Staff Writer
The Electricity Control Board (ECB) has announced that the minister of industries, mines and energy has renewed the moratorium on the granting of generation licences for electricity export purposes.
This move follows the recommendation by the ECB and in accordance with the Electricity Act.
The renewed moratorium will end on 5 January 2029, or until the existing transmission network constraints are alleviated, whichever occurs first.
The Modified Single Buyer (MSB) market framework currently allows private generators to develop generation capacity in Namibia for electricity export purposes.
However, limited transmission capacity on the interconnectors within neighbouring South Africa continues to constrain the export of electricity from Namibia into the Southern African Power Pool (SAPP).
This ongoing transmission constraint means that granting additional generation licences for export purposes at this time could create regulatory obligations the network is not yet able to support.
“The renewal of the moratorium is therefore a responsible and prudent regulatory measure to protect the integrity of the Electricity Supply Industry (ESI) and the interests of existing and prospective licence holders,” the ECB said.
The ECB, in collaboration with NamPower, is currently assessing the available transmission capacity and is therefore discouraging the submission of new licence applications for export purposes until further notice.
The ECB said Variable Renewable Energy Plants with Battery Energy Storage Systems (BESS) Renewable energy generating plants that incorporate Battery Energy Storage Systems (BESS) intended specifically for night-time electricity export to the SAPP are exempted from the moratorium.
This exemption is subject to the confirmation of viability and night-time transmission capacity by the National Transmission Company of South Africa (NTCSA), and will be considered on a first-ready, first-served basis, prior to any licence consideration by the ECB.
Namibian Independent Power Producers (IPPs) whose participation in transmission infrastructure upgrades within the NTCSA network and have been formally confirmed by NTCSA are also exempt.
“This exemption applies only where the relevant upgrades are specifically intended to alleviate transmission congestion and unlock additional export capacity into SAPP.
Applicants seeking to rely on either of these exemptions are advised to provide formal written confirmation from NTCSA as part of their licence application submission to the ECB.
“The ECB, in collaboration with NamPower, is currently assessing the available capacity and is therefore not considering the submission of new licence applications for export purposes until further notice. The ECB will not consider such applications until the moratorium is lifted, the applicable transmission constraints are formally confirmed to have been resolved, or the capacity assessment referred to above has been finalised,” the ECB said.
