Modified Single Buyer Market Model (MSB)

The Modified Single Buyer (MSB) model, implemented in September 2019 in the Namibian Electricity Supply Industry, aims to reduce dependency on external electricity imports. It allows certain electricity consumers and Independent Power Producers (IPPs) to directly transact for up to 30% of their electricity requirements, promoting local generation and decreasing costs. Notably, as of March 2023, IPPs have contributed 10% of the nation's electricity needs, with NamPower serving as the designated last-resort supplier under the MSB, ensuring continuous electricity provision for the country.

(Then)
Single Buyer Model (SBM):
• Description: One entity, often a utility or a designated body, buys all generated electricity.
• Characteristic: Limited participation of Independent Power Producers (IPPs).
• Representation: Centralized purchasing from a single buyer.

(Now)
Modified Single Buyer Model (MSB):
• Description: Retains a central buyer but allows certain consumers and IPPs to directly transact for a portion of their electricity needs, typically up to 30%.
• Characteristic: Provides flexibility by enabling direct transactions between some consumers and IPPs.
• Representation: Balances centralised purchasing with direct transactions, fostering market diversity.