Single buyer model under review The single buyer model that allows only NamPower to sell electricity to regional electricity distributors, mines and large transmission users is set to come under review. This was announced by the energy minister at the Invest in Namibia International Conference recently.
Minister Obeth Kandjoze used the same opportunity to announce that many energy policies were subject to come under review while the White Paper on Energy of 1998 would also be reviewed. Work on the electricity bill, and energy regulatory authority bills are expected to be completed by March 2017 while work on the gas bill was expected to come to completion in December 2017, Kandjoze announced at the conference.
More significantly however, was Kandjoze''s indication that the single buyer model would itself also come under review. Currently, the single buyer model makes provision for only NamPower to buy electricity from existing independent power producers. “To accommodate the ever-changing environment, a modified single buyer model is being discussed to allow independent power producers to sell directly to off-takers other than the single buyer.”
Continued Kandjoze: “While the Electricity Bill of 2016 lays the groundwork for an updated market model, the impacts of the proposed model remain uncertain, especially with regard to its economic and institutional implications. The electricity market model therefore, requires additional work before it is ready for implementation. The process of reviewing and updating the market model will be finalised by the last quarter of 2017.
The National Integrated Resource Plan Kandjoze said, was expected to be presented to Cabinet before the end of the year. The resource plan he explained, set the planning parametres for the electricity generation capacity for the next 20 years.
OGONE TLHAGE