Rural Electrification with Hybrid Mini-Grids : Finding an Efficient and Durable Ownership Model

Namibia hosts two of the largest hybrid solar off-grid electricity systems in Africa. Both systems, however, while technically sound, are plagued by a host of problems related to operations, management, and decision-making that threaten their sustainability, especially the notable lack of a national renewable energy policy, a coordinating agency, codes of practice, and proper maintenance. While it is widely agreed that access to modern energy services is a necessary element of sustainable development, the key challenge is that in many nations the absence of a clear and workable plan for the sustainable operation and maintenance of energy systems has led to disastrous outcomes. Namibia is no exception.This chapter delves into different models and speaks for an efficient and durable ownership structure as an answer to the question of off-grid electrification. It employs traditional legal research methodology along with observation and interviews to assess whether alternative legal ownership models might lead to more efficient and durable mini-grid systems. We explain the history of the development of the mini-grid projects in Namibia and report on the current conditions and shortcomings of the existing off-gird systems, zooming in on the experience at Tsumkwe and Gam in the Otjozondjupa region. A review of Namibian law on ownership structures is provided and four general options for system ownership are described, including private corporate ownership, public corporate ownership, private public partnerships, and community ownership. We conclude that a public-private partnership or private ownership model that brings to bear the private sector's profit incentive would result in more efficient and durable mini-grids