NamWater pauses renewable energy strategy due to regulatory compliance issues

Acting chief of strategy and corporate affairs Irwin Haihambo stated that early engagement with the regulator revealed gaps in their initial approach, leading to the pause. The utility is now in discussions with the ECB to align on the correct legal and procedural path forward. This delay comes as electricity costs constitute up to 40% of NamWater's annual operating expenses.

The company is exploring options to generate its own energy to reduce reliance on external power supply and is targeting savings of 30% to 40%. The broader strategy involves integrating solar power, with procurement processes already initiated for independent power producers to develop solar photovoltaic plants. In 2021, energy costs for water treatment and pumping exceeded N$363 million, and current electricity demand is estimated at 18 megawatts per hour, expected to double with new infrastructure.

NamWater's strategic plan for 2022-2034 aims for solar photovoltaic systems to supply 30% to 70% of its energy needs across selected schemes, seeking to lower operating costs and enhance energy security. The pause highlights the regulatory challenges faced by state-owned enterprises pursuing independent energy sources amid rising power costs.