ECB eases small-scale energy rules
The Electricity Control Board (ECB) has introduced revised and simplified licence conditions designed to stimulate investment in small-scale electricity generation projects of up to 2 megawatts (MW) and, in certain instances, 5MW.
The proposed changes were unveiled during a stakeholder workshop in Windhoek this week, where the regulator outlined a streamlined framework for "simplified generation projects." These encompass embedded systems, such as solar rooftop installations, and pilot projects involving emerging technologies, particularly within the green hydrogen sector.
According to the ECB, existing licence conditions were primarily tailored for large-scale utility projects and acted as a deterrent to smaller investors. The new regime seeks to dismantle unnecessary regulatory barriers while ensuring continued compliance with national energy laws and safety standards.
A significant shift in policy involves replacing the previously proposed 2% national grid capacity cap with a definitive project-based threshold of either 2MW or 5MW. Furthermore, the regulator indicated that licence fees for these simplified projects could be reduced, pending amendments to current administrative regulations.
Regarding tariffs, projects generating electricity for self-consumption or operating under "willing-buyer-willing-seller" arrangements will no longer require detailed, approved tariff schedules. This shift significantly reduces financial oversight for private agreements. However, standard regulatory approval will still apply in cases where tariffs impact the broader consumer base.
Despite the move toward deregulation, several core obligations remain. Applicants must still comply with the Electricity Act, which includes publicising projects to allow for objections. Additionally, environmental, health, and safety standards—alongside decommissioning requirements and compulsory regulatory levies—remain non-negotiable.
The ECB emphasised that while it aims to foster innovation, Namibia’s regulatory framework remains technology-neutral. The next steps involve drafting formal application guidelines, amending administrative regulations, and concluding stakeholder consultations before final implementation.
