Revised electricity model to unleash 600 megawatts

Chamwe Kaira

The introduction of the Modified Single Buyer (MSB) model has the potential to unlock an estimated 600MW of Solar PV equivalent capacity, according to Chamwe Kaira.

Under the MSB system, certain electricity consumers and Independent Power Producers (IPPs) can engage in direct transactions for supplying a portion of their electricity needs. Pinehas Mutota, the General Manager of Economic Regulation at the Electricity Control Board, revealed this development.

Mutota emphasized that the MSB fosters greater competition, choice, and increased private investment, which in turn provides Namibia with the optimal opportunity to efficiently expand its local power generation. Furthermore, it enables the construction of generation plants for export purposes, adding to the prospects for local power generation capacity.

Exporters are now permitted to participate in the modified single-buyer market, and traders can engage in it for export purposes. Mutota also highlighted that traders have the opportunity to partake in the Modified Single Buyer market.

Furthermore, it has been decided that contestable customers, who have the freedom to select their electricity provider, can purchase up to 30% of their energy through MSB transactions. This initiative commenced its first phase on September 1, 2019, continuing until the end of June 2021. During this phase, contestable customers could source up to 30% of their energy demand from eligible generators. The third phase is set to conclude in June 2026.

Notable contestable customers in Namibia include, Cenored, B2Gold, City of Windhoek, Elizabeth Bay Mine, Embwinda Fishing, Erongo RED, Gobabis Town Council, Keetmanshoop Municipality, Luderitz Town Council, Mariental Town Council, Namdeb Diamond Corporation, Namibia Breweries Limited, Namibia Poultry Industries, Namib Mills, NamZinc, Navachab Gold Mine, Nored, Ohorongo Cement, Okahandja Town Council, Oranjemund Town Council, Orano Mining Namibia, Oshakati Premier Electric, Osino Gold, Plastic Packaging, Rehoboth Town Council, Rosh Pinah Zinc Mine, Rossing Uranium, Salt & Chemicals, Sea Works, Skeleton Coast Trawling, Sun Water, Swakop Uranium, Tsumeb Smelter, Tunacor Fisheries Limited, University of Namibia, Wernhil Park, and Whale Rock Cement.

Related Posts