Official Launch NamPower Corporate Strategy & Business Plan 2019 - 2023 Presented by Kahenge S Haulofu: Managing Director 24 July 2019
DISCUSSION POINTS • Presentation Objectives • Reflecting on 2014 – 2018 Corporate Strategy • New Corporate Strategy & Business Plan 2019 – 2023 • Project Update • Progress Made Thus Far • Conclusion
Objectives for today’s engagement Provide feedback / share with you, our stakeholders on the outcome of our Strategy development process Create awareness on NamPower strategic direction for the next five years Build and maintain positive relationships which will advance the implementation of our Strategy going forward.
Reflecting on 2014 – 2018 Corporate Strategy & Business Plan NamPower follows a five-year strategic planning cycle. Thus the 2014 – 2018 Corporate Strategy and Business Plan ended on 30 June 2018. The Strategy served us well, as it motivated us to take responsive actions and make collective efforts in “Ensuring Security of Supply” through power supply and demand constraints, experienced locally and regionally. However, the Electricity Supply Industry is ever-evolving and we had to adjust our strategies to remain relevant, resulting in some shortfalls as well as achievements against set goals and objectives.
Reflecting on 2014 – 2018 Corporate Strategy & Business Plan cont … Strengthened • built 810km of transmission lines resulting in 11,673km length of transmission network transmission network Increased installed local • Local installed capacity in Namibia increased from 375.5MW to 606 MW generation capacity Collaborated with • 117MW from IPPs connected private sector to deliver • 129MW from IPPs committed renewable capacity Ensured continuous • Ensured continuous supply and avoided load shedding during the supply supply during a volatile constraints environment • debt to equity ratio of 9:91. Maintained a strong • maintained a local investment grade (Zaf) rating financial position and • debt service cover ratio above 4 investment grade rating
New 5-year Corporate Strategy and Business Plan
2019 – 2023 Corporate Strategy & Business Plan Last year we started the process of developing a new five- year Corporate Strategy and Business Plan ( 2019 – 2023) with assistance from Price Waterhouse Coopers (PwC). It was an extensive and consultative exercise which involved internal and external stakeholders. The Corporate Strategy and Business Plan ( 2019 – 2023) has been completed and will guide and provide strategic direction for the next five years.
Strategic Issues considered in the development of our Strategy Market Technology • Trends Global/Regional/Local • Solar PV IPPs • • Wind • Competitors • Energy Storage • Partners • Smart grids • Regional trade • Thermal Asset • Modified Single Buyer Market Model Market • Behind the meter solutions base Customer • Customer behavior Finance Customer segmentation • • Financial position • Potential new customers Technolo • Tariff and Trading Customer gy • Self generation • Investment Options • “Prosumers” • Options NamPower Policy/Regulation • National energy policy • Internal capabilities Climate Regulati NIRP • • Technical capabilities ange on • NDP 5 and HPP Management capabilities • Public Procurement Act • New capabilities • PPP Act • Succession planning • Supplier of last resort [MSB] Finance Interna Asset base Namibian Economy • Transmission network • Expected GDP • Hydro-power • Public spending • Coal • HFO diesel
Challenges and opportunities • Advancement of renewable energy Challenges technology and digital solutions • Advancements of regional power markets • Intermittency of renewables • Energy storage • Limited availability of government • Diversified supply mix funding • Distributed generation solutions to • Large dependency on power reduce losses in the overall imports system • Alignment of supply mix to • New sources of funding for changing demand profile generation projects • Challenges in the full execution of • Partnerships to implement new the Public Procurement Act products and services • Timely alignment of processes and functions towards the role of the modified single buyer model Opportunities
NamPower Strategic Direction / Map “To be the leading electricity Vision service company of choice in SADC” “To provide the electricity needs of our customers, fulfil the aspirations of our staff and satisfy Mission the expectations of our stakeholders in a competitive and evolving environment” Strategic Unlocking the value Ensuring security Optimizing financial Driving Pillars of electricity sector of supply sustainability organisational collaboration & operational excellence Customer focus; Integrity; Teamwork; Accountability; Empowerment; Values Health, Safety, Environment
Pillar 1: Unlocking the value of electricity sector collaboration Unlock the Ensuring Optimise Driving value of security financial organisational electricity of supply sustainability & operational sector excellence collaboration Support the development of Support the acceleration of the electricity industry and electrification the economy Engage with communities, Collaborate with stakeholders suppliers and the private on the developments in the sector to design solutions electricity market to foster a for accelerated conducive environment for electrification across economic growth Namibia Unlocking the value of electricity sector collaboration Develop new products Deliver project and services portfolio Identify and engage with Engage with investors, existing and potential lenders, project developers customers to understand their and government to drive needs and requirements for the timely delivery of our new products and services project portfolio
Pillar 2: Ensuring security of Unlock the Ensuring Optimise Driving supply value of security financial organisational electricity of supply sustainability & operational sector excellence collaboration Deliver a least cost Strengthen Namibia’s electricity supply mix transmission network Invest in a project mix and Improve network reliability technologies that result in through development of key the least cost electricity to ` projects to cater for future customers generation capacity and market demand Ensuring security of Leverage regional market Prepare business supply opportunities units for a change in Leverage trading the local market opportunities to complement model and optimise local supply mix Prepare business units for the changing market model to expand capabilities and drive market alignment Support government in Increase local generation capacity the development of through the implementation of strategic projects strategic projects
Pillar 3: Optimizing financial sustainability Unlock the Ensuring Optimise Driving value of security financial organisational electricity of supply sustainability & operational sector excellence collaboration Implement an investment Form financial and framework to align to market technological partnerships requirements Identify and collaborate Consistently implement an with technical and financial NamPow er xxx Partner investment framework to partners to leverage guide the investment and capabilities and drive financing of our project competitiveness portfolio Optimizing financial sustainability Support the development Leverage new sources of a sustainable electricity of funding market Pursue alternative sources Support the development of of funding for the delivery an electricity market and tariff of our project portfolio design to maintain electricity market sustainability
Pillar 4: Driving organizational & operational excellence Unlock the Ensuring Optimise Driving value of security financial organisational electricity of supply sustainability & operational sector excellence collaboration Build an ethical, engaging Achieve and retain top and high performance employer status culture Recruit and retain top Align strategy talent to prepare a implementation with leadership pipeline and change in behaviours to rank NamPower as a top transform the corporate employer in Namibia culture Driving organizational & operational excellence Establish a business Develop additional development and innovation capabilities to meet the function new market requirements Drive business innovation for Secure the new skills and new products and services; capabilities required in the and operational excellence new market environment
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