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Electrification and Development of Namibia
The electrification of Namibia is an urgent issue that determines its economic development. Scientists analyze the processes of electricity supply from various angles, including dependence on oil and biofuels, and compare the alternatives of ecologically friendly sustainable energy solutions. Hoeck et al. (2021) say that in Namibia and sub-Saharan Africa, most of the population is not connected to the grid, noting a slowdown in connection growth for this region. Namibias problems feature high electricity prices incomparable to the standard of living, causing a shortage of demand.
Imported coal-fired electricity is still the main energy source, and this situation should be changed towards a more environmentally friendly development. Hoeck et al. (2021) emphasize, Namibia has some of the highest levels of solar radiation in the world, making it possible to produce large amounts of solar electricity at very low cost and to electrify rural areas with off-grid solar systems . Therefore, scientists discuss the potential of constructing solar power plants throughout the country and consider this an optimal solution. The purpose of the study by Hoeck et al. (2021) was to depict the problems of autonomous electrification. Equally important, scientists criticize the current off-grid approach to electricity generation popular among the local population. The scholars are also unhappy with the unilateral autonomous legislation and the lack of public information. The gaps in this document are the minimum amount of quantitative data and the lack of illumination of more particular aspects concerning autonomous electrification.
Today, there are many technologies for obtaining electricity from alternative sources. Hoffmann and Dall (2018) describe the thermodynamic model of a CSP plant used to combine power generation and purified drinking water production. The project was developed for the city of Arandis by NamPower and is unique in that it generates water along with electricity. The location of Arandis at an altitude of 580 m above sea level allows the use of cogeneration plants here. It is noteworthy that the plant capacity will satisfy Arandis demand for water and electricity. The presented article offers a comprehensive solution to low levels of electricity supply. The research by these authors focuses on a clear and correct justification for the integration of energy and water production for Namibia and Arandis. The key disadvantages of the study include the lack of information about various receivers and devices.
The problems related to implementing strategic initiatives are common in most developing countries in Africa. The actions of local governments and political elites are not sufficiently controlled by laws and civil society. Politicians continue to violate the rights of the population, satisfying their personal economic needs through corrupt schemes. Imam et al. (2019) evaluated sectoral reforms undertaken in sub-Saharan Africa to reduce corruption from 2002 to 2013. The region includes 47 countries, and here the efficiency of the energy sector is reduced due to corrupt politicians and officials who block access to the free electricity market, investment in projects, and, as a result, access to electricity and income from its sale to the population. Scientists see a way out in independent regulation and privatization practices. This conclusion resonates with the suggestion presented to develop the energy sector since its potential is directly related to the countrys economic and industrial potential. In the paper by Imam et al. (2019), the researchers focused particular attention on establishing data on the effectiveness of reforms in the electric power sector. The major gap in the study is the lack of proposals to eradicate corruption in the industry and improve reforms.
Capital management in the construction and distribution of electricity is an issue that should be addressed in terms of the electrification strategy in Namibia. Munyoro and Shaningwa (2019) studied capital management practices aimed to improve liquidity and profitability during electricity distribution in the country. Researchers focused on the problem of increased debt and financial stress. The gap lies in the lack of in-depth quantitative research that could demonstrate the proposals in terms of numerical values. The authors proposed to apply optimal money management methods to overcome this problem, such as profit maximization. The scientists mentioned the importance of attracting investment in the capital-intensive electricity distribution sector. Proper capital management will allow enterprises to invest profits in capital investments to eliminate the need for debt financing (Munyoro & Shaningwa, 2019). The information presented in the article provides an outlook on the perspectives of economic management in the electricity generation and distribution sector in Namibia. Proper management of working capital will reduce the sectors dependence on corrupt politicians and subsequently lead to the mitigation of electricity shortages and the revival of the economy.
Electricity prices in Sub-Saharan Africa are significantly higher than in other regions. Streatfield (2018) says that cross-border trading between the SSA countries solves the problem, but only partly. Investments in domestic infrastructure require capital management because of the system losses such as excessively low tariffs that do not cover the utility costs. Together, these problems lead to a low level of electricity supply to the population and the stagnation of the economic sector of electricity production and distribution. The scientist points out the low level of electricity generation in the region and suggests a temporary decision in electricity trade between SSA countries (Streatfield, 2018). Nevertheless, there is such a gap in the work as studying the actual degree of influence and prevalence of electricity supply in specific territories. Moreover, this article provides specific arguments in favor of introducing alternative sources of energy. Trade between countries is a temporary solution allowing the economies to maintain low consumption levels. Growth in electricity supply requires the construction of electricity generation plants and political will to reduce barriers to attracting investment.
Namibia has not only off-grid electricity generation practices but also uses hydroelectric power for centralized distribution. Erinosho et al. (2021) note that the hydroelectric power plant is the main source of electricity for Namibia, but due to its aging, demand exceeds supply. The authors propose the introduction of inexhaustible alternative sources such as solar energy, which is especially relevant for Namibia, given the amount of solar heat released. Scientists consider the advantages and disadvantages of building solar power plants. Project implementation challenges include the high initial cost of solar technology, expensive off-grid solar power plants, and lack of human capital, although these challenges can be overcome. The article closely echoes the papers thesis about the optimal choice in favor of building solar power plants, and the authors present options for solving potential economic problems. The purpose of the work was to study and evaluate SWOT regarding solar technologies. The significant gap lies in the lack of knowledge of this aspect, for example, with the help of PESTEL or Porters Five Forces analyses.
