NATIONAL ISSUES REPORT

NAMIBIAN ENERGY SECTOR - FOCUS ON MITIGATION

NATIONAL CLIMATE CHANGE

AWARENESS-RAISING WORKSHOP

Safari Hotel, Windhoek, Namibia

23-25 September 2008

Detlof von Oertzen

Desert Research Foundation of Namibia

Why energy is a key sector for Namibia

Mobility & leisure

Consumer choices

Habitat & lifestyle

Liquid & gaseous fuels

Mining, agriculture, industry &

manufacturing

Power generation

Electricity

Final Energy Forms

Liquid Fuels Biomass LP Gas Coal Renewables

Primary Energy Carriers

HydroNuclear

Accessible & reliable energy is the key to economic growth.

Energy Sources & Uses - 2007

Namibia's Total Energy Use by Sector (estimate) 2006

Mining, industry,

manufacturing & commerce

27%

Agriculture & fisheries

4%

Domestic9%

Transport60%

Namibia's Electrictricity Use by Sector (estimate)2006 (excl Skorpion)

Streetlights1%

Domestic - credit meter

16%

Domestic - pre-payment meter

12%

Mining & processing

24%

Water pumping2%

Commercial, industrial & agricultural

45%

APPROXIMATE Total Energy Consumption by Source Total ~15 TWh

Diesel & heavy fuel oils40%

Petrol: leaded & unleaded

20%LP Gas

1%

Electricity24%

Biomass15%

Renewables0%

* indicates estimate

Energy sector potentials for mitigation

Transport sector• enhancing the fuel efficiency of the national fleet

• incentivising fuel switching to LPG/CNG & biofuels

• increasing the application of energy efficiency measures

Electricity sector• Energy efficiency and demand management• Baynes hydro-electric generation scheme • Lower Orange / Divundu Popa - small hydro schemes• Renewables: biomass, wind, solar, geothermal, wave• Natural gas• “Clean” coal?• Nuclear?

Key issues: investment & financial flows

• Vision 2030 & White Paper on Energy• strategic direction of energy sector• structural aspects: responsibilities & support

mechanisms• incentives for energy sector developments

– taxes, tariffs and targets

• currency export caps• experience re clean-carbon projects• productive use of energy

Recommendations & Conclusions

• Energy needs to be treated as a cross-cutting economy-wide theme

• Strategic direction & targets– Energy Act & Energy sector regulator

• Tariffs, taxes & investment incentives

• Sector diversification

• Accessibility, reliability & affordability