Staff Writer
Businesses in Namibia are turning to alternative energy solutions as electricity tariffs rise and supply reliability remains a concern.
Standard Bank Group market development lead and asset finance specialist for renewable energy and healthcare, Oliver Jugadasen, said the country’s energy environment is undergoing a structural shift.
“The energy market is shifting toward decentralised generation, driven by rising utility costs, reliability concerns, and the global move toward cleaner electricity. For Namibia, this is not only an environmental conversation but an economic one,” he said.
Jugadasen said falling solar panel prices and advances in technology have improved the financial case for distributed energy. He stressed that businesses must first understand their energy needs before installing systems.
“For customers, the objective is not simply installing solar equipment. It starts with understanding energy demand. Oversizing installations increases capital costs unnecessarily, while right-sizing ensures optimal savings and predictable cash flow,” he said.
He said properly structured financing can deliver savings from the start.
“A financed system that produces electricity at a lower effective tariff than grid supply allows a customer to reduce operating expenses from the first year,” Jugadasen said.
He noted that battery storage remains a cost factor but said its value becomes clear when compared to diesel generation and business losses caused by power cuts.
“When compared to the operational cost of diesel generators and the financial impact of downtime, storage becomes a resilience investment,” he said.
Jugadasen outlined financing options available to clients. These include on-balance-sheet asset finance for customer-owned systems with repayment terms of up to ten years and project financing models such as power purchase agreements.
“The bank finances the project following due diligence on contract stability, financial forecasts, and operational risk. This model enables large-scale generation without requiring the end user to carry capital expenditure on their balance sheet,” he said.
Standard Bank Namibia recently hosted a breakfast connection session with business clients, engineering partners, renewable energy providers, municipal representatives and other industry stakeholders.
The session introduced the bank’s vehicle and asset finance solar financing offering, aimed at supporting businesses seeking stable and reliable energy solutions.
Jugadasen said as Namibia diversifies its energy mix, the bank will focus on projects that are financially viable and deliver economic value for businesses and the broader economy.
Standard Bank’s head of business and commercial banking, Hellen Amupolo, said renewable energy has moved from being a long-term goal to an immediate priority for Namibian businesses.
