ENERGY and more specifically the availability of electricity to power the economy is a challenge that has and continues to haunt us all, as Namibia is a net importer of power. The country will likely continue importing power until the end of the next decade.

Scary, as Namibia is reliant for its power needs to fuel the economy on South Africa’s Eskom, a public enterprise in serious decline. The economy cannot run, let alone grow, in the absence of a reliable supply of electricity.

Corporate leader Andre de Ruyter has now been appointed chief executive to restore order at debt-laden and grossly overstaffed Eskom. Goings-on for years, including corruptive practices in board and senior managerial appointments, the procurement of coal supplies and other needs, and lack of maintenance at power generating facilities, has all but crippled that country’s power providing parastatal.

Although investment strides in renewable energy have been made in Namibia, especially by the private sector and foreign investors, the country’s power generating capacity still falls far short of satisfying need. Development on this front has been impressive and solar parks are now commonplace, often visibly located at the entrance of a town.

Hopefully politicians and bureaucrats discarded red tape habits, are pulling out all the stops to facilitate, thereby hasten and expand the private sector’s investment in renewable energy. This is a smart strategy and will gradually reduce the importation of electricity and thereby dependence on South Africa and other neighbouring countries too, for Namibia’s power needs.

A private sector renewable energy initiative providing the Namibian public with an investment opportunity is Alpha Namibia Industries Renewable Power Limited (Anirep). The firm listed on the Namibian Stock Exchange (NSX) development board in September last year.

Reportedly, on listing Anirep raised about N$110 million of its N$250 million targeted needs to fund the identification of and for investment in viable projects. As an NSX listed entity Anirep must report its performance in the public domain. The firm’s year-end is February, so we will see how this fledgling entity in the renewable energy space is performing when it publishes its February 2020 annual report.

A development that seems rather out of sync with clean and renewal energy initiatives in Namibia was highlighted in this column last year, the public enterprise that entered the liquid fuel retailing sector, National Petroleum Corporation of Namibia (Namcor). That parastatal bought fuel outlets from foreign firms and rebranded them as their own and expanded its retail presence by constructing new outlets, including one at Hosea Kutako International Airport.

One hopes the board of directors and senior management of Namcor have taken note of developments in the renewable energy space, especially as it pertains to anticipating the future surface transportation mode for people and goods, and restrategising and aligning the parastatal’s growth accordingly.

Diesel engine vehicles are already shunned in Europe and in other parts of the developed world. More new model cars now have hybrid engines powered by petrol and battery. Diesel and petrol vehicles will sooner rather than later be found in museums and not on roads.

Although still uncommon on Namibia’s roads, there can be no doubt that electric vehicles are the future and liquid fuel powered ones are on the way out. Developments are moving at a breathtaking speed. Projections for 2019 are that electric vehicle sales should top 2,7 million.

Namcor could buck the trend and show that some of those running parastatals are business savvy and have foresight to see future consumer needs by creating recharging points for electric vehicles at their service stations.

* Reach Danny Meyer at danny@smecompete.com

Source: https://www.namibian.com.na/196970/archive-read/Power-For-The-People-ENERGY-and-more