ENERGY & SUSTAINABILITY News & Analysis
JANUARY, 2021
HIGHLIGHTS 2020 The Briefing and Analysis of RDJ Consulting (NAMIBIA) Windhoek, Namibia
THE 2020 HIGHLIGHTS WWW.RDJCONSULTING.CO.ZA
News & Analysis
From The Editor Quick Facts Economy at Large Oil & Gas Electricity Renewable Energy Water The Environment Roads & Transport Tenders and Careers Contributing Authors
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C ONT E NT S
ENERGY & SUSTAINABILITY
JAN 2020
FROM THE EDITOR RDJ Consulting Services CC is an advisory consultancy to the Energy, Water and Transport Sectors with a focus on sustainable operations and renewable energy.
PO Box 23738 Windhoek, NAMIBIA Telephone +264 61 400 171 EMAIL briefing@rdjconsulting.co.za WEBSITE www.rdjconsulting.co.za
2020 HIGHLIGHTS Dear Reader, It is with great pleasure that we welcome 2021 as it allows us to happily move into our fifth year of the RDJ Briefing, and I am very proud that it continues to provide an avenue for a quick summary of Energy and Sustainability key news headers, including a glimpse at the phenomenal Women in Industry and distinguished Youth in Action that continues to inspire our readers. After the Covid-19 pandemic hit in 2020 that caused the disequilibrium in many economies worldwide, thus 2021 is left with the challenge to combat the crisis and bring about innovations that can bring back stability for a sustainable future. In this edition, you will re-live some of the success stories featured over the past twelve months of the RDJ Briefing Publication. As a publication produced by our hardworking interns for you, we thus welcome all the support possible going forward, especially through placement of adverts,
media releases and publicity articles to support our young writers, as we continue to provide you with relevant and well thought news and research items for 2021. To find out more, please continue to enjoy reading this Publication and do join our conversations on Twitter and Wordpress . And, if you are new to the RDJ Briefing, subscribe to this FREE Publication at briefing@rdjconsulting.co.za and freely share the link with others that will benefit from its contents. Enjoy, #StaySafe! and a happy 2021 to you…. Comments are welcome!….
(David A. Jarrett) Editor
Authors RDJ Interns*
This report is a FREE Publication and was prepared by RDJ Consulting Services CC based in Windhoek, Namibia. The content is collected from publicly available information and so its accuracy cannot be guaranteed.
89%
Literacy Rate
-1.1%
GDP Growth (2019)
3.75% Repo Rate
66.6%
Employment
2.3M
7.50%
Interest rate (Prime)
2.4%
Population Size
Inflation (CPI)- July 2020
quick facts
8.8M
LTE
Telecom (sophistication)
Tourism, Mining, Fishing Industries
2.575
Million Mobile(cell phones) Subscribers
Water availability (cubic litres/capita)
484.000
Electricity Gen. in MW (Local)
629.000
Electricity Demand in MW (all)
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JANUARY, 2021
ECONOMY AT LARGE The Namibian Housing Market – An Analysis on Pricing Stability
Image showing housing in Windhoek, Namibia. Credit: RDJ Consulting
T
he Namibian property market has been correcting itself from the skyrocketing prices, especially in the capital city, Windhoek. The market is now in a
contraction of 2.5% y/y, Ondangwa (-34.7%), Rundu (-22.4%) and Ongwediva (-17.1%) respectively.
more stable state and is a key contributor to the gradual decrease observed in the Namibia Consumer Price index (NCPI) for the year 2019 and 2020 which currently stands at 2.50%.
The property market remains vapid as the price index remain poised uncertainly in a negative territory. This is attributed to the prevailing recessionary environment which has kept demand muted subsequently lowering prices. This translates to stability in The Namibian housing Market and improvements are expected to grow in the same direction with that of the economy at large. Predictions of the Namibian Economy done by Bank of Namibia (BoN) have leaned towards a positive sphere with growth expected to expand by 1.5% in 2020 and Inflation rate expected to fall. Based on this, it then expected that rental prices growth will mark a positive territory in the first quarter of 2020 before it stabilizes its long-term sustainable growth path.
The First National Bank (FNB) of Namibia published a Residential Property Report for January 2020, which indicated that the rental index contracted by 0.8% compared to 8.6% recorded in the same period of the preceding year. The recovery in this index resulted from price pressures coming from the 2-3-bedroom segments, which registered a growth of 6.6% and 16.2% year on year (y/y) respectively, compared to corresponding contractions of 10.2% and 11.7% year on year realized over the same period of the preceding year. Swakopmund recorded the highest rental prices in the fourth quarter of 2019, followed by Windhoek with an average of N$6 545 per month. Apart from Swakopmund which recorded a growth of 26.6% y/y and Oshakati with a growth of 6.7% y/y, most towns recorded a contraction in rental prices including Windhoek which reflected a
Readings: https://www.fnbnamibia.com.na/downloads/namibia/housingIndex /HousingIndexMarch2019.pdf http://namibiatradedirectory.com/wpcontent/uploads/2018/06/Housing-Index-2018_03.pdf https://informante.web.na/housing-market-stable/ https://www.bon.com.na/
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JANUARY, 2021
OIL & GAS Is Fuel Efficiency Our Next Low Hanging Fruit?
