ECB considers private rivals to supply electricity

By Staff Reporter

Mr. Robert Kahimise , ECB Chief Executive Officer

THE Electricity Control Board of Namibia(ECB) , an electricity regulatory body in Namibia has considered the  “Modified Single Buyer Market Model” called MSB  that will allow free entry of the independent power producers to competitively generate , supply and sell electricity in Namibia and Southern African region.

This was officially announced by Mr. Robert Kahimise , Chief Executive Officer of ECB at the recent MSB And SAPP Market access conference held in Windhoek.

“I am honoured to address you today on an important topic. As the electricity sector has long been recognised as the cornerstone of economic development, we consider the Modified Single Buyer Market Model to be a paradigm shift, within the Electricity Supply Industry not only in Namibia but the Southern Africa region.”

He said the MSB Market Model opens the Electricity Supply Industry to effective competition, in establishing a level playing field for various industry players, by allowing Independent Power Producers to compete effectively on the prices of their products.

“The main purpose of opening the market is to allow competition in the market which will lead to lower tariffs, increase local generation capacity, encourage private sector investment in generation and to reduce funding burden from Government amongst others.” Stressed Mr. Kahimise.

According to ECB CEO , the implementation of the MSB, has allowed the industry to take small but vital steps towards market stability and resilience. “As we are now in phase 1b of the implementation of the MSB, we are convinced that an increased role and level playing field for independent suppliers and generators is precisely what will help drive the competition that delivers better value for consumers and businesses.”

Access to local and the Southern Africa Power Pool (SAPP) energy markets are  the fusion of innovation, entrepreneurship and sustainable energy solutions that can propel Namibia towards its improved energy security and increased affordability of electricity to all Namibian customers.

“In Namibia, we are presented with a unique opportunity to not only meet our energy demands but to revolutionize our approach, while at the same time exporting much needed power to the region, furthering the regional integration agenda, and nurturing an environment where novel industries can flourish. The growing renewable energy sector is set to play a pivotal role in this transformation

The establishment of local generation plants not only reduces our dependence on imports but also generates employment opportunities, nurturing a skilled workforce that drives economic growth. The ripple effects of a robust electricity market extend beyond industry-specific domains. A reliable power supply facilitates infrastructure development, paving the way for government, public, and private sector industries to expand services. This, in turn, attracts foreign investment, as well as domestic entrepreneurs, who see Namibia as a land of opportunity, a conducive environment to establish and expand their businesses. ”

Mr. Kahimise explained that NamPower with support from the ECB is in the process of finalising the necessary market agreements, that will enable the smooth operation of the market for all market participants. “We fully understand the urgency to have these agreements finalised. However, this necessitates a comprehensive approach, underpinned by collaboration between these two organisations. As you are aware the MSB Agreements are published on the ECB Website and all interested Stakeholder are invited to provide written comments for our consideration. The deadline for comments is 12 September 2023.”

The MSB model approach was realised as a result of government’s efforts to provide the necessary regulatory frameworks and incentives to attract investments. “ that  means , the private sector must rise to the occasion, seizing the potential that lies within the dynamic landscape of Namibia’s energy transformation.”

He further noted that , the promise of electricity goes far beyond kilowatts and megawatts; it extends to the hearts and hopes of every Namibian. “As we stand at this juncture of possibility, let us commit to a future where sustainable energy lights the way to prosperity, where communities rise on the wings of the wind and thrive under the embrace of the sun. By embracing these resources, we not only illuminate homes but also brighten the futures of generations to come.”








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