Namibia has extended its moratorium on new electricity generation licences for export projects until January 2029, citing ongoing transmission constraints on South Africa’s electricity network that continue to limit power exports into the Southern African Power Pool (SAPP).
The extension was approved by the Minister of Industries, Mines and Energy and will remain in effect until 5 January 2029, or until the transmission bottlenecks are resolved, whichever occurs first.
Electricity Control Board (ECB) Head of Stakeholder Engagement and Communication, Nelson Ashipala, said that while Namibia’s Modified Single Buyer (MSB) market framework allows independent power producers (IPPs) to develop generation projects for export, the limited capacity of South Africa’s transmission system prevents additional electricity from being transmitted into the regional grid.
According to Ashipala, approving more export licences under the current circumstances would create regulatory commitments that the existing transmission infrastructure is unable to support.
“The extension of the moratorium is a responsible and prudent regulatory measure aimed at safeguarding the integrity of the Electricity Supply Industry while protecting the interests of both existing and prospective licence holders,” he said.
The ECB, together with NamPower, is currently assessing the available transmission capacity and will not process new export licence applications until the review is completed or sufficient transmission capacity becomes available.
Despite the moratorium, certain renewable energy developments may still qualify for exemptions. These include projects incorporating Battery Energy Storage Systems (BESS) to enable electricity exports during night-time hours, as well as independent power producers participating in transmission infrastructure upgrades. Any exemptions will require confirmation from South Africa’s National Transmission Company.
Ashipala emphasised that the moratorium should not be viewed as a barrier to investment but rather as a necessary response to existing infrastructure limitations. He reaffirmed the ECB’s commitment to supporting domestic electricity generation and encouraging investment in renewable energy, battery storage, and hybrid power projects that enhance Namibia’s long-term energy security and strengthen the country’s electricity sector.
