Electricity market design and renewable energy auctions – Namibia country study
Five years ago, few people would have considered Namibia as a prime investment destination for private power developers. While the country exhibited many of the macro-economic fundamentals needed to attract foreign investment, its power sector had no history of meaningful private participation. But the current situation is very different. By 2018, Namibia hosted the third highest number of independent power projects in sub-Saharan Africa. It is also the country in the region with the cheapest, local currency-based utility-scale solar photovoltaic (PV) project – with no sovereign support.
This report by Power Futures Lab analyses the drivers behind this rapid market development, focusing in particular on the design and implementation of the competitive procurement programme that delivered the Hardap solar PV project.