For a new Namibian independent power producer (IPP) or supplier working through Modified Single Buyer (MSB) registration and then stepping into Southern African Power Pool (SAPP) trading, specialist software solutions provider Enerweb’s fastest “time-to-participation” path employs a preconfigured software stack, says Enerweb chief innovation officer Gerard Van Harmelen.

He notes that, with Namibia embarking on an energy transition characterised by its shift from an import-dependent system to a diversified, renewables-rich energy mix, the next decade will see an increase in solar PV and wind projects, complemented by battery energy storage systems, as well as more IPP-driven wheeling projects, and greater regional integration through SAPP.

This transition will be facilitated by the MSB model, which was introduced in 2019, and enables IPPs to sell directly to eligible large customers as well as export into SAPP, which, in turn, creates a pipeline of private investment in both utility-scale and embedded generation.

However, while this means that the Namibian energy sector is attracting significant interest, “digital market and trading platforms – like those Enerweb provides – will be critical to orchestrating this more complex, multi-actor system efficiently and transparently”.

Consequently, Enerweb’s stack mirrors the SAPP’s and MSB’s market access workflow and comprises multiple modules within its Energy Trading and Risk Management (ETRM) solution, ranging from Deal Capture, Forecasting and Scheduling, to Settlements and Invoicing. In addition, a set of advanced analytics modules is available to perform energy allocation optimisations, from Monte Carlo simulations that generate numerical risk metrics, to performing advanced machine learning forecasting algorithms.

The Forecasting module, for example, produces short-term generation and offtake forecasts that, in turn, feed into the MSB’s nomination and scheduling processes, and could potentially be used for the SAPP’s day-ahead and intra-day markets.

The module stack includes a Scheduling module, which generates MSB-compliant hourly or period-based nominations, while the Trade Optimiser module allocates IPP output across eligible customers and trading products, thereby “turning tariffs and MSB rules into executable wheeling schedules”.

Van Harmelen says that the last two modules in the stack are the Meter Data Management module – which automates, validates and stores interval metering data from State-owned power utility NamPower and other distribution utilities – and the Settlements module, which “calculates charges, credits and true-ups consistent with contractual terms and market rules, thus shortening the trade-to-cash cycle”.

This stack effectively provides a “starter kit” for MSB-level trading that can later scale into full SAPP participation without changing platforms, says Van Harmelen.

Moreover, because Enerweb’s ETRM internal transactional data model was built “from the outset” to accommodate many and varied relationships between generators, traders, customers and products, owing to those accommodations being required for energy sharing across the SAPP markets, the company is positioned to capitalise on emerging wheeling schemes in Southern Africa.

Van Harmelen notes that the Trade Optimiser module can simultaneously support one-to-one contracts between a single IPP and a single end-user, whether it is a mine or a municipality; one-to-many contracts between a single IPP and multiple offtakers using different tariffs and products; and pooled portfolios comprising multiple IPPs contributing to municipal or corporate portfolios, with allocation rules and loss factors applied in line with, for example, MSB or local wheeling rules.

“Because this is handled in the underlying contract, portfolio and product structures, Enerweb does not need to re-architect when a Namibian municipality moves from simple one-to-one wheeling to more sophisticated portfolio or pool constructs – it’s a configuration and rules exercise, not a rebuild.”

In the long term, Enerweb’s focus in Namibia is on projects that will “turn policy and market design into day-to-day operational systems.”

The company intends to do this by supporting the MSB office and NamPower with participant- and, if needed, operator-grade tools that ease processes around contract management, nominations, metering and settlement.

Further, by equipping Namibian IPPs, traders and large customers with modules like the ETRM’s Trade Optimiser, and by leveraging analytics solutions so that these stakeholders can participate effectively in both the MSB market and SAPP regional markets, Enerweb’s solutions will underpin and facilitate effective electricity trade within Namibia and the SAPP.

The company hopes to provide utility analytics, power trading as well as meter data management system capabilities to regional electricity distributors and municipalities as and when they implement wheeling, portfolio structure and smart-grid initiatives.

“These are not ‘one-off IT projects’ but part of a multi-year market and product roadmap, building a digital backbone that supports Namibia’s transition from a predominantly single-buyer, import-heavy system to a competitive, regionally connected power market,” Van Harmelen asserts, concluding that Enerweb can be instrumental in this journey.