Energy & Sustainability News & Analysis
May / June 2017
Namibia
Country Briefing
Country Brief – NAMIBIA
April 2017
Quick Facts Population size Employment Literacy
2.30 million 66.00% 93.00%
Real GDP Growth 2016 1.00% Repo Rate 7.00% NCPI (Apr 2017) 6.70% Interest rate (Prime) 10.75% Budget (Current) N$62.54 Billion
Geographic size 824,292 km²
Free vector map of Namibia outline - by One Stop Map
Industries Telecom (sophistication) Mobile - cell phones
Tourism, Mining, Fishing
Water Availability / capita
154,000 Litres/capita
Electricity Gen. (Local) Electricity Demand (all)
LTE 2.575 million subscribers
484.000 MW 629.000 MW
Table of Contents Oil & Gas .......................................................................................................................................................... 3 Electricity ......................................................................................................................................................... 4 Renewable Energy ........................................................................................................................................... 8 Water ............................................................................................................................................................... 8 The Environment ............................................................................................................................................. 9 Roads and Transport ......................................................................................................................................10
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This report was prepared by RDJ Consulting Services CC based in Windhoek, Namibia. Its content is collated from publicly available information and so its accuracy cannot be guaranteed.
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Tenders ..........................................................................................................................................................11
Energy & Sustainability News & Analysis
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Country Brief – NAMIBIA
April 2017
Oil & Gas Namibia is presently evaluated as having 2200 billion cubic feet of gas, as reported in the January 2017 Oil & Gas Journal1. Prospective oil and gas operator Chariot2 plans to start drilling for oil in local waters. Namibia Chariot Oil & Gas has a timeline of upcoming activities for 2017 to 2019 as diagrammed below;
Liquid Fuels Petrol (95 Octane) - N$ 11.00 /L Diesel (500 PPM) - N$ 10.83 / L Diesel (50 PPM) - N$ 10.88 / L
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Namibia has no refinery capacity to-date
www.ogj.com http://www.chariotoilandgas.com
Energy & Sustainability News & Analysis
COPYRIGHT Š 2017 RDJ Consulting office@rdjconsulting.co.za www.rdjconsulting.co.za
Country Brief – NAMIBIA
April 2017
NEF Strategic Oil Storage Levy now increased from 1 March 2017 from 50 cents to 60 cents per litre.
$ 1.5 billion collected from the NEF strategic oil storage levy since its inception in 2012. N$ 3.1 billion paid to date towards the strategic oil storage project expenses.
Namibia currently ranks 14th in the Fraser Institute Global Petroleum Survey, 2016 of small reserve holders, placing Namibia 5 places ahead of South Africa. www.fraserinstitute.org
Electricity
0.7% of the Namibian labour force was employed by the electricity industry in 2016. This is an increase from 0.4% in 2014. NamPower will be paying for their power purchased from Zimbabwe directly to Standard Bank as a guarantee for the US$160 million (about R2.08 billion) loan advanced to the Zimbabwe Power Company (ZPC), for the rehabilitation of existing power infrastructure at Kariba South Hydro Power Station and Hwange Thermal Power Station3. The recently refurbished Van Eck power station is currently running way below capacity, as the national power utility, NamPower, grapples with rising input costs.4 WSP Africa said it has played a pivotal role in bringing about the development of the Diaz wind farm in Namibia. The wind farm aims to bring an additional 44MW to Namibia's national grid5. NamPower to build three plants to boost electricity security – 40MW biomass power plant at Otjiwarongo 20MW power plant at Otavi 1500MW CSP power plant at Arandis To date Namibia has commissioned power plants with a total capacity of 20 MW from Independent Power Producers (IPP). An additional capacity is still expected to make up a total of 70MW through the Interim Renewable Energy Feed in Tariff (REFIT) program.
Energy & Sustainability News & Analysis
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https://southernafrican.news/2017/05/22/nampower-guarantees-r2-billion-zpc-loan/ http://www.observer.com.na/index.php/component/k2/itemlist/search?searchword=nampower&categories= 5 http://www.namibian.com.na/55116/read/WSP-helps-Namibia-embrace-megawatts-of-power-with-Diaz-windfarm 4
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Country Brief – NAMIBIA
April 2017
Generation
Current Operational Generation: Plant Name
Installed Capacity
Ruacana
347 MW
Van Eck
120 MW
Paratus
24 MW
Anixas Omburu
22.5 MW 4.5 MW
Osona
5 MW
Otjiwarongo
5 MW
Grootfontein
5 MW
Anixas 4%
Omburu 1%
Grootfontein 1%
Paratus 4% Osona 1%
Otjiwarongo 1%
Van Eck 23%
Ruacana 65%
NDP5 Energy Generation Desired Outcomes 2017-2022
Nuclear? Russia has rekindled interest in building a nuclear plant. Currently visiting Russian Deputy Prime Minister, Yury Trutnev, has revived his country’s interest to build a nuclear power plant in Namibia and according to him, the new technology is 100 percent safe.6
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http://www.observer.com.na/index.php/national/item/8142-russians-rekindle-interest-in-nuclear-plant
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In April 2017, Swakop Uranium, the owner of the N$20 billion Husab Uranium Mine in the Erongo region, said it had submitted a proposal to the Ministry of Mines and Energy to set up a nuclear power plant in Namibia, a position confirmed by CEO Keping Zheng during the Mining Expo and Conference.
