Chamwe Kaira
The implementation of Namibia’s National Energy Compact under the Mission 300 initiative is expected to cost about US$1.76 billion (about N$33 billion), with around US$411 million (about N$7.7 billion) expected from private sector investment.
The programme aims to expand electricity access and increase renewable energy generation.
This is according to a report by the African Development Bank.
The government is developing a National Electrification Policy to expand electricity access in rural and peri-urban areas.
The National Energy Compact forms part of broader plans to increase access to electricity and improve energy security.
Under the strategy, Namibia plans to expand generation capacity and improve transmission and distribution networks.
“Investments are expected to prioritise large-scale renewable energy projects and upgrades to national and regional electricity infrastructure. This includes strengthening cross-border transmission links with Angola and South Africa to facilitate greater electricity trade through the Southern African Power Pool,” the bank said.
The programme will also focus on improving institutional capacity in the energy sector.
It will support a gradual move toward cost-reflective electricity tariffs to improve financial sustainability and attract investment.
Electricity access in the Khomas Region is expected to increase from 415,885 people in 2024 to about 615,885 by 2030.
Namibia is also working to improve electricity supply as demand continues to rise.
The country’s electricity access rate increased from 49% in 2019 to 59.5% in 2025.
The increase is linked to urbanisation and the growth of peri-urban areas.
Despite this progress, Namibia still relies on imported electricity.
The country produces about 35% of its electricity locally.
About 65% is imported through the Southern African Power Pool, with around 40% coming from South Africa’s utility Eskom.
Namibia’s installed electricity generation capacity stood at 695 megawatts in 2024.
Peak demand reached 637 megawatts in 2023 and is expected to increase to about 1,243 megawatts by 2040.
A large share of local electricity generation comes from the Ruacana Hydro Power Station.
The plant produces about half of Namibia’s domestic electricity.
However, its output depends on rainfall and varies between 31% and 50%.
“Combined with power shortages across the region, Namibia’s dependence on imported electricity has heightened concerns about long-term energy security,” the bank said.
