Guide
Guide

Guide launched to support IPPs

Ellanie Smit
A guide to support independent power producers (IPPs) in accessing the national and regional energy trading markets has been launched.

The guide was launched jointly by Namibia’s Electricity Control Board (ECB), NamPower and the Southern African Power Pool (SAPP) at the SAPP Market Access Conference in Windhoek yesterday.

According to a joint statement, the SAPP and MSB Market Access Guide", was launched with support from the European programme GET.transform.

It said by providing an overview of the market rules in Namibia’s Modified Single Buyer (MSB) and the SAPP regional market, this guide addresses the urgent need for consolidated information.

"It assists Integrated Personnel and Pay Systems (IPPs) in understanding and navigating the necessary processes and outlines the requirements for active participation in both markets.

“While almost all electricity trading is still done by national utilities, SAPP member states are increasingly looking at deregulating their national markets and also opening up for regional market participation."

Pioneers

It said that through the introduction of the MSB market rules, Namibia has partially opened its electricity market.

"This pioneering position makes the country a perfect model for lessons and replication in other SAPP member countries."

The first edition of the SAPP and MSB Market Access Guide has been developed as a reference guide for future editions.

"Firmly acknowledging the local MSB market in Namibia, with this guide, we provide structured information on how to become an active SAPP member. We are starting from the advanced Namibian perspective but ultimately aim to boost electricity trading in the entire region through increased participation of independent players", said Stephen Dihwa, the Southern African Power Pool coordination centre executive director.

Energy hub

According to the statement, Namibia’s decision to deregulate its electricity market is driven by the country’s objective to enhance security of supply and its ambition to become Africa’s renewable energy hub.

A greater share of renewables in the power mix requires increased distributed generation and must provide clear technical and commercial rules for grid access and trading to both the hosting national utilities and the various market participants.

"From a policy perspective, our MSB market model has opened the door to a whole range of new investors and enables exports into the SAPP markets. The guidelines offer vital information to anyone interested in tapping into this potential", explained Robert Kahimise, chief executive officer of the ECB.

With a view to the evolving market in Namibia, Simson Haulofu, managing director of NamPower, said that pioneering any market reform does not come without its challenges, and implementing the MSB market is no exception.

"While this guide may not resolve or answer all the technical and commercial questions, it provides a solid foundation to enable a common understanding for all potential and existing participants in the MSB and SAPP markets."

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Namibian Sun 2024-11-22

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