Image showing one of Shell's service stations (owner of Shell-branded fuels and lubricants that are marketed and distributed by Vivo Energy) in Namibia. - Image Credit: RDJ Consulting
A
lthough we have regularly updated you on the need for both energy efficiency and climate change modifications in terms of fuel use, Vivo Energy
(Namibia) deserves a mention. Vivo Energy established in 2011 as a “distributor and marketer of Shell-branded fuels and lubricants” has launched a new diesel fuel that is considered to improve fuel efficiency. This claim is based on their testing the fuel on 170 vehicles (cars) that covered some 3 million kilometers. The fuel utilizes what is called DYNAFLEX technology which essentially keeps the engine “clean”. They however caution that drivers will have different experiences based on their driving styles, engine design and conditions. Efficiency is basically “getting more done (output) with less (input)”. A vehicle and in this case, car fuel efficiency is very important to Namibia as it is estimated that fuel (comprising all oil products) use accounts for some 74.6% of all energy demanded in Namibia in 2017. Thus, it is fair to conclude that any efficiency will result in major savings both in terms of the import bill to the country and downward pressure on consumer income. On another note, the current Oil Storage facility which is to cater for 75 million litres of oil will go a long way as a
strategic asset and resource if the vehicles using that fuel are efficient. The plan is to ensure that Namibia has sufficient reserves nationally that would cater for between 30 – 45 days of normal demand. From extrapolation, fuel use daily is estimated to be between 1.7 - 2.5 million litres a day. Energy efficiency of 10% all around (inclusive of all vehicles) could see the Oil Storage moving from say 45 days to 48 days. The introduction of electric vehicles to say the Windhoek public transport sector could drive this efficiency number even higher. All in all, we feel that Namibia is in a good place to start looking at policy that could yield immense benefits going forward and salutes Vivo Energy for a step in the right direction.
Readings: https://www.vivoenergy.com/Where-we-Operate/Namibia/Productsand-Services/Our-retail-offer/Retail-Fuels https://www.iea.org/countries/Namibia https://www.namcor.com.na/news/34-billion-dollar-bulk-storagefacility-to-improve-strategic-fuel-reserves http://www.mme.gov.na/files/publications/763_Minister%20Speech %20Oil%20and%20Gas%20Conference.pdf (page 3)
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AUGUST, 2020
2021 JANUARY FUEL PRICES
N$ 11.35 per litre 95 Octane Unleaded Petrol
N$ 11.38 per litre Diesel 50ppm
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JANUARY, 2021
ELECTRICITY Energy Security - The Demand Challenge
Credit: RDJ Photo
W
ith the consistent rise and increased demand for electricity globally, Namibia can be described as “behind the curve� based on the
fact that over the last 3 to 4 years having to import approximately 65% of demanded energy from the region. While import, in and of itself is not a bad thing, the issue of energy security should be a concern.
The demand growth annually of approximately 4% means that some 160 MWh is required to meet this and would roughly require 60 MW of Solar PV not taking into account time of use complexities. Having contracted locally 170 MW of Solar and Wind since 2017, Namibia will only be meeting annual growth needs if not ramped up. Other measures have already started to impact the demand such as net-metering (assumed recently to be around 45 MW installed nationally) and various energy efficiency campaigns. This author is well aware that taking into account, time of use, then much more aggressive and innovative measures will be required to create the needed energy security. Some of these measures will require energy storage, solar thermal replacement of electric thermal and new generation. These needs thus will create new opportunities in all forms of renewable energies as Namibia moves forward and the modified single buyer market (MSB) is very timely.
Credit: RDJ Photo
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JANUARY, 2021
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RENEWABLE ENERGY Botswana and Namibia to Establish Solar Project
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ith the clear advantage of Botswana and Namibia being hot and dry for much of the year, the two countries have indicated they are
planning on setting up solar plants to achieve an aggregate capacity of 5 Gigawatts making them exporters of solar driven electricity. Renewable Energy would help both countries seeing as Namibia currently imports up to 70% of its electricity at times from neighbours such as South Africa, Zambia and Zimbabwe while Botswana depends on large scale thermal coal power plants utilizing domestic coal from reserves estimated at 200 billion tonnes. According to the Namibian Minister of Mines and Energy (Hon. Tom Alweendo), the southern African countries are working with Power Africa which is an initiative of the United States of America government to aid developing the structure of the project. He also added that an agreement to be signed will facilitate a full feasibility study to determine the size and the location of the various powerplants, cost sharing and other technical
details. Another point he mentioned was that the electricity will serve Namibia and Botswana and also be exported across the southern African region from this 20year project. It is anticipated that the activity will occur over three phases covering 300 – 500 MW, 500 – 1000 MW and then wrapped up with 1000 – 3000 MW accessing the regional power pool.
