Harnessing Solar Power for Rural Electrification

Transcription

1 Renewable Energy Harnessing Solar Power for Rural Electrification

2 Sun powers energy shift Namibia overcomes barriers to solar energy deployment In response to rising fuel prices, low grid connectivity in rural areas, heavy dependence on energy imports (mainly from South Africa and Zimbabwe) and climbing greenhouse gas emissions, the Namibian Ministry of Mines and Energy launched a program to remove barriers to renewable energy. Initiated in 2004, the Namibian Renewable Energy Program was implemented in collaboration with the UN Development Program and the Global Environment Facility. Enhanced energy access is a top priority in Namibia, where only about 15 percent of the rural population and 30 percent of the entire population had access to electricity in That spurred research into new sources of electricity fueled by coal, diesel, natural gas, wind, hydro and nuclear power. As access to energy grows, the choice of electricity supply could lead to increases in greenhouse gas emissions. According to Namibia s most recent report to the UN Framework Convention on Climate Change, in 2000, the energy sector accounted for almost 2.2 million metric tons of carbon dioxide (CO 2 ) equivalent, or 24 percent of the country s total emissions. 2 energy FOR RURAL COMMUNITIEs Because Namibia has no easily exploitable fossil fuel reserves, the Namibian Renewable Energy Program aims to increase access to affordable domestic renewable energy while achieving climate goals and sustainable development objectives. The program works to provide rural communities with access to offgrid solar energy technologies (for lighting, radio and television, water pumping, small electric tools and refrigeration) and reduce the country s dependence on imported fuels by promoting solar water heating (for households, institutions and businesses) and solar water pumping for agriculture. 3 It addresses various barriers to solar energy implementation by building local capacity, improving public awareness and acceptance of renewable technologies, and overcoming financial and technical hurdles. The program contributes to Namibia s National Policy on Climate Change by promoting low-carbon development and sustainable energy while improving livelihoods and increasing incomes for rural people. Technical aid, policies and public awareness The program was implemented in two phases. The first phase involved direct technical assistance to the government, nonprofit organizations and other groups to reduce and remove barriers related to capacity, policies and institutions, technical 2

3 expertise, financing and public awareness. The second phase promoted the delivery of solar energy services. The Ministry of Mines and Energy s interim goals were to: Build capacity in public and private sectors and among nonprofit organizations. Implement new policies, laws, regulations and actions to promote renewable energy. Increase public awareness and acceptance of renewable energy. Ensure that appropriate financing and product-delivery schemes were established and expanded. Promote learning, evaluation and adaptive management. 4 These measures helped Namibia build local capacity to encourage the development of solar energy during the first phase and make solar energy services available during the second phase. The Global Environment Facility provided USD 2.6 million in funding for each phase. The first phase began in 2004 and the second in In the first phase of the program, the Ministry of Mines and Energy set up a Renewable Energy Division in its Energy Directorate and established a Renewable Energy and Energy Efficiency Institute to handle matters related to solar energy technologies, such as establishing small- and medium-size businesses to provide solar energy products and services, and promoting policy dialogue and energy research. The government also issued two Cabinet directives to encourage use of solar energy technologies and ensure a high level of direct program oversight. The Renewable Energy Program played a key role in creating a regulatory framework for renewable energy and energy efficiency in electricity generation. 6 Medium Solar Home System with Street Light The second phase continued to address barriers related to capacity, awareness and policy, but particularly emphasized overcoming financial obstacles, which was crucial for the program s success. Because the government had focused in the past on other energy priorities, such as expanding the conventional grid, its funding for solar energy had been limited, and private investors had not considered solar energy attractive. 7 A cost-benefit analysis demonstrating the advantages of solar energy over fossil fuels facilitated the marketing of solar technologies in rural and urban areas. To overcome high initial costs and provide additional access to capital at low rates, the Ministry of Mines and Energy took over and expanded an existing solar revolving fund that had been administered by private fund managers. 8 The fund allows end users mainly households to purchase solar energy systems with revolving credit. 3

