Electric dreams for 2030

Baynes gets billions, nuclear gets policies
Ministry of Industries, Mines and Energy’s strategic plan announced.
Augetto Graig

Electricity access for 70% of the population, from an installed generation capacity of 1153 MW, the creation of 30 000 green jobs, and three-quarters completion of the Baynes Hydroelectric Project are among the priorities for which the government intends to invest billions by 2030.

The Ministry of Industries, Mines and Energy will increase domestic generation capacity through the development of utility-scale solar photovoltaic (PV), wind, and biomass projects, as well as by advancing the Baynes Hydropower Project. The ministry will also fast-track nuclear energy development as part of its strategy to diversify the energy mix.

By supporting Independent Power Producers (IPPs), promoting public-private partnerships, and prioritising enabling infrastructure such as grid integration and energy storage, these initiatives aim to reduce import dependence, enhance grid reliability, and support green industrialisation.

These ambitions are outlined in the ministerial strategic plan for the financial years 2025/26 to 2029/30.

In the plan, the Directorate of Energy (DE) is mandated to ensure an adequate and affordable energy supply sustainably. Meanwhile, the Directorate of Energy Funds (DEF) administers the National Energy Fund (NEF), established in 1990, which receives monies from the petroleum equalisation levy and from electricity levies collected by NamPower. The directorate also administers the Solar Revolving Fund (SRF), a credit facility established in 1996 to stimulate demand for renewable energy technologies.

The ministry will accelerate electrification in rural and peri-urban areas through grid extension, off-grid and mini-grid renewable energy solutions, and infrastructure upgrades. Targeted beneficiaries include informal settlements, schools and health facilities. Implementation will be coordinated with Regional Electricity Distributors (REDs), local authorities, and development partners to improve energy access, support productive use, and promote inclusive socio-economic development.


Achievements to date

Since 2016, Namibian-installed generation capacity has increased from a baseline of 484 MW to 734 MW. “This expansion was crucial for reducing reliance on electricity imports,” according to the plan. Additionally, the national electrification rate has risen from 34% to 59.3%. The ministry has successfully electrified 33 schools, 4,606 peri-urban households, and provided electricity access to 596 rural households by the end of 2025.

The NEF and SRF financial policies and procedures were developed and approved. SRF regulations have been submitted to the Ministry of Justice (MoJ), and a memorandum of understanding between the ministry and the tax authority, NAMRA, was developed.

The target of 30% local ownership in the energy sector, as a requirement under the power purchase agreements for Renewable Energy Feed-in Tariff (REFiT) IPP projects, was also met, exceeding the original 20% target.

The share of electricity generated from renewable technologies rose from 33% to 60%, surpassing the target of 55%. A total of 121 MW of renewable energy capacity was added between 2016/17 and 2023/24 through projects developed by REDs and IPPs. Between 2023/24 and 2024/25, 1 261 of 1 650 off-grid households were electrified.

The ministry has developed seven new policies, including the overarching National Energy Policy, a dedicated Renewable Energy Policy, an Independent Power Producer (IPP) Policy, an internal Acceptable Use Policy for ICT resources, a Disaster Recovery Policy, a comprehensive Security Policy, and a Bring Your Own Device (BYOD) Policy. The Electrification Policy is at the finalisation stage, awaiting Cabinet approval, while the Electricity Bill has been amended and awaits MoJ clearance.


Billions to spend

By 2030, the ministry plans to spend N$1 billion on national energy infrastructure, such as fuel depots, substations, and transmission lines, through the DEF. Namibia aims to diversify its renewable energy sources, creating 30 000 green jobs, according to the ministerial plan. By 2030, Namibia seeks a sustainable mix of locally generated energy, increasing installed generation capacity from 734 MW to 1153 MW, supported by a DE operational budget of N$1 billion and a development budget of N$1 billion.

Annual generation capacity increase targets are as follows: 25.8 MW in 2025/26, 144 MW in 2026/27, 90 MW in 2027/28, 40 MW in 2028/29, and 120 MW in 2029/30.

By 2030, the ministry aims for 75% completion of the Baynes Hydropower Project. Construction of the Baynes plant, including access roads, main and regulating dams with generation facilities, and transmission lines, will benefit from an operational budget of N$360 million and a development budget of N$17.01 billion over the planned period.

Households financed for solar home systems, water pumps, and solar water heaters are expected to increase by 300 per year for five years, bringing the total to 6 200, supported by almost N$102.5 million from the DEF.

The ministry plans that, by 2030, official nuclear energy governance documents will be developed, finalised, and formally approved by the relevant national authorities, with an operational budget of N$25 million and a development budget of N$40 million allocated by the DE.

The proportion of the population with access to electricity is projected to grow from 59.3% to 63% in 2026/27, to 65% in 2027/28, 67% in 2028/29, and 70% in 2029/30.

The national electrification programme, targeting peri-urban and rural households, schools, and health facilities, will receive an operational budget of N$4.5 million and a development budget of almost N$6.5 billion through the DE.