Headquartered in Windhoek, HopSol Africa (Pty) Ltd provides on- and off-grid renewable energy solutions for photovoltaic power plants across the country. Establishing a diversified energy mix is a stated priority of the Namibian government, which is committed to reducing reliance on electricity imports and implementing cheaper energy tariffs. Energy Capital & Power spoke with CEO Silvester Wayiti about the challenges and opportunities associated with an expanded solar PV market, as well as Namibia’s pathway to achieving energy security.
Where do you see the most growth opportunities in Namibia over the next five years?
We see a lot of development and growth in the renewable energy space fuelled by an abundance in solar and wind energy resources, a regional energy crisis and growing energy demand. When you look at the recent oil and gas discoveries in Namibia, as well as green hydrogen initiatives, you will see drive and growth in this economy. A lot of people will come to Namibia, and from an energy point of view, we will see growth in energy demand. Therefore, we need to have industry participants gearing up and preparing for this growth. As an energy solution provider, HopSol is well-positioned.
What barriers exist when it comes to developing and expanding the solar PV market in Namibia?
There is not one single inhibitor, but there are several challenges. We have a very good Electricity Act that shapes a relatively strong regulatory framework, but obviously it needs to be enhanced with time as technology is evolving. We are seeing that technology is moving faster than we can update our policies and acts to ensure that all kinds of power generation, the challenges they bring and the mode of dealings are all being addressed. Another issue is tax laws, which need to incorporate some sort of incentives for key imports of value to the Namibian renewable energy market. Also, the population is very small, which is why manufacturing entities and companies have previously not been here. So, we find ourselves having to import key materials like solar modules, inverters and other mechanical structures that we use, but at times there are no tax breaks on these, implying not so competitive energy solutions. As much as we want to generate more energy to meet the energy deficiency that we have, it must also be cheap and affordable to ensure increased access and investor-friendly tariffs.
Given Namibia’s immense solar potential, how can solar PV be better integrated with national and regional transmission grids?
There is a need for industry participants from different sectors – that is the energy sector, government institutions and financial sectors – to come together. I do believe the integration of solar PV or any renewable energy projects can be better facilitated by bringing everyone on board, and we need to start with the national utility, who are the grid operators. We need to understand their transmission masterplan, the planning, the funding needs and overall expectations from the grid operator. This way, other participants like project developers or the implementers like us can come on board and plan accordingly. Meanwhile, financiers can also come on board and better place their investment where it is needed the most – be it on grid expansion or actual energy generation projects – to ensure that we meet growth and demand, and most importantly, that the energy generated can actually be integrated into and evacuated by the national grid.
Given recent disruptions to South Africa’s power supply, to what extent will solar power help ensure energy availability in Namibia and reduce reliance on imports?
To a greater extent, solar power will help in ensuring availability. The fact that it’s quick to implement already has the benefit of preventing future disruptions in the energy supply or in the networks. It still has a big role to play in the sense that it’s available and it’s quick – we just need to enhance it. Enhancing – that is, expanding and integrating available solar power with capacity firming systems – will ensure that we have more available energy, reducing the amount of energy we now import from neighboring countries like South Africa, Zambia and Zimbabwe.
Energy Capital & Power is a strategic partner of the Namibia International Energy Conference (NIEC) – taking place in Windhoek on April 23-25, 2024. The 6th annual conference unites industry leaders, business executives and policymakers to engage in dialogue, exchange ideas, create new partnerships and identify strategies to foster a prosperous energy industry in Namibia and beyond. For more information, please visit https://www.nieconference.com/