Readings: https://constructionreviewonline.com/2020/08/namibia-botswana-to-build5gw-solar-power-project/ https://www.usaid.gov/powerafrica https://www.namibiansun.com/news/namibia-botswana-to-build-solarproject2020-08-24/ https://ieefa.org/namibia-botswana-joining-forces-in-effort-to-develop5000mw-of-solargeneration/#:~:text=August%2024%2C%202020-,Namibia%2C%20Botswan a%20joining%20forces%20in%20effort%20to,5%2C000MW%20of%20solar% 20generation&text=Bloomberg%3A,their%20mostly%20flat%2C%20sunny% 20landscapes. https://www.pv-magazine.com/2019/09/04/namibia-and-botswana-mull20-year-5-gw-solar-push/
Credit: RDJPhoto
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JANUARY, 2021
WATER Namibia Dam Levels Update
SOURCE: NamWater's weekly dam bulletin - dated 18 January 2021
The graph above compares the current (18 January 2021) dam levels to the observations made in the previous year. Following widespread rains over the catchment areas of most of the country's dams recently, the water levels of most dams in the country have significantly increased. As the table indicates, the Oanob Dam and the Naute Dam water levels exceeded both dams' full storage capacity by the 18th of January 2021 in comparison to last year when about 37.7% and 77% full, respectively. Meanwhile, Neckartal Dam which was recently completed and now stands to be Namibia's largest surface water reservoir, with a storage capacity of 857 million cubic metres, is now 93% full. All this is seen as good for the country, especially after high record of animal loss since 2019 caused by the lack of sufficient water, along with other challenges. www.rdjconsulting.co.za
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JANUARY, 2021
THE ENVIRONMENT WASTE MANAGEMENT A Closer Look at the Structure and Functionality of the Kupferberg Landfill
Image showing Kupferberg landfill site - Credit: Google Earth map - Date Obtained: January 2020
W
aste managementeven with effective controls ultimately require landfills or other such storage sites for solid and other waste. Windhoek is no exception and so the main landfill site serving an estimated 900 000 households is located currently (January 2020) at the Kupferberg Landfill site. Kupferberg is located along the C26 road and some 13 km from the city centre/Central Business District (CBD) and is slated to have started operation in 1984. The City of Windhoek (which is the local municipality and operator of
the site, CoW) notes that solid waste management has improved over the years to be now run on sustainable principles. A waste site is only legalized once the Minister responsible for the Environment has followed a consultative process and declared the site via a regulation or the Gazette [Environmental Management Act 7 of 2007, Section 5 (2)]. The National Solid Waste Management Strategy (2018) identifies waste disposal as the main problem faced. Thus, its objective is the need to strengthen institutions,
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JANUARY, 2021
organisations and legal frameworks. Fines not exceeding N$500 000 or imprisonment or both can be levied against people who contravene the EMA 2007. The City of Windhoek is pushing a reduce, reuse and recycle philosophy that will help reduce the demand for Kupferberg. A project has been investigated to look at methane recovery and power generation at the Kupferberg Landfill site since 2011/2012 but has not materialized due to undisclosed barriers. According to the City of Windhoek handbook (info booklet), each household is entitled to have 240 litres (The size capacity of a “wheelie” bin) of household waste that will be collected on a weekly basis. This means that there is a potential for around 21.6 million litres of waste to be collected weekly (1.1 billion litres per annum). This is estimated while noting that some 30 % of the households are not City of Windhoek registered as these are informal structures and thus do not have an individual wheelie bin. In 2018, City of Windhoek allocated N$ 72 million to bring the Kupferberg site up to “code” as required by the national strategy.
