following a request by NamPower20. The increase entails the current N$1.61 in bulk tariff per kilowatt (kWh) hour to N$1.69, and is expected to help NamPower optimise its operational costs. All the NamPower bulk customers will be affected, such as regional electricity distributers, local authorities, regional councils and mines. The respective bulk customers should individually apply to the ECB for tariff increases that is applicable to customers.
https://www.namibian.com.na/69004/read/Going-gets-tough-in-Windhoek http://www.ecb.org.na/images/docs/Tariffs/NP_Press_Release_1819.pdf
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c) ErongoRED increased electricity tariffs by 4%21 The Erongo Regional Electricity Distributor, ErongoRED, announced in the week of July the 20th, 2018 that their customers have been paying 4% more for electricity since the start of July, 2018, as per Annual Tariff Adjustments for the 2018 financial year. ErongoRED CEO informed that NamPower’s electricity tariffs increase by 5% on average, has impacted ErongoRED as well. The impact of this on ErongoRED is 5%, which means the company will be paying an average of N$1.69 per unit on bulk tariffs. Based on this, and upon the application from ErongoRED on the new tariffs, the Electricity Control Board granted Erongo-RED an average tariff increase of 4% for its customers. This is, however, an average of different tariffs for different categories that would see an increase of between 2% and 5%.
d) NORED increased electricity tariffs by 5.5%22 The Northern Regions Electricity Distributor (NORED) had announced a 5.5% electricity tariff increase, effective as of July 1 for the 2018/19 financial year. According to NORED spokesperson Lukas Simon, the annual tariff increase is in accordance with Section 27 (2) of the Electricity Act 4 of 2007. Simon added that the increase is in relation with the approved NamPower tariffs adjusted at the beginning of the year to ensure a continued supply and distribution of electricity by NORED. In April, 2018 ECB approved NamPower’s tariff adjustment of five percent, which translated to an increase from N$1.61 per kilowatt-hour to N$1.69 per kilowatt-hour. Electricity distributors were individually required to apply to the ECB for tariff increases that will be applicable to the end-user customers. Despite the increase, Simon assured that NORED will continue with the rollout of support tariffs that will assist pensioners and other customers in reducing the impact of the high electricity tariff.
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https://www.namibian.com.na/69721/read/Erongo-paying-more-for-power https://www.newera.com.na/2018/07/26/nored-increases-electricity-tariff-2/
2018 Briefing Highlights – NAMIBIA
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September 2018
Schlettwein sees Kudu as a no go23 Government has effectively closed the curtain on the much-talked about Kudu Gas to Power Project after Finance Minister, Calle Schlettwein, said it should be abandoned. In an interview with the Windhoek Observer on Thursday, Schlettwein said the government is not willing to take on the risk of a project that it considers to be not financially viable. According to Schlettwein, the Kudu Gas to power project is not affordable both from a capital outlay and tariff point of view. He said developing Kudu means the financially-hamstrung government will have to close the door on other potential alternative sources of energy. “We have told NamPower to stop the project,” the finance minister said. “The financial risk is too big so we will not concede with funding it or accept financial risk. The much better option is for us to diversify our basket of the fuel that we use for power and concentrate on alternative sources”. NamPower announced in April that the planned Kudu Power Station would be down-sized from 850 megawatt (MW) to 442.5 MW after off-take agreements with South Africa’s power utility Eskom and Zambia’s Copperbelt Energy Corporation failed to materialize.
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https://www.observer.com.na/index.php/national/item/10375-schlettwein-kills-kudu
2018 Briefing Highlights – NAMIBIA
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October 2018
Complete cancellation of Phosphate mining clearance certificate24 The Economic and Social Justice Trust has written to the Ministry of Environment and Tourism asking it to permanently cancel the environmental clearance certificate of Namibia Marine Phosphate (Pty) Ltd to prevent the company from commencing phosphate mining operations off the Namibian coast. This occurred after a growing social and environmental concerns raised on about the implementation of the Namibian Marine Phosphate (NMP) project. Such concerns led the environment ministry on the 21st of June 2018, to set aside the environmental clearance previously granted to NMP on September 2016, in order to give an opportunity for to submit their opinions about the NMP. The deadline submissions lapsed on the 28th of September.25 The letter which was addressed to the Environmental Commissioner, highlighted numerous factors that justified the complete cancellation of the certificate. Hence in this letter, the benefits of Mining Phosphate in Namibia seems to have outweighed the consequence of proceeding with the project.
