Namibian Independent Power Producers at risk

A proposed cabinet submission yet to be made by the Electricity Control Board and the Minister of Mines and Energy explicitly states the risk in allocating Independent Power Producer (IPP) licenses as not a single off-taker agreements between Nampower and the power producers has so far been finalised.

“The lack of IPPs coming into operation has perpetuated the country’s reliance on electricity imports of up to 60% at times. This is a serious risk and an impediment to the achievement of the country’s developmental goals,” the draft submission dated 2 November reads.

The ECB, NamPower and the Ministry of Mines and Energy, last year began with the interim Renewal Energy Feed-In Tariff (REFIT) plan which will allow for 27 IPPs, comprising solar PV; Concentrated Solar Power CSP; biomass and wind, to be invited to tender for a combined 70MW renewal energy to be added to the national grid.

The capacity of each IPP under the programme is limited to 5MW and NamPower will be the off-taker under the power purchase agreement. But this is only according to the ECB and not supported by NamPower actions.