Cabinet approves revised electricity supply model

18 Apr 2019 16:00pm
WINDHOEK, 18 APR (NAMPA) – Cabinet has approved the revised Single Buyer Market Model for the Supply of Electricity which allows more for independent power producers (IPPs) to compete, to be implemented in September this year.
The modified model allows electricity consumers and IPPs to transact with each other directly for the supply of electricity, to allow for competition and to allow for private sector investment.
Addressing a media conference here on Thursday, Minister of Information and Communication Technology Stanley Simataa said Cabinet approved the revised model during the sixth Cabinet meeting on Tuesday, after it noted that the existing model did not allow for IPPs to sell whatever they generate directly to the consumer, as they are required to sell to the Namibia Power Corporation (NamPower).
Competition was also restrained for IPPs, thus revising the framework will allow IPPs to transact with each other and directly with the consumers.
“Since we are opening up, you will also have foreign entities investing in the energy sector,” Simataa said.
He noted that in the event where foreign investors are interested in investing in the energy sector, they should be persuaded to form joint ventures with Namibian entities.
President Hage Geingob, in his State of the Nation Address in the National Assembly (NA) on Wednesday said Namibia strives to achieve energy supply security through a mix of economically competitive and reliable sources, with emphasis on the development of its own generating capacity.
Geingob said Namibia’s electricity demand stood at 652 megawatts in December 2018, excluding the Skorpion Zinc mine which gets its electricity supply directly from Eskom.
The country increased local generating capacity from 400 megawatts in 2015, to 557 megawatts in 2018 through NamPower and IPPS.
The president said Namibia generates 40 per cent of its own electricity demand from renewable sources, which contribute a total of 189 megawatts to national supply.
“The unbundling of distribution are key reforms that have opened up the sector for investment, to the tune of N.dollars 3 billion,” said Geingob.