Rundu: Executive Director of Agriculture, Fisheries, Water and Land Reform, Ndiyakupi Nghituwamata has warned that the escalating cost of electricity poses a serious threat to the long-term sustainability of Namibia's green schemes, especially due to high electricity tariffs. Nghituwamata made the remarks on Monday during the National Green Schemes Stakeholder Consultative Meeting hosted by the Electricity Control Board (ECB) in Rundu.
According to Namibia Press Agency, Nghituwamata stated that the rising electricity costs continue to exert immense financial pressure on farmers and undermine the overall viability of green schemes across the country. Each green scheme project spends close to N.dollars 1 million per month on electricity alone, which accounts for roughly 35 percent of its total revenue. This burden severely affects profitability and long-term operational sustainability.
Nghituwamata noted that the ministry has made investments to improve the efficiency of farm infrastructure and energy usage at green scheme projects. These include the installation of variable speed drives to enhance pumping efficiency, implementation of power factor correction systems, use of high-efficiency motors, and adoption of irrigation scheduling to optimise energy consumption. However, despite these interventions, high electricity costs remain a significant challenge.
She further revealed that a Cabinet-appointed team had previously engaged NamPower and the Ministry of Mines, Energy and Industry to assess and propose solutions to the energy challenges affecting green schemes. However, those efforts did not yield tangible results. Nghituwamata emphasized the importance of the workshop as a platform to build on previous engagements and develop practical, implementable, and sustainable solutions to ensure the long-term viability of green schemes.
Nghituwamata also urged stakeholders to explore innovative energy management approaches, such as the peak shaving method, which allows projects to cut costs by managing and optimising energy use during high-tariff periods.
Meanwhile, Electricity Control Board Chief Executive Officer, Robert Kahimise, stated that one of the main objectives of the workshop is to assess and understand the current tariff structures applicable to green schemes, particularly within the Northern Regional Electricity Distributor licence area. He added that the workshop also aims to evaluate the impact of electricity costs on agricultural productivity and national food security, as well as to identify innovative and sustainable energy management practices that can help reduce operational costs for green schemes.