The construction of solar power plants should be seen in the broader context of the entire Namibian electricity industry. Boamah (2020) emphasizes that the construction of solar power plants will contribute to the decentralization of electricity supplies, contributing to the fight against corruption. The scholar raises the issue of implementing technical know-how and fundraising and condemns the practice when developed countries maintain their energy stability through the massive use of fossil fuels. The author emphasizes that Africa has the conditions for the widespread development of technologies and decentralized solar energy systems. The researchers focused on studying the use of solar energy systems in some countries. The disadvantages of this study can only be attributed to the lack of a deeper assessment of information and specific criteria.
Therefore, the presented scholarly literature discussed problems in the Namibian energy sector. Authors generally support the idea of decentralizing the sector to fight corruption and using solar electricity as an alternative to hydroelectric power or autonomous energy sources. A major problem in the energy sector is inadequate capital management, with electricity prices either not matching buyers ability or being too low, preventing companies from achieving financial independence. Therefore, the main problems in the energy sector are related to corruption and political barriers to investment. At the same time, the construction should focus on alternative sources such as solar energy. Fossil fuels are harmful to the environment, and solar power plants will have sufficient potential due to the weather conditions of Namibia.
Despite the conciseness and accuracy of the conclusions drawn, the studies have some limitations. These gaps provide the basis for further research. It is noteworthy that often the authors themselves indicate the limitations of their research in the conclusion of the work. However, in none of the reviewed studies, the authors indicated limitations. As a result, more work was needed to identify limitations in the studies. Although Imam et al. (2019) provide impressive data on the effectiveness of reforms in the power industry and corruption in the industry, the authors do not make recommendations for improving the process of reforming the industry and eradicating corrupt practices. Of particular note is the study by Munyoro and Shaningwa (2019), who study capital management in construction and electricity distribution. Although the authors offer specific solutions for effective money management, they do not provide recommendations for combating corruption, which is identified as one of the problems in the industry.
In turn, Streatfield (2018) argues that cross-border trade between Sub-Saharan African countries is a solution to the problem. However, based on the proposed quantitative data, the problem is only partially solved since the results of trade have a temporary limitation and are effective only in the short term. The study by Hoffmann and Dall (2018) is technically flawed as the authors consider specific settings. The study is limited to renewables, which can supply between 500 kW and 5 MW of electricity to the Namibian grid. These are the projects that currently fall under the temporary REFIT program. Thus, a key shortcoming of the study is the lack of information on various receivers and devices. Finally, the study will be limited to the next 20 years to be in line with existing development policies such as Vision 2030.
A study by Boamah (2020) evaluates the effectiveness of building solar power plants for the Namibian economy. However, the article notes the lack of a deep assessment of information and specific performance criteria. Following the limitations of this study, the results can be defined as preliminary. Erinosho et al. (2021) used such a qualitative research method as SWOT analysis to evaluate solar technologies. However, the authors failed to reveal the essence of strengths and weaknesses, as well as threats and opportunities. It would probably be more appropriate to opt for PESTEL or Porters five forces analysis. It is noteworthy that Streatfield (2018) and Hoffmann and Dall (2018) focused on the study of the introduction of renewable energy sources in specific areas of the country, which excludes the principle of universality of the study. For further detailed analysis, other quantitative and qualitative studies in other regions should be carried out.
Based on the analysis of the limitations of the study, the main and specific objectives can be formulated. The main goal is to determine the efficiency of renewable energy sources such as grid-mounted solar panels and hybrid alternatives to improve Namibias electricity sector. To do this, first, it is necessary to identify the advantages and disadvantages of introducing renewable energy sources into the Namibian electricity sector. Secondly, existing barriers to the introduction of solar renewables in Namibia need to be investigated, in particular, to investigate the problem of corrupt practices in the industry. Thirdly, it is necessary to offer preliminary solutions to identified problems during the study period.
References
Boamah, F. (2020). Desirable or debatable? Putting Africas decentralized solar energy futures in context. Energy Research & Social Science, 62, 101390. doi.org/10.1016/j.erss.2019.101390
Erinosho, M., Angula, E., Nangolo, F., & Shaanika, S. (2021). The Prospective Direction of Solar Energy in Namibia. In Advances in Material Science and Engineering (pp. 30-35). Springer, Singapore. doi.org/10.1007/978-981-16-3641-7_5
Hoeck, I., Steurer, E., Dolunay, Ö., & Ileka, H. (2021). Challenges for off-grid electrification in rural areas: Assessment of the situation in Namibia using the examples of Gam and Tsumkwe. Energy, Ecology and Environment, 1-15. doi.org/10.1007/s40974-021-00214-5
Hoffmann, J. E., & Dall, E. P. (2018). Integrating desalination with concentrating solar thermal power: A Namibian case study. Renewable Energy, 115, 423-432. doi.org/10.1016/j.renene.2017.08.060
Imam, M. I., Jamasb, T., & Llorca, M. (2019). Sector reforms and institutional corruption: Evidence from electricity industry in Sub-Saharan Africa. Energy Policy, 129, 532-545. doi.org/10.1016/j.enpol.2019.02.043
Munyoro, G., & Shaningwa, A. N. (2019). The significance of working capital management in enhancing liquidity and profitability in the electricity distribution sector in Namibia: A case of study of Central Northern Electricity Distribution Company (CENORED) (Pty) Ltd. International Journal of Research in Business, Economics, and Management, 3(1), 50-74.
Streatfeild, J. E. (2018). Low electricity supply in Sub-Saharan Africa: Causes, implications, and remedies. Journal of International Commerce and Economics, 1, 1-16.
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