[{"bbox": [100, 154, 275, 178], "category": "Section-header", "text": "## Lessons Learnt:"}, {"bbox": [100, 195, 1134, 248], "category": "Text", "text": "The Government of Namibia and NamPower have been quite successful in recent years in launching a series of initiatives aimed at increasing the share of renewable energy in the energy mix."}, {"bbox": [100, 259, 1134, 339], "category": "Text", "text": "In 2015, the MME, ECB and NamPower launched the Namibian Renewable Energy Feed-In Tariff (REFIT) program which led to the construction of 13 solar PV plants and one wind power plant with a cumulative capacity of 70 MW (5 MW each)."}, {"bbox": [100, 352, 1134, 511], "category": "Text", "text": "More recently, the government decided to shift approach for the development of large solar projects, which are now procured from IPPs via competitive auctions instead of feed-in tariffs. Although the MME made a determination for 220 new generation projects in 2017, only few projects have reached the closure stage since then (20MW in production). Delays are attributed to several reasons such as the Procurement process, the COVID-19 pandemic, land lease and environmental clearance process among others. These are areas which need to be analysed and improved."}, {"bbox": [100, 523, 1134, 683], "category": "Text", "text": "Nonetheless, due to the fiscal circumstances of GRN and of NamPower, it appears that GRN sustainable development, RE generation, and energy security goals can be better achieved through an aggressive multi-year IPP program. This does not exclude also to implement new generation projects through an EPC (Engineering Procurement and Construction) model driven by NamPower. The EU, TEI and other donors will support GRN in the development and administration of the program, in order to identify bottlenecks in procurement and to de-risk the investments for the private sector."}, {"bbox": [92, 695, 1128, 1066], "category": "Text", "text": "The Government of Namibia also adopted a new market structure, the Modified Single Buyer (MSB) Model, which allows certain electricity consumers and independent power producers to transact with each other directly within a limit of 30% of electricity consumed and sell electricity to the SAPP market. While there are no previous GH2 programmes to draw lessons from, the EU has acted as a regulatory enabler for private investments in energy and other projects and learned that a clear regulatory framework for GH2 should be developed and adopted to avoid the perceived risks that could discourage private sector from participation. These regulatory frameworks include, among others: clear technical definitions of the types of project to be supported for hydrogen and derivatives production and storage systems; definition of taxation and import duties and other levies to the government; resolution of environmental issues in the Southern corridor; definition of roles and responsibilities of each entity (state, parastatal, and private) involved in the development of GH2 projects; authorization procedures for the various types of GH2 plants; possibility for the plants to sell firm energy to the grid; support mechanisms for fostering the construction and the operation of renewable energy projects; training for construction workers and facility operators."}, {"bbox": [86, 1099, 399, 1129], "category": "Section-header", "text": "## 3.5 The Intervention Logic"}, {"bbox": [97, 1145, 1079, 1252], "category": "Text", "text": "The underlying intervention logic for this action is that by increasing the capacity of the MME and IAO, by streamlining the regulatory framework, by providing assistance to project development and finance and by developing better skilled workforce, it will contribute to scaling up renewable energy solutions and the development of the nascent hydrogen economy."}, {"bbox": [97, 1252, 1105, 1304], "category": "Text", "text": "The action will work along the three main components 1) sustainable energy generation and access, 2) support development of GH2 and synthetic fuels value chain, and 3) skills development."}, {"bbox": [97, 1304, 1128, 1488], "category": "Text", "text": "These results will be achieved by providing support through technical assistance and studies to the Ministry of Mines and Energy, the GH2 Implementation Authority Office, and to TVET institutions in the following areas: support to energy planning and vRE integration, implementation of an IPP programme, regulatory reforms, investment promotion and business facilitation, common use infrastructure development, inclusive capacity and skills enhancement, project preparation and finance. The action will also ensure that horizontal policies (i.e. gender equality, human rights and disability mainstreaming) are taken into consideration while implementing the different activities."}, {"bbox": [97, 1489, 1128, 1570], "category": "Text", "text": "The scaling up of renewable energy represents an unparalleled opportunity for Namibia to address the challenges of electricity access and energy security while helping the country achieve its climate change goals and create jobs domestically."}, {"bbox": [1027, 1681, 1143, 1706], "category": "Page-footer", "text": "Page 15 of 26"}]