Namibia’s energy sector is poised for a new regulator as early as next year, with the anticipated transition of the Electricity Control Board (ECB) to the Namibia Energy Regulatory Authority (NERA).
At the moment the ECB’s mandate is to regulate electricity generation, transmission, distribution, supply, import and export in Namibia.
“For the ECB to have regulatory oversight, the laws had to be reformed, thus birthing the crafting of the Namibia Energy Regulatory Authority (NERA). The transition to NERA has taken some time, as everyone knows, there is nothing we can do in the absence of an enabling legal framework. The hold-up is mainly on the Electricity Bill and NERA Bills that are still with the legal drafters, but we are making some good progress and if everything goes [according] to plan, we shall be transitioning from ECB to NERA in 2024,” ECB Chief Executive Officer Robert Kahimise told The Brief.
“With the establishment of NERA as energy regulator, we have made all provisions to allow the new legislative body to regulate hydrocarbons, which is oil and gas, the infrastructure to be used. While the new Electricity Bill sees the introduction of the licensing for the storage of electricity; system operator; and market operator,” he said.
This comes as Namibia has seen the emergence of the green hydrogen and oil and gas sectors in the absence of well-crafted regulatory frameworks.
“On hydrogen where people are worried about, the ECB can even use the current legal framework on the Electricity Act, to regulate the renewable energy plants that will be used to power the hydrogen projects, and such laws are already in place. Control can be possible at the moment since we are looking at two green hydrogen pilot projects being implemented,” Kahimise said.
“However, on the overall sector extending to oil, gas and green hydrogen products, it might take some time, as policymakers are putting in place legal frameworks to ensure that by the time these pilot plants start producing hydrogen, the industry is ready,” he said.
Already the Namibian government has signed a Feasibility and Implementation Agreement with Hyphen Hydrogen Energy in May, paving the way to begin groundwork for a US$10 billion (N$187 billion) green hydrogen project.
Namibia has also recorded notable oil discoveries include the Graff-1X, Venus-1X, Jonker-1X, and Lesedi-1X, the product of partnerships involving major industry players such as Shell, Qatar Energy, Total, and Impact, in conjunction with NAMCOR.
