The National Energy Fund (NEF) is a critical instrument established by the Ministry of Industries, Mines and Energy to support the sustainable development and management of Namibia’s energy sector. The NEF plays a vital role in ensuring energy security, affordability, and accessibility for all Namibians. The NEF plays a vital role in shaping Namibia’s energy future, ensuring that the country has a secure, affordable, and sustainable energy supply.
National Energy Fund
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Key Functions
- Petroleum Equalisation Levy: Collects and manages the Petroleum Equalisation Levy imposed on controlled petroleum products consumed in the country.
- Fund Management: Receives and manages funds on behalf of the Motor Vehicle Accident Fund and Road Safety Secretariat.
- Electricity Levy: Collects electricity levies on behalf of Nampower.
- Slate Account Administration: Manages the Slate Account, which is an account between the State and petroleum product suppliers to address under-recoveries and over-recoveries.
NEF’s Objectives
- Fuel Road Delivery Subsidies: Pay for subsidies for fuel deliveries to rural and remote areas.
- Energy Research and Development: Support research initiatives to explore and develop new energy sources.
- Energy Sector Investment: Provide funding to institutions and individuals involved in energy-related activities.
- Energy Quality Improvement: Enhance the quality of energy supply and services.
- Renewable Energy Projects: Fund renewable energy projects to promote sustainable energy development.
- Regional Electricity Distributor Support: Provide soft loans to REDs for energy-related projects.
- Electricity Price Subsidies: Subsidize electricity pricing for identified poor communities and to mitigate temporary price shocks.
NEF’s Establishment and Legal Framework
- The NEF was established in 1990 by the Petroleum Products and Energy Act of 1990, Section 11, Subsection 1 and 2, as amended in 2003.
- It receives funds from the Petroleum Equalisation Levy, MVA Fund, Road Safety Secretariat, and Nampower.
NEF’s Impact
Through its various functions, the NEF contributes to:
- Energy Security: Ensuring a reliable and stable energy supply.
- Equitable Access: Promoting equitable access to energy for all Namibians.
- Sustainable Development: Supporting the development of a sustainable and diversified energy mix.
- Efficiency and Quality: Enhancing the efficiency and quality of energy services.