The Electricity Control Board (ECB) has called on Namibia’s mining industry to take advantage of the Modified Single Buyer Market Model as a strategy to reduce electricity input costs.
The call comes as electricity remains a significant operational expense for mines in the country, and energy security remains a concern.
According to ECB CEO Robert Kahimise, large mines such as Rössing Uranium have already begun taking advantage of the model, which allows them to self-supply up to 30% of their energy needs at a reduced cost.
He said the model is particularly beneficial for mines, which are classified as “contestable customers” in the modified system.
“As far as mines in Namibia are concerned, we have availed opportunities to lower the input cost of electricity into their business. We have seen Rössing and others licensed to supply themselves, and about 30% of their energy will now come from lower-cost, non-power sources to make them more competitive,” said Kahimise.
The ECB has also been working closely with NamPower to address concerns about the country’s reliance on imported electricity.
Currently, Namibia imports nearly 60% of its electricity from neighbouring countries, including South Africa and Zambia, highlighting the need for local baseload power generation.
“We are almost always using imports as baseload. Namibia has not given up on the idea of having its baseload power supply, and we are aware of potential developments around the Baines power plant Kudu Gas Field and other projects that could serve this need. These kinds of projects are capital-intensive, but we are pursuing them in partnership with both the private sector and government,” Kahimise noted.
Despite challenges in establishing a local energy supply, Kahimise said the ECB remains optimistic about renewable energy’s role in stabilising the energy system.
He noted that the regulator has issued licences for wind and solar photovoltaic projects, which could contribute to a hybrid energy mix in the future.
“There are several incentives to encourage ordinary consumers to adopt rooftop solar installations, such as the Solar Revolving Fund offering soft loans at low interest rates. At the national level, we, as the regulator, aim to ensure that all consumers benefit from a proper energy mix, improving both the cost and quality of life,” added Kahimise.
The call from the ECB comes at a crucial time as Namibia continues to balance its energy needs with the goal of maintaining affordable electricity for all sectors.
Kahimise noted that with the mining industry being a key player in the nation’s economy, reducing energy costs could have significant implications for its continued growth and competitiveness.
This comes as Rössing Uranium is planning to construct a 15 megawatts (MW) solar plant at its mine in Namibia this year to reduce energy costs, carbon footprint and dependence on third-party energy sources.
The plant, with a capacity to generate around 50,000MWh per year, will be built on a 70-hectare site adjacent to the access road between Arandis and the Mine.
Meanwhile, B2Gold expects to boost renewable energy usage at its Otjikoto Mine in Namibia with a 10MW solar plant, expected to be operational by the end of 2024.
The facility being developed by Sustainable Power Solutions and partners, will supply 25% of the mine’s electricity needs from renewable sources, with the mine as an off-taker.
