Prefeasibility Study for Biomass Power Plant, Namibia: Energy policy framework

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This section is based on information gathered from a literature survey as well as from a meeting that was held with the Electricity Control Board (ECB) of Namibia. The Electricity Supply Industry (ESI) in Namibia is made-up of several players of which NamPower is most prominent due to its presence in Generation, Transmission, Distribution and Energy Trading. NamPower is currently the only Generator of electricity although several Independent Power Producers (IPPs) have been licensed, most notably in the Solar and Wind generation sector. In the Distribution sector there are three Regional Electricity Distributors (REDs) in which NamPower also has shareholding and several other players consisting of local authorities, regional councils and private companies. An enabling legislative and regulatory environment exist for the introduction of IPPs into Namibia. Renewable or "green" energy is also being promoted in Namibia although there are no Renewable Feed-In Tariffs currently available. The licensing of an IPP that uses intruder bush to generate electricity will consequently depend on that IPP successfully negotiating a Power Purchase Agreement (PPA) with NamPower. Such a PPA should be acceptable from a customer and IPP standpoint by balancing the needs for affordable tariffs form a customer point of view and sufficient returns from the IPP investor point of view.

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