Public Disclosure Authorized Public Disclosure Authorized The Potential of Regional Power Sector Integration Cahora Bassa | Generation Case Study Public Disclosure Authorized Submitted to ESMAP by: Economic Consulting Associates August 2009 Public Disclosure Authorized Economic Consulting Associates Limited 41 Lonsdale Road, London NW6 6RA, UK tel: +44 20 7604 4545, fax: +44 20 7604 4547 email:
[email protected] Contents Contents Abbreviations and acronyms iii Preface v 1 Executive summary 1 1.1 Motivations/objectives for trade 1 1.2 The trade solution put in place 1 1.3 Current status and future plans 1 2 Context for trade 3 2.1 Economic and political context 3 2.2 Supply options 4 2.3 Demand 5 2.4 Energy tariffs 5 3 History of scheme 7 3.1 Overview including timeline/chronology 7 3.2 Project concept, objectives, and development 9 3.3 Feasibility studies done 11 3.4 Assets built and planned 12 3.5 Interconnections and electricity trade 13 3.6 Environmental and social issues 14 4 Institutional arrangements 18 4.1 Governance structure 18 4.2 Role of national governments and regional institutions 18 4.3 Regulatory agencies 19 4.4 Role of outside agencies 19 5 Contractual, financial and pricing arrangements 21 5.1 Contracts 21 Cahora Bassa Case Study REGIONAL POWER SECTOR INTEGRATION: LESSONS FROM GLOBAL CASE STUDIES AND A LITERATURE REVIEW i ESMAP Briefing Note 004/10 | June 2010 Contents 5.2 Ownership and finance 22 5.3 Pricing arrangements 24 6 Future Plans 27 Bibliography 28 Tables and figures Tables Table 1 Cahora Bassa Chronology