The Ministry of Mines and Energy and Northern Regional Electricity Distributor (Nored) have launched a Service Level Agreement through the Solar Revolving Fund (SRF).

The Executive Director in the Ministry of Mines and Energy, Bryan Eiseb, in a statement availed to Nampa said the agreement covers the grid connections financing mechanism intended for off-grid communities living in the Nored licensing areas.

“The Namibian Government, through the MME has identified rural electrification as a programme of critical importance to improve the livelihood of rural communities,” the executive director said.

He said even though grid infrastructure is available in many rural communities, the connection still require funds to be made available, to procure the required infrastructure.

Eiseb explained that the ministry through the SRF provides financing to communities living in off-grid areas, to enable them to have access to energy services. According to the ministry’s strategic plan, SRF targets the financing of 400 off-grid households during this financial year. To achieve this objective, the ministry established strategic alliances with REDs that allows consumers to make use of the available financing programme and subsidy, hence the agreement with Nored.

He further said Vision 2030 envisions the provision of secure and affordable energy to support economic development and improve the quality of life for peri-urban and rural communities to achieve national development goals, while Harambee Prosperity Plan Two, amongst others aims to electrify about 6 000 rural and 13 000 peri urban households.

This financing mechanism therefore aims to contribute to the achievement of the energy goal of secure and cost-effective energy supply, Eiseb noted.

He said the Ministry of Mines and Energy through SRF will continue to roll out the grid connection financing mechanism to all REDs.

Source: The Namibian Press Agency