N$150 million German grant to boost electricity access
The National Planning Commission of Namibia, in collaboration with the mines and energy ministry, Nored and the German Development Cooperation via the KfW Development Bank, has signed a 7.5 million euro (approximately N$150 million) grant agreement.
Mines and energy ministry executive director Penda Ithindi said the N$150 million grant complements the ministry's budget and electrification plans, with the project expected to provide energy access to 18 000 to 20 000 people and nearly 4 000 new connections.
The funding aims to increase electricity access for households and small and medium enterprises in Namibia, particularly in peri-urban and rural areas in the northeast and northwest regions.
Currently, Namibia’s rural electrification rate is between 20 and 30%, with overall electrification around 55%. Many non-electrified areas are situated far from the grid and are sparsely populated, making them challenging to connect. The grant will cover the investment costs to ensure the long-term sustainability and economic viability of these new connections.
Development impact
By focusing on both peri-urban on-grid and remote off-grid electrification, the project aims to generate sufficient income for regular maintenance while maximising its developmental impact.
At the signing ceremony, the National Planning Commission's Obeth Kandjoze highlighted the importance of the project, noting that recent census data suggests the actual electrification rate might be even lower than 55%, particularly in rural areas. He emphasised the significant impact this project will have on increasing energy access in Namibia.
The project's preparation included comprehensive assessments and stakeholder engagement to identify the most eligible locations.
Nored’s acting CEO Toivo Shovaleka announced that project implementation would begin soon, with Nored overseeing the rollout and engaging service providers as needed. The project will also strengthen off-grid solutions, enhancing the capacity of operating providers.
German Ambassador Dr Thorsten Hutter added that the initiative aligns with Germany’s goals of promoting inclusive development and combating climate change. The project's success will be measured by the installation of 2 910 on-grid and 990 off-grid connections, as well as 400 kW off-grid power capacities.
Completion is expected by the end of 2026.
Mines and energy ministry executive director Penda Ithindi said the N$150 million grant complements the ministry's budget and electrification plans, with the project expected to provide energy access to 18 000 to 20 000 people and nearly 4 000 new connections.
The funding aims to increase electricity access for households and small and medium enterprises in Namibia, particularly in peri-urban and rural areas in the northeast and northwest regions.
Currently, Namibia’s rural electrification rate is between 20 and 30%, with overall electrification around 55%. Many non-electrified areas are situated far from the grid and are sparsely populated, making them challenging to connect. The grant will cover the investment costs to ensure the long-term sustainability and economic viability of these new connections.
Development impact
By focusing on both peri-urban on-grid and remote off-grid electrification, the project aims to generate sufficient income for regular maintenance while maximising its developmental impact.
At the signing ceremony, the National Planning Commission's Obeth Kandjoze highlighted the importance of the project, noting that recent census data suggests the actual electrification rate might be even lower than 55%, particularly in rural areas. He emphasised the significant impact this project will have on increasing energy access in Namibia.
The project's preparation included comprehensive assessments and stakeholder engagement to identify the most eligible locations.
Nored’s acting CEO Toivo Shovaleka announced that project implementation would begin soon, with Nored overseeing the rollout and engaging service providers as needed. The project will also strengthen off-grid solutions, enhancing the capacity of operating providers.
German Ambassador Dr Thorsten Hutter added that the initiative aligns with Germany’s goals of promoting inclusive development and combating climate change. The project's success will be measured by the installation of 2 910 on-grid and 990 off-grid connections, as well as 400 kW off-grid power capacities.
Completion is expected by the end of 2026.
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