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Readings & Notes https://allafrica.com/stories/202001080596.html http://www.windhoekcc.org.na/pdf/Councillor%20Ogranogram%20 2016.pdf https://cdm.unfccc.int/filestorage/0/1/K5PONHGIWD6BF71MYA2ET4 3SL9ZJ08.pdf/PDD.pdf? t=ZWN8cTRpdG1ofDBRukk2NFavoWJ6Wuz4J71H http://www.windhoekcc.org.na/pdf/citi_projects/InfoBookletSolidW asteManagement.pdf Environmental Management Act 7 of 2007, The National Solid Waste Management Strategy (2018) page 4 http://www.windhoekcc.org.na/depa_infrasolid_waste_management.php https://cdm.unfccc.int/filestorage/0/1/K5PONHGIWD6BF71MYA2ET4 3SL9ZJ08.pdf/PDD.pdf? t=ZWN8cTRpdG1ofDBRukk2NFavoWJ6Wuz4J71H http://www.windhoekcc.org.na/pdf/citi_projects/InfoBookletSolidW asteManagement.pdf Waste internationally is generally referenced in kg or tonnes. http://www.windhoekcc.org.na/pdf/Councillor%20Ogranogram%20 2016.pdf Remmert,D. and Ndhlovu, P. (IPPR), HOUSING IN NAMIBIA: RIGHTS, CHALLENGES ANDOPPORTUNITIES 2018 http://www.ippr.org.na/ https://www.thevillager.com.na/articles/12917/cow-set-aside-n72m-to-align-kupferberg-landfill-/
Sand mining in Namibia Credit: RDJ Photo
Kupferberg landfill - Credit: RDJ Consulting
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JANUARY, 2021
ROADS & TRANSPORT Walvis Bay Port Finally a Regional Logistics Hub
T
he Port of Walvis Bay in Namibia is the only deepwater port capable of handling large ships, and therefore serves as the logistical backbone for
several industries in the country. Other than benefiting the country, Namibia had set to become a Regional Logistic Hub through its long-term Vision 2030. This was to be made possible by the construction of a new container terminal at the Port of Walvis Bay which began back in 2014, and was successfully finalised in 2019. In fact, the terminal had been constructed on a 40 hectares of land reclaimed from the sea, which was expected to lead to more and sustained trade between countries of the Southern African Development Community (SADC) and the rest of the world. Supported by a loan from the African Development Bank (AfDB) at a cost of nearly $300 million, the terminal, commissioned in August 2019, is now fully operational, according to a report by the AfDB published on 3 September 2020. In fact, the report considers the project to have successfully achieved its goal, after terminal’s capacity was increased from previously 355,000 TEUs (20-foot equivalent unit) to now 750,000 TEUs yearly. The terminal is also reported to have also reduced vessel waiting time to less than 8 hours and cut container transit time from 14.5 days to 9.5 days.
During all the work done, seven pilots and 26 ship-toshore crane operators were trained, of which one was a woman. Furthermore, its expansion has steered Walvis Bay towards becoming a logistics hub for southern Africa that aims to meet the growing demand for freight, while promoting new maritime access to serve the landlocked countries SADC, as lined up in the country’s Vision 2030. The report further indicates that demand for services from the port of Walvis Bay has increased by about 8% following the commissioning of the new terminal. Cargo volumes, revenues and income from other services (maritime, port, berth and light dues, and other storage and handling fees) are expected to increase by at least 8% in 2020 and 2021, and will be followed by a further growth of about 5% yearly as projected by the report. Activities completed during the implementation of the entire project are shown in the diagram below.
Readings: https://www.namport.com.na/news/834/MIL-OSI-Banking-Namibia-WalvisBay-Port-now-a-regional-logistic-hub-as-new-container-terminal-fullyoperational/ https://www.afdb.org/en/documents/namibia-new-port-walvis-baycontainer-terminal-project-project-completion-report https://foreignaffairs.co.nz/2020/09/09/mil-osi-banking-namibiawalvis-bay-port-now-a-regional-logistic-hub-as-new-containerterminal-fully-operational/
The digram is a representation of specific activities carried out during the project's at the Port of Walvis Bay in Namibia.
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JANUARY, 2021
TENDERS
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Description: Expression of Interest for Consulting Services of the Ohangwena 2 Wellfield Bid Closing Date: 22/ 01/ 2021 @ 11:00
Position: Part-time Instructor/Lecturer (Two year contract) Location: Windhoek, Namibia Closing Date: 25/01/2021 00:00:00
Description: Expression of Interest for Consulting Services of the Oshakati Purification Plant Extension Bid closing date:Â 22/ 01/ 2021 @ 11:00 Description: Expression of Interest for Consulting Services of the Rundu Purification Plant Extension Bid closing date: 22/ 01/ 2021 @ 11:00
NAMPOWER Description: Construction of the Medium Voltage (MV) and Low Voltage (LV) Networks for Mukekete, Mpotomutalala, Nairenge, Suni, Katjinakatji and Kandumbu Localities in Kavango West Region Bid closing date: 05 Feb 2021 at 11:00 Namibian Time Description: Construction of MV and LV Networks for NamPower Rural Electrification at Shadimbungu, Kavitji, Dumushi, Ncorosa, Alloys Hashipara and Tam-Tam Junior Primary Schools in Kavango East Region Bid closing date: 05 Feb 2021 at 11:00 Namibian Time
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CONRIBUTING AUTHORS
David Jarrett (Managing Consultant) RDJ Consulting Services CC
Chilombo Olga Priscila (Operations Manager) RDJ Consulting Services CC
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