Renthia Kaimbi
Electricity costs take up about 35% of the total revenue of Namibia’s green scheme projects.
The executive director of the Ministry of Agriculture, Fisheries, Water and Land Reform, Ndiyakupi Nghituwamata, revealed this during a national workshop on green schemes in Rundu on Monday.
She said each project spends close to N$1 million per month on electricity.
“Each green scheme project spends close to N$1 million per month on electricity alone, representing roughly 35% of its total revenue, a burden that severely impacts profitability and long-term operational viability,” she said.
Nghituwamata said high power tariffs have become a major challenge, despite the ministry investing in energy efficiency measures such as variable speed drives, power factor correction systems, and high-efficiency motors.
These efforts have not been enough to reduce the financial strain, she stressed.
The government owns 11 green schemes on about 4 100 hectares across the country, with four leased to the private sector.
These include Hardap, Etunda, Musese, Orange River, Sikondo, Vhungu-Vhungu, Ndonga Linena, Mashare, Shadikongoro, Kalimbeza, and Shitemo.
A cabinet appointed team had earlier engaged NamPower and the Ministry of Industries, Mines and Energy to find solutions, but Nghituwamata said those talks did not bear any tangible outcomes.
She described the Rundu workshop as a vital platform to craft practical solutions that would sustain food production.
“Our discussion today is not merely about reducing energy costs but about securing the future of food production in Namibia,” she said.
Nghituwamata said electricity costs affect productivity and influence key farming decisions such as irrigation schedules and crop planning.
She proposed the introduction of special agricultural tariffs, public-private partnerships in renewable energy, and solar hybrid systems with energy storage to reduce costs.
“We must also explore innovative energy management approaches, including the peak shaving method, which allows us to reduce electricity expenses by managing and optimising energy use during high-tariff periods,” she said.
Nghituwamata said the issue goes beyond agriculture and requires a national effort.
Representing the Ministry of Industries, Mines and Energy, Abraham Hangula delivered a speech on behalf of executive director Moses Pakote, who emphasised that food security and reliable electricity should advance together as mutually reinforcing goals essential for citizens’ well-being and economic strength.
Pakote said talks between the energy and agricultural sectors have been ongoing since 2023 after farmers raised concerns about rising operational costs.
“Farmers reached out to us, we listened, and we worked together to find solutions. In some months, maximum demand charges form the largest part of the electricity bill. These charges directly affect planting decisions, irrigation schedules, and ultimately the affordability of food for ordinary Namibians,” he said.
He explained that while the ECB regulates tariffs to balance costs and affordability, the process is complex.
“If tariffs are too low, our distributors cannot maintain networks or respond to faults. If they are too high, food production and business activity suffer. The balance must therefore be maintained carefully,” he said.
The Cabinet has directed the ministry to review electricity tariffs for green schemes to improve agricultural output and food security.
In response, the Ministry of Mines and Energy, ECB, NamPower, Nored and the Ministry of Agriculture have been jointly assessing tariffs and operational conditions since last year.
Pakote said consultations revealed three key lessons.
“First, the challenge is not only about the tariff level but also how electricity is used. Smarter scheduling and better operational management can make a major difference. Second, equipment and maintenance matter. When pumps have soft starters or variable speed drives, and systems are properly maintained, significant savings can be achieved. Third, self-generation through solar energy can provide relief if it is properly managed,” he said.
He noted that while the government has provided electricity subsidies since 2023 to assist consumers, such assistance cannot continue indefinitely.
“Funds used for subsidies should, in the long run, be directed toward investment in generation, network maintenance and modernisation,” Pakote said.
He urged for careful, data-driven planning. “Namibia cannot afford wasteful or sunk investments. We must be deliberate, careful, and data-driven in identifying what works and what does not,” he said.
The workshop brought together officials from the ECB, NamPower, Nored and farmers to explore tariff models that balance energy affordability with food security.
ECB chief executive officer Robert Kahimise said the workshop’s goal was to find sustainable tariff solutions to ensure electricity costs do not burden food production.
