The overall target of the NAMA is to support Namibia in achieving the goal defined in the Off-Grid Energy Master Plan(OGEMP), namely to provide access to electricity for regions, households and companies which are currently without access to electricity, as well as improving the share of renewable energies( mainly using solar energy). The NAMA will reduce GHG emissions through the replacement of fossil fuels with renewable energies and will provide the conditions for income generations and new business opportunities.
The NAMA covers two interventions. Under Intervention A, mini grids will be established in rural communities. These mini grids will preferably be in the vicinity of schools and potential future tourism projects, such as Eco lodges. The mini grids will use renewable energy sources (solar, wind, hydro) and will provide electricity for lighting, radio and phone chagrining for households, for service and production activities in Rural Production Zones (RPZs), and for lighting and internet for public buildings. The mini girds to be financed will be selected using the approach of “reversed auctioning”. Under reversed auctioning, offers are accepted, starting from the cheapest, until the budget available for the specific auction is used up. In the case of the mini grids, auctioning on value for money. Proposals will be ranked by their standing in the Value for Money Index (VMI), calculated as “grant support requested (in N$) per one OGEMP Point Score”.
Intervention B will support the installation of Energy Zones (EZs). Currently, so-called Energy Shops sell suitable, approved energy products and compatible appliances to consumers. These will be developed into the concept of Energy Zones, by adding a Rural Productivity Zone component.
In its first phase, the NAMA aims to establish 10 mini grids and 13 Energy Zones. This will provide electricity to around 1,400 households and around 8,500 people. Over the 15-year lifetime of the NAMA, emission reductions will reach around 20,000 tons of CO2. Around 80 new enterprises will be established through these two interventions.
Capacity-building will be a key component in the implementation of the NAMA. Special emphasis will be given to identifying and supporting the development of income-generating activities in the Rural Productivity Zones (RPZs), as this is the key to positive rural development. Another important component will be technical support during the identification and implementation of the different projects under the two interventions, as the aim is to implement technically sound projects with low operating costs.
The baseline scenario for this NAMA consists of two components, a GHG baseline and a sustainable development (SD) baseline. Setting the baseline scenario in this way allows all effects to be properly assessed and quantified through the monitoring activities described in the Measurement, Reporting and Verification (MRV) system. In the MRV, the UN Framework Convention on Climate Change’s (UNFCCC) “Small-scale Methodology: AMS-I.L Electrification of rural communities using renewable energy, Version 03.0” will be used to monitor GHG emission reductions.
Total costs of the NAMA are estimated at around US$13 million. This includes support to cover the investment costs of the two interventions as well as extensive capacity-building efforts. The Namibian Government is committed to providing around 30 per cent of the required funding, while the private sector is expected to contribute around 15 per cent. The remaining 55 per cent is expected to come from NAMA donors.
Implementation of the NAMA will be led by the Ministry of Environment as the NAMA Coordinating Authority (NCA). The Ministry of Environment has already been appointed as NAMA Approver/Focal Point to the UNFCCC and as the National Designated Authority (NDA) to the Green Climate Fund (GCF). The Environmental Investment Fund (EIF) will take on the role of NAMA Implementing Entity (NIE) and will be supported in technical issues by the Namibia Energy Institute (NEI). The Namibia Climate Change Committee (NCCC) will act as the supervisory board for the NAMA.
The two interventions of the NAMA will be implemented over a period of three and a half years, the NAMA will be supported by capacity building over a period of 5 years. Initial efforts will focus on securing national and international funding as well as establishing the institutional structure. Implementation of both interventions will take around two and a half years and will be supported by extensive capacity-building efforts. After the implementation of the interventions, the NAMA will operate over a period of 15 years.