Skip to main content Accessibility help
×
Home
  • Print publication year: 2019
  • Online publication date: November 2019

5 - Harnessing Africa’s Energy Resources through Regional Infrastructure Projects

from Part I - Mitigating Institutional Voids by Design

Summary

Regional electricity systems, or power pools, can reduce the cost of providing electricity and improve system reliability through co-ordinated use of energy resources. Realizing these benefits requires a strong political will to co-operate combined with careful market design supported by technical, economic and institutional analysis. In this chapter, we present some of the unique motivations for power pools in Africa, describe the current status of pooling arrangements on the continent, study in detail the regulation of transmission in the Southern African Power Pool (SAPP) and identify some improvements to the present rules. Our approach combines mathematical modelling of the SAPP system using linear programming with analysis of regional institutions and their role in promoting efficient investments as well as efficient market behaviour. We have investigated several market-design questions, such as how to identify, implement and allocate costs for necessary regional transmission investments. Our regulatory proposals developed for the SAPP could be feasible options for other regional systems in Africa that face similar institutional and technical challenges in developing regional infrastructure.

AfDB (African Development Bank). (2010). Programme for infrastructure development in Africa – Interconnecting, integrating, and transforming a continent. Tunis: AfDB.
Africa Greenco. (2017). Feasibility study. London: Africa Greenco.
Briceño-Garmendia, C. and Shkaratan, M. (2011). Power tariffs: Caught between cost recovery and affordability. Policy Research Working Paper: no. WPS 5904. World Bank. https://openknowledge.worldbank.org/handle/10986/3671
Castellano, A. et al. (2015). Brighter Africa: The growth potential of the sub-Saharan electricity sector. New York City, NY: McKinsey & Co.
Chikova, A. (2009). Energy trading in the Southern African Power Pool. Presentation March 2009. Durban: Southern African Power Pool.
EAPP (Eastern African Power Pool). (2016). The Eastern Africa Power Pool Independent Regulatory Board (EAPP-IRB) establishment. Eastern African Power Pool. http://eappool.org/independent-regulatory-board/
Eberhard, A., Rosnes, O., Shkaratan, M. and Vennemo, H. (2011). Africa’s power infrastructure: Investment, integration, efficiency. Technical Report, Washington, DC: The World Bank.
Enterprise Surveys. (2017). Infrastructure. Enterprise Surveys. Washington, DC: The World Bank. www.enterprisesurveys.org/data/exploretopics/infrastructure
Florence School of Regulation. (2005). A study on the Inter-TSO compensation mechanism. Florence: European University Institute. Energy Regulators. www.energyregulators.eu/portal/pls/portal/docs/1/19428531.PDF
Global Energy Observatory. (n.d.) http://GlobalEnergyObservatory.org/
Gutman, J., Sy, A. and Chattopadhyay, S. (2015). Financing African infrastructure: Can the world deliver? Washington, DC: Brookings Institution.
Hogan, W. (2011). Transmission benefits and cost allocation. Cambridge, MA: Harvard University. https://sites.hks.harvard.edu/fs/whogan/Hogan_Trans_Cost_053111.pdf.
Horvei, T. (2012). ZIZABONA transmission project. Presentation to Investors Roundtable Meeting, Swakopmund, 12 July.
Hussain, M. Z. (2015). Mozambique – Energy sector policy note. Washington, DC: The World Bank. http://documents.worldbank.org/curated/en/135711468180536987/Mozambique-Energy-sector-policy-note.
IEA (International Energy Agency). (2002). Security of supply in electricity markets: Evidence and policy issues. Technical Report. Paris: OECD/IEA, Paris.
IEA (International Energy Agency). (2013). Key world energy statistics. Paris: OECD/IEA.
IEA (International Energy Agency). (2016a). World energy outlook 2016. Paris: OECD/IEA.
IEA (International Energy Agency). (2016b). World energy statistics and balances. Paris: OECD/IEA.
Magombo, G., Kügel, L., and Julião, F. (2008). Survey on the status of policy, institutional and regulatory frameworks of the electricity supply industry (ESI) in the Southern African Development Community (SADC) region. Technical Report. Submitted by AECOM International Development to USAID/Southern Africa. Gaborone, Botswana: USAID.
MIT (Massachusetts Institute of Technology). (2011). Transmission expansion. In MIT Study on the Future of the Electric Grid. Cambridge, MA: Massachusetts Institute of Technology, pp. 77108. http://mitei.mit.edu/system/files/Electric_Grid_Full_Report.pdf.
Miketa, A. and Merven, B. (2013a). West African Power Pool: Planning and prospects for renewable energy. Abu Dhabi: International Renewable Energy Agency.
Miketa, A. and Merven, B. (2013b). Southern African Power Pool: Planning and prospects for renewable energy. Abu Dhabi: International Renewable Energy Agency.
Musaba, L. (2010). The Southern African Power Pool. Harare: Southern African Power Pool.