Country Brief – NAMIBIA Generation Imports
April 2017 80 MW
200 MW 39 MW
Apart from the above shown imports, Namibia is looking for additional MW’s to be sought from Zimbabwe to meet more of its energy demands. The outlook is for an additional 50 MW added to the current 80 MW. This is a move which will further the utilisation of N$ 50 million7 of subsidisation received by NamPower towards meeting energy import costs.
Transmission
The transmission network of 132 – 400kV Network has performed well through the period. As part of the NamPower Transmission Master Plan8, the following transmission projects have either been approved or are already in the implementation phase:
Kunene - Omatando development: 400kV but initially operated at 330kV. Rundu - Cuito development: This project is an upgrade of the existing 66kV system to a 132kV system. Gerus - Otjikoto 400kV line: This new 400kV line currently under construction forms part of the future 400kV backbone. This line will initially be operated at 220kV.
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Ministerial budget allocation 2017 / 2018 http://www.nampower.com.na/Page.aspx?p=187
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West Coast strengthening: This strengthening project also caters for the supply increase to 80MVA to Walvis bay.
Country Brief – NAMIBIA
April 2017
Distribution
The Electricity Control Board at its 95th meeting held on the 4th of April 2017 approved an 8% tariff increase, translating to an effective bulk tariff increase from N$ 1.49 to N$ 1.61 per kilowatthour (kWh)9. This is the amount that distributors and municipalities will pay when buying from NamPower as of 1 July 2017. The Control Board's Chief Executive Officer, Foibe Namene says the approved increase will help NamPower to cover its normal operational costs, cover part of last year's under-recovery of costs, help the power utility to fulfil its financial obligations - and ensure a continued supply of electricity. NamPower's financial obligations include payment to local, independent power producers. She also says the increase was approved to ensure the realisation of Vision 2030 and the Harambee. Energy regulator, the Electricity Control Board (ECB), has ruled out introducing a dual tariff system whereby industries and businesses pay more than ordinary consumers10. NDP5 Electrification Desired Outcomes 2017-2022
Power Africa launched a five-year project titled, Southern African Energy Programme, designed to increase the supply of and access to electricity in Southern Africa at the African Utility Week in May 2017.
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http://www.namibian.com.na/54265/read/Electricity-hikes-coming http://www.observer.com.na/index.php/component/k2/itemlist/search?searchword=nampower&categories=
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The 1 Million LED campaign for the replacement of one million critical incandescent bulbs in the residential sector is still being carried out by NamPower. DSM@nampower.com.na
Country Brief – NAMIBIA
April 2017
Renewable Energy Solar PV energy production (SMA Inverters only) May 2017 - 306 MWh Estimated giving the owners an estimated returns value of approximately 3 N$ 370 000.00 The Solar Revolving Fund has issued 628 loans (2016/2017) to the overall value of N$ 17 million. (An average loans valuation of N$ 27,070). It would be interesting to see dis-aggregation between solar water heating and photovoltaics versus on grid and off grid. Net-metering took full effect 15th May 2017. Non-TOU Net-metering Tariffs range from N$ 1.11 – N$ 1.21 dependent on Distributor area. http://www.ecb.org.na/
Water
Water demand in Namibia is met via surface and artesian sources. There has been more water availability in the country during the past two months, especially in the northern part of the country due to the recent rains and floods received. The overall Dam capacities had been recorded at 435.835 million cubic metres (Mm3) on 24th of April 2017. However, such levels have been declining since then, down to 414.041 Mm3 during May 2017. NamWater has been approved an increase of 13% in water delivery which became effective as of the 1st of June 2017.
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NDP5 Water Desired Outcomes 2017-2022
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Source: NDP 5 Energy & Sustainability News & Analysis
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Country Brief – NAMIBIA
April 2017
The Environment The Ministry of Mines and Energy’s(MME) Swakopmund Office to be completed and be a “green building” featuring Water Harvesting, Wind Turbines and Solar PV/Hot Water systems11. Earth Day
22 April 2017
World Environment Day
5 June 2017
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MME Budget Speech April 2017-18
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http://www.omalaetisupport.com/met/files/downloads/a7e_Guide%20to%20the%20Environmental%20Manageme nt%20Act%20no%207%20of%202007%20(GE).pdf
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Country Brief – NAMIBIA
April 2017
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Roads and Transport
Energy & Sustainability News & Analysis
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Country Brief – NAMIBIA
April 2017
Tenders
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http://www.namibian.com.na/54053/read/N$35m-cap-on-tenders
Energy & Sustainability News & Analysis
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ALL government tenders of more than N$35 million will be awarded by the Central Procurement Board13