Harnessing Namibia’s high-quality renewable resources can accelerate the country’s socioeconomic development

With robust policy support in place, renewable energy can become a cornerstone of Namibia's sustainable development and economic growth, according to a new report from the International Energy Agency (IEA) published today.

The report, Renewable Energy Opportunities for Namibia, was carried out in collaboration with Namibia's Ministry of Mines and Energy. It is the Agency's first analysis focused exclusively on the country.

The launch event, which took place at African Energy Week 2024 in Cape Town, South Africa, featured remarks from IEA Deputy Executive Director Mary Burce Warlick and Namibia's Minister of Mines and Energy Tom Alweendo. Rita Madeira, the IEA's Africa Programme Manager, presented key takeaways from the analysis.

"Namibia's world-class renewable resources offer a remarkable opportunity for sustainable growth and socioeconomic advancement," said IEA Deputy Executive Director Mary Burce Warlick."This new report underlines the importance of strategic investments and collaborative efforts to turn this potential into widespread benefits for Namibians."

"I am very pleased with the collaboration with the IEA, which has culminated in the report we launched today," said Namibia's Minister of Mines and Energy Tom Alweendo."Our country is home to extraordinary resources - and it has been invaluable to assess these opportunities together with the IEA and consider how they align with our national priorities and vision."

Namibia offers exceptional solar and wind energy potential, with significant year-round sunlight and substantial wind speeds in key areas. This, combined with low seasonal variability and population density, positions Namibia as an ideal location for large-scale renewable energy projects.

According to the new report, accelerating the deployment of these renewable energy sources could offer transformative benefits for Namibia's power sector - reducing the country's reliance on electricity imports, improving energy security and lowering costs for consumers. Additionally, expanding renewables can support universal electricity access, particularly in remote areas, via off-grid solutions.

Renewables can also hold significant advantages for Namibia's mining industry, which currently accounts for 14% of the country's GDP and 21% of electricity consumption. Using renewables as an energy source for mining would reduce energy costs for the industry and related emissions, enhancing the sector's competitiveness in global markets that favour sustainable products.

According to the report, Namibia is also well-positioned to produce renewable hydrogen and its derivatives and establish a new low-emission industry in the region. If designed and managed well, large-scale renewable hydrogen projects, backed by foreign offtake agreements, can attract significant investment and support the development of a skilled workforce with expertise in the sector.

Achieving Namibia's ambitions will depend on the interplay of three critical enablers: mobilising affordable financing to reduce the cost of clean energy investment; building long-term partnerships with importing countries to develop new markets for low-emission products; and implementing transparent and predictable policy frameworks. The new report explores how Namibia can weave these elements together, paving the way for the country to unlock its vast renewable energy potential and realise its sustainable development ambitions.