End of NamPower monopoly nears
Once the single-buyer model is done away with, independent power producers will be able to sell electricity directly to town councils, regional electricity producers and even mines.
OGONE TLHAGE - The government is forging ahead with a plan that will effectively bring NamPower’s monopoly to an end. As it stands, the single-buyer model that allows only NamPower to sell electricity to regional electricity distributors, mines and large transmission users is being reviewed.
Changes to the single-buyer model were first announced by mines and energy minister Obeth Kandjoze during the Invest in Namibia International Conference that was held last year.
A year later, the energy ministry is now at an advanced stage to break NamPower’s dominance in the energy sector.
Mines and energy permanent secretary Simeon Negumbo informed Market Watch that a study had been commissioned to establish an appropriate framework that would allow independent power producers to participate in generation activities.
According to Negumbo, the review process entails a review of the current market model and the development of market rules for likely participants in the power generation sector.
“The purpose of this project is to develop an appropriate market structure framework which will open the Namibian power market to private investors and encourage investors to participate in growing Namibian generation opportunities,” Negumbo said.
Giving a report on work done, Negumbo said that a consultant was appointed at the beginning of the year to steer the process while one-on-one meetings with all major stakeholders in the energy sector were held. A second stakeholder meeting recently took place where role players were briefed and where input was garnered.
Stakeholders have been engaged to develop market rules to do away with the single-buyer model, Negumbo said.
The review was also being done with the buy-in of prospective power producers.
“While developing an appropriate market framework and rules, the ministry expects the project to be considered in a participatory manner through a combination of processes which will include a review of the previous work done and discussions with stakeholders,” Negumbo said.
Changes to the single-buyer model were first announced by mines and energy minister Obeth Kandjoze during the Invest in Namibia International Conference that was held last year.
A year later, the energy ministry is now at an advanced stage to break NamPower’s dominance in the energy sector.
Mines and energy permanent secretary Simeon Negumbo informed Market Watch that a study had been commissioned to establish an appropriate framework that would allow independent power producers to participate in generation activities.
According to Negumbo, the review process entails a review of the current market model and the development of market rules for likely participants in the power generation sector.
“The purpose of this project is to develop an appropriate market structure framework which will open the Namibian power market to private investors and encourage investors to participate in growing Namibian generation opportunities,” Negumbo said.
Giving a report on work done, Negumbo said that a consultant was appointed at the beginning of the year to steer the process while one-on-one meetings with all major stakeholders in the energy sector were held. A second stakeholder meeting recently took place where role players were briefed and where input was garnered.
Stakeholders have been engaged to develop market rules to do away with the single-buyer model, Negumbo said.
The review was also being done with the buy-in of prospective power producers.
“While developing an appropriate market framework and rules, the ministry expects the project to be considered in a participatory manner through a combination of processes which will include a review of the previous work done and discussions with stakeholders,” Negumbo said.
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