SWAKOPMUND — In a significant move aimed at addressing the persistent electricity supply shortfall, Mines and Energy Minister Tom Alweendo has advocated for a strategic overhaul of the power sector, emphasizing the necessity for improved performance and capacity from Independent Power Producers (IPPs). This call to action was a central theme during the Erongo RED stakeholders’ summit that took place in Swakopmund on Friday.

According to NAMPA, the current structure of electricity companies is insufficient to meet the growing energy demands. Alweendo pointed out that the existence of a deficit cannot be attributed to a lack of demand but rather to an organizational inefficiency, which suggests a potential need for more IPPs in the energy market. The intention behind encouraging IPPs, he mentioned, is to shift the investment burden from the public to the private sector, promoting sustainable investment practices.

The supply shortage, as Alweendo outlined, raises fundamental questions about the operational models of current electricity providers and indicates a pressing need for restructuring within the industry. He proposed that IPPs utilize gatherings like the summit to explore innovative institutional arrangements that could potentially balance the electricity demand and supply scales.

The summit convened under the decisive theme ‘Lighting up the last house by 2030 – refocusing on peri-urban and rural electrification,’ setting a clear goal for the future of Namibia’s energy landscape. Zoe Nambahu, the Erongo RED Chairperson, acknowledged the board’s efforts to tackle the electrification challenges in peri-urban and urban settings, along with addressing concerns regarding municipality final charges.

Erongo Governor, Neville Andre Itope, praised the strides made by Erongo RED, particularly in electrifying communities through Corporate Social Responsibility initiatives and savings. Despite these advancements, Itope underscored the need for continued and increased efforts to achieve full electrification in underserved communities.

Highlighting the impact of these initiatives, Erongo RED has connected 1,174 houses in peri-urban areas and 1,129 houses in rural villages over the past decade, investing substantial funds into these projects, demonstrating the company’s commitment to the minister’s electrification goals.