Figure 6: A comparison between yielding benefits Vs Consequences of mining phosphate in Namibia
https://neweralive.na/posts/calls-to-permanently-cancel-environmental-certificate-for-phosphate-mining https://thepatriot.com.na/index.php/2018/10/05/phosphate-mining-woes-continue/
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NO to Namibian Marine Phosphate Mining
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YES to Namibian Marine Phosphate Mining
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2018 Briefing Highlights – NAMIBIA
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2018 Briefing Highlights – NAMIBIA
January 2019
November 2018
A glimpse at Namibia’s Future Energy Supply In order to go in line with its National Integrated Resource Plan (NIRP), the Minister of Mines and Energy intends to install an additional capacity of 220MW within the next three years to ensure national plans and goals are met. This capacity is exclusive of any embedded generation or rooftop installation done by the regional electricity distributors, private companies and individuals. Apart from this, there are currently more than 14 IPPs in Namibia, and 11 of those projects which qualified for participation in the interim Renewable Energy Feed-In Tariff Programme have been commissioned, and now contribute to the country's electricity supplies with a total of 67,5MW-installed capacity. This equating to 15% of local generation capacity supplied, and is expected to increase by 41% in 2020. Furthermore, during the launch of the Ombepo 5 mw wind farm, the Minister stated their commitment of increasing the local electricity generating capacity from 400 to 600 MW. This includes providing electricity to all schools and health facilities by 2020, while increasing the rural electrification rate from 34% to 50% as well by 2020. The most recent National Development Plan 5, revised the energy situation of Namibia, and an even more ambitious target has been set by Government, where Namibia foresees achieving a sustainable mix of locally generated energy capacity of 755 MW to support household and industry development.
70MW to IPPs •20MW for Solar in 2020 •50MW for wind in 2022 Figure 7: Additional Capacity Breakdown
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Expanding the bulk transmission and distribution infrastructure Harnessing indigenous resources for generating energy Promoting the entry of Independent Power Producers Transforming the current power market structure.
150MW to NamPower
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Despite challenges such as existing long distances within country’s residential areas, as well as the buying power of the majority of people, the Minister of Mines is confident that the set targets can be achieved through the strategies as detailed in the NDP 5:
2018 Briefing Highlights – NAMIBIA
January 2019
December 2018
Time for Oil in Namibia? Author: David Jarrett, RDJ Consulting (December 2018)
The worldwide Oil and Gas sector has been an exclusive, powerful “club” over the years. Provision for this dominance is market driven with there being more oil consumer countries than oil producers. Also, oil and gas are finite resources making their increased consumption lead to a need for increased new finds. Scarcity ultimately leads to increase in cost and value. No wonder then, Namibia like any other country in its position, desires to join the oil and gas producers club. Entrance would provide for not only energy security but also revenue generation if found in sufficient quantity and quality. Many oil and gas explorers have come and gone since Namibia’s Independence in 1990. NAMCOR26 indicates that the first wells were explored in the 1960’s27. So far, the Kudu gas field which was discovered in 197428 is the only primary petroleum based find that has been declared proven and ready for commercialization. This has not daunted companies however and thus explorations continue into 2019. It can be further attributed to the fact that as stated by one company29, Namibia is a;
“a frontier region for exploration with evidence of a working petroleum system.” Namibia therefore is seen as a possible investment hot spot for oil and gas going forward. Interestingly enough, the indications from the news releases of the various companies that have attempted to explore wells so far indicate that the southern coastline emanating from the South African Border favours gas, while venturing further north towards Angola should yield oil. Sadly, it will take deep funding pockets to continue the needed exploratory work in the region if the wells explored keep coming back with “non-commercial30” results.
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National Petroleum Corporation of Namibia http://www.namcor.com.na/upstream/history 28 http://www.namcor.com.na/upstream/history 29 http://www.chariotoilandgas.com/operations/namibia/ accessed 7 December 2018 (21h36 RSA Time) 30 https://markets.ft.com/data/announce/detail?dockey=1323-13801062-0KC8D3LLRJ2KQP7R9D4SJ8TDV2 accessed 8 December 2018 (22h00 RSA Time)
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2018 RDJ Internship Program Review
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March 2018: New Interns Intake
January 2019
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January 2019
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27 April 2018: Public Presentation at UNAM on Solid Waste Management
2018 Briefing Highlights – NAMIBIA
January 2019
30 July to 1 August 2018: The 3rd SADC Induistrialisation Week in Windhoek – Company Exhibition
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11 September 2018: Public Presentation at UNAM on Solid Waste Management
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January 2019
RDJ still on the mission of providing you all the way with quality technical advisory services on Energy and Sustainability matters.
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2018 Briefing Highlights – NAMIBIA
2018 Briefing Highlights – NAMIBIA
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RDJ Internship Program offers: Public Speaking, Reporting and RealWorld experience to interns… …A Unique and Invaluable offer to yield professionally competent graduates!
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2018 Briefing Highlights – NAMIBIA
January 2019
EDITORIAL TEAM RESEARCHERS: Fares Shipaxu Chilombo Olga Priscila
WRITER: Fares Shipaxu Chilombo Olga Priscila
LAYOUT: Chilombo Olga Priscila
EDITOR: Chilombo Olga Priscila David Jarrett
REVIEWER Lahja Amaambo
PUBLISHER: RDJ Consulting
CONTACT: RDJ Consulting Services CC PO Box 23738 Windhoek, NAMIBIA Telephone: +264 61 400 171 Email – Briefing@rdjconsulting.co.za RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy.
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2018 Briefing Highlights – NAMIBIA
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