Namibia opens electricity market to new entrants

Namibia has opened its electricity market to independent power producers (IPPs) and helped investors enter markets of other regional countries.

Namibia’s Electricity Control Board (ECB), Namibia Power Corporation (NamPower) and the Southern African Power Pool (SAPP), on Monday, launched the SAPP and Modified Single Buyer (MSB) Market Access Guide.

The launching held at a two-day conference in Windhoek, the capital of Namibia.

SAPP is a regional organisation of power utilities within the Southern African Development Community.

It is an intergovernmental organisation, created in August 1995. And it has successfully promoted cooperation and coordination of the power sector of its member states.

The guide helps independent power producers understand necessary processes. It also outlines requirements for their active participation in power markets in Namibia and other regional countries.

“With introduction of MSB market model, we have successfully opened our electricity market to allow new entrants, new investment opportunities.

“And new technical possibilities for the electricity supply industry,” Namibia’s Minister of Mines and Energy, Tom Alweendo, said in a statement.

According to Alweendo, the ministry introduced the MSB model as a new market platform in 2019.

The model has strengthened the role of IPPs. This is by allowing some consumers to purchase certain portion of their electricity needs directly from the IPPs.

Before its introduction, power could only be purchased by state-owned NamPower.

Since the launch of the MSB market in Namibia, there have been requests for support with SAPP market access.

“Under the MSB, all transmission-connected customers … are allowed to buy a portion of their electricity from local IPPs,” Alweendo said.

The minister added that at cross-border level, MSB also allows setting-up of IPPs in Namibia, specifically for electricity export purposes.

According to him, open access to both the SAPP and MSB markets is a boost for national and regional electricity trading.

It will also provide vital infrastructure and insights for realising the continental vision of the Africa Single Electricity Market.

“Firmly acknowledging the local MSB market in Namibia, with this guide, we provide structured information on how to become an active SAPP member.

“We are starting from the advanced Namibian perspective but ultimately aim to boost electricity trading in the entire region through increased participation of independent players,” Stephen Dihwa, Coordination Centre Executive Director of SAPP said.

Meanwhile, Robert Kahimise, the Chief Executive Officer of the ECB, reiterated that from a policy perspective, Namibia’s MSB market model has opened the door to new investors and enables exports into the SAPP markets.

“The guidelines offer vital information to anyone interested in tapping into this potential,” he added. (Xinhua)