Incorporating renewable energy as an alternative source of energy in the extractive industry : a case study of Namibia

Abstract

Energy is essential in the modern world, as it is required for the performance of various economic activities. Electricity, apart from liquid fuel, is one form of energy which is crucial for development, it is mostly generated from fossil fuels such as coal. The process of electricity generation from fossil fuels, however has negative implications for the environment, such as the depletion of the ozone layer through the emission of greenhouse gases. Moreover, despite the negative implications on the environment, fossil-based electricity is considered reliable and cheap in comparison to other sources of energy such as renewables. Several economic activities require large amounts of energy in their operations and processes, an example of this type of economic activity is mining. However, some mines are located far from the main grid and are usually faced with power supply problems, it would be beneficial for such mines to consider alternative energy sources such as renewable energy. In addition, using renewable energy in the mining sector has other benefits such as the lower emissions of greenhouse gases. The research investigates the potential incorporation of renewable energy as an alternative source of energy into the Namibian mining sector. The rationale behind this research is that Namibia has some uncertainty regarding security of supply when it comes to electricity, considering that it exports majority of its electricity supply from the Southern African Power Pool. The research ascribes to the theories of reasoned action and the renewable energy transition. Furthermore, several business models befitting use for RE projects were identified and discussed, the research suggests that the type of business model to be used is largely determined by the geography as well as the jurisdiction. The investigation reveals that the business model suitable for use in the Namibian mining industry for RE projects is the net metering model, this is because Namibia has published net metering rates. Lastly, the investigation revealed that there is great potential for the incorporation of renewable energy into the Namibian mining sector due to the fact that Namibia is richly endowed with a good solar regime and windy coastal areas. However, despite this, there are several challenges that may hinder the successful incorporation of RE into the mining sector. The challenges were categorised as economical, political, technical as well as social.