NamPower revises its business plan
Ogone Tlhage - National energy utility NamPower is reviewing its business plan in anticipation of having to compete on an equal footing with other power producers.
NamPower has remained tight-lipped about what its plan entails and said it would only be able to lay bare its strategy once it had completed the business review.
NamPower said it would publish its new business plan towards the end of June.
“Our five-year corporate strategy and business plan is expiring at the end of June this year. The review process and shaping of a new strategy for the next five years, which will include considering changes in the market and in the electricity supply industry, started at the end of 2017 and continues. We will only be able to give you an informed response once this process has been finalised,” NamPower said.
The current single-buyer model, which allows only NamPower to sell electricity to regional electricity distributors, mines and large transmission users, will be reviewed.
This was announced by the energy minister at the Invest in Namibia International Conference in November 2016.
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,” mines and energy minister Obeth Kandjoze said.
Mines and energy permanent secretary Simeon Negumbo told Market Watch in December that a study had been commissioned to establish an appropriate framework that would allow independent power producers to participate in power generation.
Market structure
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 a consultant was appointed at the beginning of last 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.
NamPower has remained tight-lipped about what its plan entails and said it would only be able to lay bare its strategy once it had completed the business review.
NamPower said it would publish its new business plan towards the end of June.
“Our five-year corporate strategy and business plan is expiring at the end of June this year. The review process and shaping of a new strategy for the next five years, which will include considering changes in the market and in the electricity supply industry, started at the end of 2017 and continues. We will only be able to give you an informed response once this process has been finalised,” NamPower said.
The current single-buyer model, which allows only NamPower to sell electricity to regional electricity distributors, mines and large transmission users, will be reviewed.
This was announced by the energy minister at the Invest in Namibia International Conference in November 2016.
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,” mines and energy minister Obeth Kandjoze said.
Mines and energy permanent secretary Simeon Negumbo told Market Watch in December that a study had been commissioned to establish an appropriate framework that would allow independent power producers to participate in power generation.
Market structure
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 a consultant was appointed at the beginning of last 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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