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Enhancing Cross-Border Power Projects in Southern Africa

Learn about challenges faced by PPP projects in the power sector in Southern Africa and measures to address them. Explore the role of the Southern African Power Pool in advancing cross-border initiatives.

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Enhancing Cross-Border Power Projects in Southern Africa

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  1. SOUTHERN AFRICAN POWER POOL Regional and Sub-Regional Issues PPP Power Projects in Southern Africa Addis Ababa, ETHIOPIA 30 June – 1 July 2011

  2. Introduction to the SAPP Installed Capacity & Generation Mix Challenges to Cross-Border PPP Projects in the Power Sector Measures and Mechanisms to Address the Challenges Role of the Power Pool • KEY ISSUES

  3. INTRODUCTION TO THE SAPP DR Congo Tanzania Angola Malawi Zambia Zimbabwe Namibia Mozambique Botswana Swaziland South Africa Lesotho 1.1 Geographic • 12 Countries • 230 Million people • Average Electricity growth rate 3% p.a. • For South Africa demand growth was 4.9% in 2007 and for whole region 4.6%.

  4. 1.2 Membership CEC and LHPC from Zambia are the new Members of SAPP

  5. INSTALLED CAPACITY & GENERATION MIX 2.1 Installed Capacity

  6. 74.3% Coal 20.1% Hydro 4.0% Nuclear 1.6% Gas/Diesel 2.2 Generation Mix & Contributions – Year 2011

  7. CHALLENGES TO CROSS-BORDER PPP PROJECTS • Lack of enabling environment for PPP • Government policies yet to be harmonized • Legal & regulatory frameworks inconsistent • Incomplete power sector reforms • National Utilities still enjoy monopoly • PPP concepts not yet understood • Policies on PPPs not yet developed in most countries

  8. CHALLENGES TO CROSS-BORDER PPP PROJECTS • Low Electricity Tariffs – Inadequate and unsustainable levels with attendant challenges and NOT able to provide right signals for: • New Investments from the Private Sector • Energy conservation, efficiency & substitution practices by customers

  9. Example of Cross-Border Transmission Projects DRC 2013: ZIZABONA -220/330 kV Tanzania 2013: Mozambique Malawi Malawi Angola 2014: Zambia - Tanzania - 400 kV Zambia 2015:DRC - Angola – 400 kV Zimbabwe Namibia Mozambique 2016: MOZAMBIQUE BACKBONE -RSA Botswana 2017: Namibia – Angola Swaziland Lesotho South Africa

  10. MEASURES & MECHANISMS TO ADDRESS THE CHALLENGES • Policy choices to address challenges should be developed and need to recognize: • Need for financial viability – implement the policy of cost reflective/sustainable tariffs • Develop appropriate policy frameworks for PPPs • Complete power sector reforms in line with policy aspirations: Improve governance & operations • Tariffs: Regulators need to regulate towards cost reflectivity to allow existing utilities to recover operational costs and contribute to capital costs

  11. ROLE OF THE POWER POOL • Assist the region to harmonize PPPs policies on cross-border projects • Assist the region with the development of technical standards and the pool grid code • Develop transmission wheeling charges and wheeling model for all cross-border projects • Assist with the standardization of wheeling and power purchase agreements between parties • Organize workshops on PPPs and concepts

  12. THANK YOU

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