Ndhlukula, K., Radojičić, T., and Mangwengwende, S. (2015). Analysis of infrastructure for renewable power in Eastern and Southern Africa. Technical Report. Abu Dhabi: International Renewable Energy Agency.
NEPAD (New Partnership for Africa’s Development). (2017). Batoka Gorge Hydro Electric Scheme: Zambezi River in Zambia and Zimbabwe. Project Information Memorandum. New Partnership for Africa’s Development. www.nepad.org/publication/batoka-gorge-hydro-electric-scheme-zambezi-river-zambia-and-zimbabwe.
Nexant. (2007). SAPP Regional Generation and Transmission Expansion Plan Study. Draft final report, Main Report, Volume 2, submitted to SAPP Coordination Center. Harare: Southern African Power Pool.
Olmos, L. (2013). Regional markets. In Pérez-Arriaga, Ignacio (Ed.), Regulation of the power sector. 1st ed. London: Springer.
Pérez-Arriaga, I. and Smeers, Y. (2003). Guidelines on tariff setting. In Lévêque, F. (ed.), Transport pricing of electricity networks. Boston: Kluwer Academic Publishers.
Platts. (2010). UDI world electric power plants data base. Washington, DC: Platts.
PR Newswire. (2016, 21 January). Further delays with Inga III hydroelectric project in DRC. PR Newswire. www.prnewswire.com/news-releases/further-delays-withinga-iii-hydroelectric-project-in-drc-300207721.html
Rivier, M., Pérez-Arriaga, I., and Olmos, L. (2013). Electricity transmission. In Pérez-Arriaga, Ignacio J. (Ed.), Regulation of the power sector. 1st edition. London: Springer.
Rose, A. (2017). Improving the performance of regional electricity markets in developing countries: The case of the Southern African Power Pool. Doctoral dissertation, Massachusetts Institute of Technology. Cambridge, MA: MIT.
Rosnes, O., Vennemo, H., and Pöyry, E. (2009). Powering up: Costing power infrastructure spending needs in sub-Saharan Africa. Technical report, AICD Background Paper 5, Africa Region, Washington, DC: The World Bank.
SNC Lavalin International Inc. and Parsons Brinckerhoff. (2011). Regional power system master plan and grid code study. East African Power Pool (EAPP) and East African Community (EAC).
SADC. (2006). Revised inter-governmental memorandum of understanding. Gaborone: Southern African Development Community (SADC).
SAPP. (2005). SAPP priority projects for investor consideration and funding. Presentation to the SAPP Executive Committee, 21 November. Harare: Southern African Power Pool (SAPP).
SAPP. (2012). SAPP 2012 annual report. Harare: Southern African Power Pool (SAPP).
SAPP. (2014). Draft terms of reference for cooperation between Southern African Power Pool (SAPP) and United States Aid Agency (USAID) and the World Bank regarding assistance to SAPP in establishing project management capability. Harare: Southern African Power Pool (SAPP).
SAPP. (2015). SAPP 2015 annual report. Harare: Southern African Power Pool (SAPP). www.sapp.co.zw/annual-reports.
SAPP. (2017). Vision and objectives. SAPP. Harare: Southern African Power Pool (SAPP). www.sapp.co.zw/
Tractebel Engineering. (2011). Final report volume 4: Executive summary. In Update of the ECOWAS revised master plan for the generation and transmission of electrical energy. Accra: Economic Community of West African States.
UN ECA. (2013). Assessing regional integration in Africa (ARIA VI): Harmonizing policies to transform the trading environment. Addis Ababa: United Nations Economic Commission for Africa (UN ECA). http://libguides.uneca.org/content.php?pid=675909.
von der Fehr, Nils-Henrik M., Meeus, L., Azevedo, I., He, X., Olmos, L., and Glachant, J.-M. (2013). Cost benefit analysis in the context of the energy infrastructure package. Florence School of Regulation. Florence: European University Institute.
WAPP (West African Power Pool). (2005). Articles of agreement of the West African Power Pool organization and functions. Accra: West African Power Pool.
World Bank. (2008). Building regional power pools: A toolkit. Technical Report. Washington, DC: The World Bank.
World Bank. (2015). World development indicators: Electricity production, sources, and access. Washington, DC: The World Bank.
World Bank. (2016). Investment in energy with private participation (current US$). Private participation in infrastructure database. Washington, DC: The World Bank.
World Bank. (2017a). Linking up: Public-private partnerships in power transmission in Africa. Washington, DC: The World Bank.
World Bank. (2017b). Population, total. Washington, DC: The World Bank. https://data.worldbank.org/indicator/sp.pop.totl
World Bank. (2017c). Electric power consumption (kWh per capita). Washington, DC: The World Bank. https://data.worldbank.org/indicator/EG.USE.ELEC.KH.PC
WEC. (2004). World energy resources: 2004 survey. London: World Energy Council (WEC).
WEC. (2013). World energy resources: 2013 survey. London: World Energy Council (WEC).
WEC. (2015). The world is getting ever more connected. World Energy Focus 15 (September). London: World Energy Council (WEC).
Zhou, P. (2012). Regional infrastructure development master plan: Energy sector master plan. Technical Report August.Gaborone: Southern African Development Community Secretariat.