**3. Electrification in Namibia**

The proportion of the Namibian population with access to electricity grew from 43.7% in 2010 to 57.4% in 2019 [4]. This might be surprising, as Namibia is frequently perceived as developed as South Africa when it comes to the electrification rate. Namibia, however, is in a somewhat more difficult situation, as being the second least densely populated country in the world [7]. The population is widely scattered, which makes it almost impossible to connect all villages to the main grid. Especially remote areas are unable to use electricity, which hinders the development. Thus, off-grid systems represent a great opportunity to enhance rural electrification. In particular, mini-grids based on solar energy provide great value in view of the potential of solar energy in Namibia, as the country exhibits the second highest level of solar irradiation in the world [8]. In addition, Namibia is today heavily dependent on fossil fuel imports from neighboring countries such as South Africa [9, 10]. Encouraging current efforts to increase the penetration of solar energy supply is therefore an essential step not only toward greater energy independence, but also toward lower national electricity prices and an overall reduction in CO2 emissions.

In the Vision 2030, issued in 2004, the Namibian government has already stated to pursue a sustainable energy policy in order to accelerate urban and rural development [11]. The same was declared in the Strategic Plan 2017/2018–2021/2022 devised by the Ministry of Mines and Energy (MME) [12]. This indeed appears to be a valid strategy, considering the above-mentioned predicament.

#### **3.1 The electricity sector in Namibia**

The Electricity Supply Industry in Namibia has started a transformation process in the 2000s. Prior to that, the state-owned national power utility 'NamPower' had a quasi-monopoly in the market, being responsible for the generation, transmission and distribution of electricity. While NamPower was the only entity authorized to supply electricity to farms and mines, Local Authorities (LA) and Regional Councils (RC) were exclusively liable for providing electricity to residents and businesses. [7] Starting in 2002, regional electricity distributors (REDs) have been conquering the market, resulting in progressive liberalization. This development also created a market for private Independent Power Producers (IPPs). However, sales to end customers continue to be handled exclusively by NamPower, the REDs and municipal utilities [7].

In 2000, the Electricity Control Board (ECB) took over the role of market regulator, which is defined in the Electricity Act of 2007 (formerly: Electricity Act of 2000). In this function, the ECB issues regulations and technical standards for the connection of renewable energy (RE) plants to the grid, while the Ministry of Mines and Energy (MME) is in charge of the development of the industry itself and ultimately acts as a policy maker [12].
