Namibia Electricity Licences, Rights and Permits

By | February 5, 2020

How to get Electricity Licences, Rights and Permits in Namibia

This section explains the licensing regime in Namibia in respect of the electricity supply industry.

Overview

This article is an initiative of the Ministry of Mines and Energy aimed at explaining the types of licenses and permits administered and issued by the Ministry and the application and evaluation processes followed by the Ministry in granting licenses.

The expected outcome of this document is to give possible investors, project proponent and interested parties a quick overview and understanding of how licensing of mining and energy permit activities are undertaken by the Ministry in the context of the relevant legislative framework.

ELECTRICITY LICENCES IN NAMIBIA

The function of administering and managing electricity licences is bestowed on the Electricity Control Board (ECB) as established by the Electricity Act, The submission, evaluation and management of all electricity licences reside with ECB. However, the power to grant or refuse licences resides with the Minister of Mines and Energy, upon recommendation and based on the evaluation made by ECB.

1. Types of Electricity Licences in Namibia

Section 17 of the Electricity Act, 2007 (Duty to obtain a licence) states that no person may establish or carry on generation, trading, transmission, distribution, supply, import or export of electricity without a licence.

1.1. Generation License

Required for any generation plant which has a capacity of more than 500
kVA

1.2. Trading Licence

In the current market model only NamPower has a license to trade electricity through the electricity market.

1.3. Transmission License

In the current market model only NamPower has the electricity transmission license.

1.4. Distribution License

Require for by any distributors of electricity where the estimated total
demand of the installation is more than 500 KVA.

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1.5. Export License

In the current market model only NamPower has the right to export
electricity.

1.6. Import License

In the current market only NamPower has the right to export electricity.

2. Nature of Applications

2.1 Issue of new License

Unless a person already holds a license to carry out a particular electricity
activity a new license application is required

2.2 Renewal of License

A license may be renewed beyond its valid period at the discretion of the
Minister as recommended by the ECB.

2.3 Amendment of License

A licensee may apply to amend any license that has been granted in term
of the Electricity Act, 2007 such an amendment is subject to approval by the
Minister.

2.4 Transfer of License

Unless approved by the Ministers on recommendations of the ECB a license
may not be transferred from one person/ company to another.

2.5 License exemption

For those electricity activities that are exempted from license requirements
as indicated in Section 18 of the Electricity Act, 2007.

3. How to apply for Namibia Electricity Licence and Permit

3.1. An application for a license is made in the prescribed form which can be downloaded https://www.ecb.org.na/index.php/licensing/licenseapplication-procedure

3.2. The following information is required when completing an application form:

(a) Particulars of individual such as name, ID number, address, contact
number etc. or in case of a company documents such as company
registration, signed resolution of the board approving the submission,
shareholding structure, etc. to prove the legality of such an application.

(b) An accurate map to indicate where the plant will be situated plus a
temporary or permanent right to the land on which the plant will be
located to prove that the concerned Licencee has rights or can acquire
the land required to carry out the said activities.

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(c) Technical and economic-financial details including design description, complete tariff schedules, calculation of the net present value of the proposed plant to prove the business case

NB: For further information, please visit the ECB website at www.ecb.org.na.

4. What happens to my application once it is submitted?

During the evaluation and in dealing with any licence application the steps below are followed:

4.1. The ECB secretariat carries out a preliminary evaluation and assesses the completeness of the licence application.

4.2. The licence application is advertised in any of the local English newspapers. The purpose is so that any aggrieved parties can object to the licence application within 30 days after the advert placement.

4.3. A complete evaluation is done parallel to the 30 days, and in addition to that, any objection received is considered by the ECB. Where necessary a
public hearing can be scheduled, and both the applicant & objector(s) are informed not less than 14 days from the hearing date.

4.4. Not later than 30 days after the hearing, if any, or 30 days after the objection period expires, the ECB must submit the licencee application with their recommendation to the Minister.

4.5. The Minister may grant or refuse to issues the licence applied based on the recommendation by the ECB.

NB: If the application for the issue of licence is refused the Minister should inform the applicant in writing stating reasons for such a refusal.

5. Evaluation Criteria

The evaluation criteria used to assess the Licence application are summaries as follow:

5.1. Possible impacts on the environment and the rights and operations of others versus the benefits arising from grading a Licence. The Minister may require an Environmental Impact Assessment (EIA) to be conducted.

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5.2 Adequate technical and economic-financial resources of the prospective Licencee to successfully conduct its Licenced business considering the technical and economic-fnancial viability of the project.

5.3 The ability of the application to provide adequate and sustainable services to the customers.

2.4 Whether the grant or refusal of the Licence is in the public interest

NB: The above list is not an exhaustive list of criteria and the ECB or the Minister may take into account any other relevant evaluation criteria.

GENERAL PROVISIONS

When applying for a Licence, please take the following pointers into consideration:

a. Incomplete applications will not be considered

b. Late submissions will be handled in accordance with the provisions of the respective legislations

c. The relevant application fee must be paid and a copy of the receipt submitted with the application.

d. The cashier at the Ministry operates within the hours of 9am-12pm.

CONCLUSION

The Ministry of Mines and Energy is committed to serving the public in a free, fair and transparent manner. In case of any queries, please contact the Ministry at the following

CONTACT US

Contact the Ministry of Mines and Energy for additional support on acquiring Electricity Permits and License in Namibia

The Ministry of Mines and Energy
6 Aviation Road
Private Bag 13296
Windhoek
Email: info@mme.gov.na
Tel: +264-61-284 8111
Fax: +264-61-2848176