Namibia Renewable Energy Scale Up Support Project

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The World Bank has an ongoing sector engagement since 2018 with the Government of Namibia based on a comprehensive strategy built around clean and affordable energy. As part of this engagement, the Bank completed a RE roadmap under the Sustainable Renewables Risk Mitigation Initiative (SRMI) to support the development of bankable and sustainable RE projects. This roadmap lays out options for the country on how to develop and implement sustainable and bankable RE programs. In addition to exploring approaches for risk mitigation, the RE roadmap also explores opportunities for maximizing the socio-economic benefits triggered in terms of jobs creation, skills development and local development and near-term options for Namibia to transition to a regional power exporter leveraging its world class solar resources. In addition, the World Bank mobilized trust fund resources to assess options for integrating VRE technologies in Namibia's power system to inform public investments such as BESS for unlocking private investments in RE. The World Bank also supported the development of a geospatial least cost electrification plan aimed at delivering a comprehensive grid expansion, and off-grid complement plan to put the country on a path toward universal electricity access. NamPower is finalizing an Integrated Supply Plan (ISP) outlining options for least cost expansion of the country’s electricity generation mix, which envisions significant addition of renewable energy capacity. To achieve its goal of affordable and clean energy expansion, NamPower needs to attract private investment while ensuring RE can be integrated into the grid. This would require preparatory work and advisory support to mitigate the development risks which can further improve the risk profile of the projects, hence making them more affordable for the country, as well as capacity building to empower the key stakeholders and ensure the replicability of the approach as the ISP gets rolled out. The proposed TA of USD 4.5 million RETF grant is envisaged to support public investments enabling solar and wind projects, such as BESS, that are critical to unlocking private investments in renewable energy generation. The project components are aligned with the country’s IRP and will be further informed by the ongoing VRE integration study. The proposed Project will carry out (i) preparatory studies to support the development of RE projects; and (ii) advisory and capacity building to support procurement of RE projects. 1) Component 1: Preparatory studies to support development of RE projects (US$2.44M): This component will focus on preparatory studies to reduce the risk of RE project development, including resource assessment studies, safeguard studies, site studies, and feasibility studies. i. Resource assessment: The resource assessment studies aim to measure and collect bankable data for wind and solar in selected areas (prioritizing wind resource measurement). The main objective of this assignment is to provide high quality measurement data from multiple sites to support future development of wind/solar projects at targeted sites. This is expected to be carried out for specific sites (to be identified through locational studies under the ongoing VRE integration study) by an international consulting firm. The contract is expected to result in bankable reporting data (after 24 months for the wind sites).ii. Studies: - Safeguard studies: Environmental and social studies as per the Environmental and Social Framework (ESF) that integrate gender considerations to ensure all vulnerable groups benefit from the projects, will be carried out for the RE projects prioritized (wind/solar/BESS) as well as for the transmission lines needed for integration of renewables. - Site studies: Site studies, such as topography study, geotechnical/seismic study, hydrological study, logistic study, will be carried out for the RE projects prioritized through locational studies as well as resource assessments. The full scope of the studies will be finalized during Project implementation. - Feasibility studies: Feasibility studies will be carried out for the RE projects prioritized (targeting at this stage 200 MW of RE) and transmission lines prioritized. The scope of work is expected to cover the analysis needed to inform the technical specifications of the solar/wind projects and/or the transmission lines prioritized. The feasibility studies will also take into consideration gender impacts pertinent to land resettlement in areas where installation of energy infrastructure will be necessary.2) Component 2: Advisory and capacity building to support procurement of RE projects (US$2.0M): Solar and wind generation capacity are expected to be developed through IPP/PPP schemes. i. Transaction advisory services to support the Project Implementation Unit (PIU) in structuring and tendering of bankable and sustainable RE projects. The transaction advisory services are expected to support the specific projects defined during the resource measurement and the feasibility studies stage (targeting 200 MW RE).ii. Capacity building: Capacity building activities on development and implementation of sustainable and bankable RE projects will be carried out for the PIU of the Project and will involve as applicable key public stakeholders involved in the solar/wind bidding process such as the MME and the ECB in addition to the Utility (NamPower - PIU). Given the underrepresentation of women in RE, capacity building activities will ensure meaningful engagement of women in various roles to tackle some of the gender gaps in the sector. Specifically, capacity building will include training of NamPower staff to increase their awareness of gender disparities within the RE sector and to ensure meaningful engagement of women and women-led enterprises in the project and in the development of the sector. Training will include areas such as gender-inclusive procurement to ensure gender equality in RE vendor bidding processes.iii. Project management: This will support the PIU for the RETF-funded activities during implementation of the Project.