4 According to government officials, more than 1,500 loans totaling more than USD 1.2 million were distributed through the fund, mainly for home solar systems, solar water pumping and solar water heating systems. 9 The Ministry of Mines and Energy also created financing schemes for customers and solar entrepreneurs through semicommercial financing institutions. Fuel savings, CO 2 emission reductions and energy access Within its first year, the Namibian Renewable Energy Plan resulted in a number of new policy and regulatory measures to encourage renewable energy use, mainly the Solar Water Heater Cabinet Directive, the Off-Grid Energy Master Plan and the National Regulatory Framework on Energy. In 2008, the Ministry of Mines and Energy established a National Technical Committee on Renewable Energy and issued a Renewable Energy Strategic Action Plan. In 2009, the government set up a fund to support off-grid energy and established the ministry s Renewable Energy Division. The program helped establish solar energy technology plans in that ministry and at least three others: Works and Transport; Agriculture Water and Forestry; and Environment and Tourism. 10 The Namibian Renewable Energy Program served as a catalyst for commercial solar energy services, especially in rural areas, helping to foster solar energy deployment. In 2009, 3,580 new solar systems had been sold, a tenfold increase from the baseline year. They included 1,900 home solar systems, 1,300 solar water heaters, and 380 photovoltaic water pumps. The new solar systems cut kerosene use by about 50 percent and reduced annual diesel fuel consumption by 21,320 liters. 11 The Namibian Renewable Energy Program has increased access to energy, providing more than 8,330 households with electricity since the program began. 12 The Namibian Renewable Energy Program contributes to Namibia s National Policy on Climate Change by reducing CO 2 emissions by approximately 233,700 metric tons over 15 years. 13 If solar energy sales continue to grow after the end of the current GEF project to serve other areas of the country that currently lack electricity, the UN Development Program estimates that CO 2 emissions could be reduced by 2.1 million metric tons. 14 Going forward, to improve these quantitative estimates and facilitate verification, the UN Development Program suggested using the approved Clean Development Mechanism baseline and monitoring methodologies and transparent emission factors. 15 Additionally, future iterations of the Program could leverage funds more effectively through carbon financing. 16 4

5 References Deenapanray, Prakash (Sanju). Terminal Evaluation Report (Final version) MME/UNDP/GEF Barrier Removal to Namibian Renewable Energy Programme (NAMREP) Phase II. Ecological Living In Action Ltd., January UNDP Project Document. PIMS 3062 NAM 10(Namibia) (Proposal number) (Project number) CC FSP: NAMREP II Barrier Removal to Namibian Renewable Energy Programme (NAMREP) Phase II. May Endnotes 1 AllAfrica Global Media. Namibia: Solar Revolving Fund Launched. Indexed from the Namibia Economist, April 21, Web. November < stories/ html> 2 Ministry of Environment and Tourism, Republic of Namibia. July Namibia Second National Communication to the United Nations Framework Convention on Climate Change. Web. November < natc/namnc1.pdf> 3 Deenapanray, Prakash (Sanju). January Terminal Evaluation Report (Final version) MME/UNDP/GEF Barrier Removal to Namibian Renewable Energy Programme (NAMREP) Phase II. Ecological Living In Action Ltd Ministry of Mines and Energy, Energy Directorate, Republic of Namibia. January Barrier Removal to Renewable Energy Programme: Development of a Regulatory Framework for Renewable Energy and Energy Efficiency With the Electricity Sector Final Report. Web. November < 7 United Nations Development Program. May Project Document: Barrier Removal to Namibian Renewable Energy Programme (NAMREP) Phase II. Web. October < Namibia%20-%20Barrier%20Removal-NAMREP-Ph2.pdf> 8 9 AllAfrica Global Media, 2011, op cit Prasad, Gisela, et al. Energy, Water and Climate Change in Southern Africa. Energy Research Centre. University of Cape Town. Web. September < EN/Programs/Agriculture_and_the_Environment/Climate_ Change_and_Water/Documents/ Energy-explorationreport-Southern-Africa.pdf> 13 United Nations Development Program, 2007, op cit Photo Credit Medium Solar Home System with Street Light Ministry of Mines and Energy, Energy Directorate, Republic of Namibia. January Barrier Removal to Renewable Energy Programme: Development of a Regulatory Framework for Renewable Energy and Energy Efficiency With the Electricity Sector Final Report. Web. November < 750 First Street, NE, Suite 940 Washington, DC p CCAP CENTER FOR CLEAN AIR POLICY5