The law on generating and trading in power

Generating electricity by means of solar panels is a natural processing method which has proven most successful in Namibia due to the long, hot summer days.

The popularity of solar panels in Namibia has become extensive and as such the laws and rules of generating and/or trading electricity are regulated under the Electricity Act 4 of 2007 and its regulations.

In terms of Section 17(1) of the Act, no person may generate, trade, transmit, supply, distribute, import or export electricity, unless such person holds a valid licence. This provision appears to limit a person to own consumption, subject to the amount of electricity you intend to generate and/or distribute.

In terms of section 18(1) of the Act, a person is exempted from holding a licence for the generation and/or distribution of electricity if:

• The plant’s capacity is less than 500 kVA.
• Generating of electricity is for own consumption by the person in control of such plant and on premises owned or occupied by that person.
• It is intended as a standby supply for own consumption by the person in control of the plant and on the premises owned or occupied by such person.
• Distribution of electricity by a person who installs a distribution network for own consumption on premises owned or occupied by that person, where the distribution demand is less than 500kVA.
• The Minister, on recommendation of the Board, exempts a person from holding a licence.

It is clear from section 18(1) that small-scale electricity generation and/or distribution can be exempted from holding licences, without the requirement to apply for such exemption.

The generating and distribution of electricity for own consumption without a licence must be regulated and as such conditions do still apply to persons who are exempted from holding a licence.

Namibia has implemented a net metering mechanism for the generation of electricity from solar panels to allow consumers who generate some or all of their own electricity to use that electricity at any time, instead of when it is generated.

The Government Gazette No. 6173 noted the objective of net metering including generation of additional power into the national grid, reducing the investment requirements of licensees and conventional independent power producers. Net metering consumers must be exempted from the requirement under the Act to obtain a generation licence.

In order to trade electricity, individuals must apply for that specific licence. The trading of electricity is regulated in terms of Section 19 of the Act.
The Board may grant licences for the trading of electricity, subject to their conditions and approval of the Minister thereof, to any persons.



Saraphina Paulus
[email protected]