Justicia Shipena
Small embedded generation projects in Namibia could soon be capped at 2 MW or 5 MW under proposed simplified licence conditions presented during consultations in Windhoek.
The Electricity Control Board (ECB) held a stakeholder workshop at the Avani Hotel on Tuesday to discuss new licence conditions and application forms for simplified generation projects.
ECB chief executive officer Robert Kahimise said embedded generation is becoming more important in Namibia’s electricity supply industry and requires regulatory clarity and compliance to support sector growth.
He reminded stakeholders that under the Electricity Act of 2007, a licence or exemption is required for any person or entity to generate, trade, transmit, supply, distribute, import or export electricity in Namibia.
Kahimise noted that over-regulation can create barriers to entry and affect growth in the electricity supply industry. For this reason, the ECB launched a project to review which generation projects could qualify for a simplified licensing process.
Consultants Jacky Scholtz and Uli von Wiedlich presented the proposed framework. They explained that the ECB identified growing investor interest in embedded generation projects of up to 2 megawatts, including solar rooftop systems and pilot projects, especially in technologies such as green hydrogen.
They said the current standard licence conditions were designed for large generation projects and are not suitable for smaller embedded projects. The review aims to introduce simplified licence conditions to support investment and operations without creating unnecessary barriers.
The consultants said an earlier proposal suggested a cap of 2% of total installed and operational licensed generation capacity on the national grid. This has now been revised to a specific capacity limit of up to 2MW or 5MW.
On licence duration, they said the period should be determined using the same standard criteria applied by the ECB, with applicants proposing and motivating their preferred duration.
They also addressed tariffs, regulatory levies and surcharges. For simplified generation projects used for own consumption, in reseller arrangements or in willing-buyer-willing-seller agreements, a detailed schedule of approved tariffs may not be required. In such cases, financial regulation can be simplified. However, where tariffs affect customers or other operators, an approved tariff schedule will be required, and the same tariff methodology applied in Namibia will apply. Regulatory levies and surcharges will remain compulsory and will be imposed on the customer or person supplied with electricity, as with other licensees.
The consultants said simplified generation projects that connect to the national grid must comply with all relevant rules, codes and connection requirements. Monitoring and reporting requirements will apply. The applicant must be the person who will operate the project, and the licence will be issued in that person’s name. Projects must also comply with environmental, health and safety laws and meet the same decommissioning requirements as other electricity projects.
Application procedures under the Electricity Act remain compulsory. This includes advertising generation projects and inviting objections. Licence fees may be reduced for simplified projects through amendments to the Administrative Regulations, but surcharges and levies will remain mandatory.
The proposed licence structure will include a certified licence certificate issued and signed by the regulator, common licence conditions for all simplified projects, specific conditions tailored to each licensee, and schedules covering project details, approved tariffs and technical and performance parameters.
Common conditions will deal with the issue of the licence, commercial operation, embedded generation, own consumption, term of licence, submission of information, transfer and renewal, cancellation or suspension, tariffs where applicable, asset registers, compliance standards, and levies and surcharges. Specific licence conditions will cover financial information and records, funding or grant sources, energy production statistics, verification of data, commercial operation and capital costs.
The workshop also outlined the next steps, which include developing simplified application guidelines, amending the electricity administrative regulations and continuing stakeholder consultations.
The workshop aimed to help stakeholders understand why the simplified licensing process is being introduced. It explained which types of projects will qualify and how the process will reduce obstacles, support growth in the electricity sector, and still follow the law.
