Namibia extends power export licence freeze until 2029
The government has extended a moratorium on the granting of electricity generation licences for export projects until January 2029, citing persistent transmission constraints in neighbouring South Africa that continue to limit Namibia's ability to export power into the Southern African Power Pool (SAPP).
The Electricity Control Board (ECB) announced on Monday that the minister of industries, mines and energy renewed the moratorium on the ECB's recommendation in terms of Section 21(1) of the Electricity Act.
The renewed moratorium is effective from 5 September 2025 and will remain in force for 40 months, ending on 5 January 2029, or until existing transmission network constraints are resolved, whichever comes first.
According to the ECB, Namibia's Modified Single Buyer market framework allows private companies to develop electricity generation projects for export. However, limited transmission capacity on interconnectors within South Africa continues to restrict electricity exports from Namibia into the regional power pool.
The regulator warned that issuing additional export generation licences under the current circumstances could create obligations that the transmission network cannot accommodate.
"The renewal of the moratorium is therefore a responsible and prudent regulatory measure to protect the integrity of the Electricity Supply Industry and the interests of existing and prospective licence holders," the ECB said.
The ECB said it is working with NamPower to assess available transmission capacity and is discouraging the submission of new licence applications for electricity export projects until further notice.
Despite the freeze, the regulator has created two exemptions.
Projects combining renewable energy generation with Battery Energy Storage Systems (BESS) for night-time electricity exports may still qualify for licences, provided the National Transmission Company of South Africa (NTCSA) confirms both their viability and the availability of transmission capacity.
The second exemption applies to Namibian independent power producers that participate in transmission infrastructure upgrades within South Africa's network, provided NTCSA formally confirms that the upgrades will ease congestion and unlock additional export capacity.
Developers seeking either exemption must submit written confirmation from NTCSA as part of their licence applications.
The ECB stressed that the moratorium is aimed solely at addressing transmission bottlenecks and is not intended to discourage investment in Namibia's electricity sector.
It said the regulator remains committed to supporting local electricity generation for domestic supply, as well as renewable energy, storage and hybrid projects that can help address the infrastructure constraints underpinning the moratorium.
