Electricity market opened to allow new entrants and investment opportunities
The Electricity Control Board (ECB), Namibia Power Corporation, and the Southern African Power Pool (SAPP) with support from the European program GET.transform on Monday launched the SAPP and Modified Single Buyer (MSB) Market Access Guide.
The guide provides an overview of market rules and roles in Namibia’s MSB and the SAPP regional market. It assists IPPs in understanding and navigating necessary processes and outlines requirements for active participation in both markets.
“With the introduction of the MSB market model, we have successfully opened our electricity market to allow new entrants, new investment opportunities as well as new technical possibilities for the electricity supply industry,” the Minister of Mines and Energy, Tom Alweendo said in a statement.
According to Alweendo, locally, the MSB allows certain electricity consumers and IPPs to transact with each other directly for the supply of a certain portion of their electricity requirements.
“Under the MSB, all transmission-connected customers such as Regional Electricity Distributors (REDs), Local Authorities in non-REDs areas, mines, and large distribution-connected customers are allowed to buy a portion of their electricity from local IPPs,” he said adding that at a cross-border level, the MSB also allows for IPPs to be set up in Namibia specifically for electricity export purposes.
According to Alweendo, open access to both the SAPP and MSB markets is not only a boost for national and regional electricity trading but will provide vital infrastructure and insights for realizing our continental vision of Africa’s 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,” said Stephen Dihwa, SAPP, Coordination Centre Executive Director.
Meanwhile, ECB Chief Executive, Robert Kahimise reiterated that from a policy perspective, Namibia’s MSB market model has opened the door to a whole range of new investors and enables exports into the SAPP markets.
“The guidelines offer vital information to anyone interested in tapping into this potential,” he added.
SAPP, which is a regional organization of power utilities within the Southern African Development Community was created in August 1995 and has been successful in promoting the cooperation and coordination of the power sectors of its member states, including planning and operations activities of the SAPP interconnected grid, and the establishment of competitive electricity markets.
