Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-vdxz6 Total loading time: 0 Render date: 2024-11-24T22:31:11.210Z Has data issue: false hasContentIssue false

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

from Part I - Mitigating Institutional Voids by Design

Published online by Cambridge University Press:  14 November 2019

Nuno Gil
Affiliation:
University of Manchester
Anne Stafford
Affiliation:
University of Manchester
Innocent Musonda
Affiliation:
University of Johannesburg
Get access

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.

Type
Chapter
Information
Duality by Design
The Global Race to Build Africa's Infrastructure
, pp. 130 - 160
Publisher: Cambridge University Press
Print publication year: 2019

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

AfDB (African Development Bank). (2010). Programme for infrastructure development in Africa – Interconnecting, integrating, and transforming a continent. Tunis: AfDB.Google Scholar
Africa Greenco. (2017). Feasibility study. London: Africa Greenco.Google Scholar
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/10986/3671Google Scholar
Castellano, A. et al. (2015). Brighter Africa: The growth potential of the sub-Saharan electricity sector. New York City, NY: McKinsey & Co.Google Scholar
Chikova, A. (2009). Energy trading in the Southern African Power Pool. Presentation March 2009. Durban: Southern African Power Pool.Google Scholar
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/Google Scholar
Eberhard, A., Rosnes, O., Shkaratan, M. and Vennemo, H. (2011). Africa’s power infrastructure: Investment, integration, efficiency. Technical Report, Washington, DC: The World Bank.Google Scholar
Enterprise Surveys. (2017). Infrastructure. Enterprise Surveys. Washington, DC: The World Bank. www.enterprisesurveys.org/data/exploretopics/infrastructureGoogle Scholar
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.PDFGoogle Scholar
Global Energy Observatory. (n.d.) http://GlobalEnergyObservatory.org/Google Scholar
Gutman, J., Sy, A. and Chattopadhyay, S. (2015). Financing African infrastructure: Can the world deliver? Washington, DC: Brookings Institution.Google Scholar
Hogan, W. (2011). Transmission benefits and cost allocation. Cambridge, MA: Harvard University. https://sites.hks.harvard.edu/fs/whogan/Hogan_Trans_Cost_053111.pdf.Google Scholar
Horvei, T. (2012). ZIZABONA transmission project. Presentation to Investors Roundtable Meeting, Swakopmund, 12 July.Google Scholar
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.Google Scholar
IEA (International Energy Agency). (2002). Security of supply in electricity markets: Evidence and policy issues. Technical Report. Paris: OECD/IEA, Paris.Google Scholar
IEA (International Energy Agency). (2013). Key world energy statistics. Paris: OECD/IEA.Google Scholar
IEA (International Energy Agency). (2016a). World energy outlook 2016. Paris: OECD/IEA.Google Scholar
IEA (International Energy Agency). (2016b). World energy statistics and balances. Paris: OECD/IEA.Google Scholar
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.Google Scholar
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.Google Scholar
Miketa, A. and Merven, B. (2013a). West African Power Pool: Planning and prospects for renewable energy. Abu Dhabi: International Renewable Energy Agency.Google Scholar
Miketa, A. and Merven, B. (2013b). Southern African Power Pool: Planning and prospects for renewable energy. Abu Dhabi: International Renewable Energy Agency.Google Scholar
Musaba, L. (2010). The Southern African Power Pool. Harare: Southern African Power Pool.Google Scholar
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.Google Scholar
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.Google Scholar
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.Google Scholar
Olmos, L. (2013). Regional markets. In Pérez-Arriaga, Ignacio (Ed.), Regulation of the power sector. 1st ed. London: Springer.Google Scholar
Pérez-Arriaga, I. and Smeers, Y. (2003). Guidelines on tariff setting. In Lévêque, F. (ed.), Transport pricing of electricity networks. Boston: Kluwer Academic Publishers.Google Scholar
Platts. (2010). UDI world electric power plants data base. Washington, DC: Platts.Google Scholar
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.htmlGoogle Scholar
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.Google Scholar
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.Google Scholar
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.Google Scholar
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).Google Scholar
SADC. (2006). Revised inter-governmental memorandum of understanding. Gaborone: Southern African Development Community (SADC).Google Scholar
SAPP. (2005). SAPP priority projects for investor consideration and funding. Presentation to the SAPP Executive Committee, 21 November. Harare: Southern African Power Pool (SAPP).Google Scholar
SAPP. (2012). SAPP 2012 annual report. Harare: Southern African Power Pool (SAPP).Google Scholar
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).Google Scholar
SAPP. (2015). SAPP 2015 annual report. Harare: Southern African Power Pool (SAPP). www.sapp.co.zw/annual-reports.Google Scholar
SAPP. (2017). Vision and objectives. SAPP. Harare: Southern African Power Pool (SAPP). www.sapp.co.zw/Google Scholar
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.Google Scholar
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.Google Scholar
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.Google Scholar
WAPP (West African Power Pool). (2005). Articles of agreement of the West African Power Pool organization and functions. Accra: West African Power Pool.Google Scholar
World Bank. (2008). Building regional power pools: A toolkit. Technical Report. Washington, DC: The World Bank.Google Scholar
World Bank. (2015). World development indicators: Electricity production, sources, and access. Washington, DC: The World Bank.Google Scholar
World Bank. (2016). Investment in energy with private participation (current US$). Private participation in infrastructure database. Washington, DC: The World Bank.Google Scholar
World Bank. (2017a). Linking up: Public-private partnerships in power transmission in Africa. Washington, DC: The World Bank.Google Scholar
World Bank. (2017b). Population, total. Washington, DC: The World Bank. https://data.worldbank.org/indicator/sp.pop.totlGoogle Scholar
World Bank. (2017c). Electric power consumption (kWh per capita). Washington, DC: The World Bank. https://data.worldbank.org/indicator/EG.USE.ELEC.KH.PCGoogle Scholar
WEC. (2004). World energy resources: 2004 survey. London: World Energy Council (WEC).Google Scholar
WEC. (2013). World energy resources: 2013 survey. London: World Energy Council (WEC).Google Scholar
WEC. (2015). The world is getting ever more connected. World Energy Focus 15 (September). London: World Energy Council (WEC).Google Scholar
Zhou, P. (2012). Regional infrastructure development master plan: Energy sector master plan. Technical Report August.Gaborone: Southern African Development Community Secretariat.Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×