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SADC Today 15.1 English:Layout 1 SADC TODAY Vol. 15 No 1 December 2012 Energy Sector Plan targets surplus, sets priorities by Joseph Ngwawi THE SADC region has suffered a shortage of The Plan identifies “hard” infrastructure electricity since 2007 as demand exceeds sup- projects that include the planned increase in ply, and the expectation is that this energy gap electricity generation and transmission; refiner- will be addressed by 2014. However, the imple- ies, storage facilities and pipelines for petro- mentation of projects can lag behind their leum and gas; and transport facilities for coal POLICY 3 planned dates due to a lack of funding and distribution and exports. other constraints. The plan for the energy sector has identified ENERGY 4 SADC is now taking longer term measures 73 power generation projects to increase gen- AFRICAN UNION 5 to address the energy deficit and ensure self- eration from the current 56,000 megawatts sufficiency in energy generation and an end to (MW) and ensure that the projected demand of YEAR IN REVIEW 6 electricity shortages, through an ambitious En- 96,000 MW is surpassed by 2027. ergy Sector Plan that calls for the region to in- Prioritisation of the various projects was de- PEACE & SECURITY 7 crease power generation by more than 70 termined using a formula under which projects percent and invest at least US$170 billion over were rated according to their ability to impact ENERGY 8-9 the next 15 years. on the regional energy deficit. ENVIRONMENT 10 The Energy Sector Plan is part of the SADC Seven generation projects that scored above Regional Infrastructure Development Master 50 percent and with capacity greater than CLIMATE CHANGE 11 Plan approved by the 32nd Summit of SADC 1,000MW each were ranked as top priority. Heads of State and Government in Mozam- The seven projects alone are expected to REGIONAL INTEGRATION 12 bique in August. add about 26,000MW to the grid managed by the Southern African Power Pool (SAPP) – 65 PEACE & SECURITY 13 The Energy Sector Plan addresses four key strategic objectives: percent of new generation capacity planned be- COMMUNITY 14 1 ensuring energy security; tween 2013 and 2027 (see Table). 1 improving access to modern energy services; Highest priority is accorded to the EVENTS 15 1 tapping the abundant energy resources; Hidroeléctrica de Cahora Bassa (HCB) North and, Bank hydropower project in Mozambique. The HISTORY TODAY 16 1 achieving financial investment and environ- project is expected to add 1,245MW to the re- mental sustainability. gional power grid when completed in 2015. continued on page 2... CONTINUED FROM PAGE 1 Energy Sector Plan SAPP PRIORITY GENERATION PROJECTS (Capacity >1,000MW) Priority Country Project Name Capacity Technology Expected targets surplus, sets priorities Ranking (MW) Commissioning Date The other projects include The SADC Execu- 1 Mozambique HCB North Bank 1,245 Hydro 2015 Mphanda Nkuwa in Mozam- tive Secretary, Tomaz 2 Mozambique Mphanda Nkuwa 1,500 Hydro 2017 3 Zambia/Zimbabwe Batoka 1,600 Hydro 2022 bique, the Batoka Hydro Power Augusto Salomão, 4 DRC Inga 3 4,320 Hydro 2018 Station jointly developed by says in a message ac- 5 Zimbabwe Gokwe North 1,400 Coal 2017 Zimbabwe and Zambia, and the companying the Re- 6 South Africa New PF + FBC 6,250 Coal 2026 Inga 3 dam in the Democratic gional Infrastructure 7 South Africa Nuclear 9,600 Nuclear 2023 Republic of Congo (DRC). Master Plan that any Total 25,915 The Batoka project involves meaningful imple- Source SADC Regional Infrastructure Development Master Plan the construction of a dam and a mentation of the plan hydropower plant on the Zam- should accord priority to ad- tor. These include harmonised Five countries have inte- bezi River with a potential ca- dressing power shortfalls in the policies and increased coopera- grated the deployment of re- pacity of between 1,600 and region through the develop- tion in energy development newable energy in their rural 2,000MW of electricity to be ment and commissioning of and trading. Lack of align- energy/electrification agen- shared equally between Zambia power generation and trans- ment in regulatory policy cies. These are Botswana, and Zimbabwe. mission infrastructure. frameworks and tariff struc- Mozambique, Tanzania, Zam- The seven projects are ex- “The interconnection of An- tures can hamper investment bia and Zimbabwe. pected to cost a minimum of gola, Malawi and the United and financing, and poor proj- A key challenge to regional US$65 billion and a maximum Republic of Tanzania is neces- ect preparation can cause de- planning is to harmonise the of US$104 billion. sary to enable the migration of lays. fragmented policies and targets The next priority will be 18 these Member States to Operat- The master plan notes that set by the Member States. r other projects that scored above ing Members of the Southern apart from the existence of en- 50 percent according to the Mas- African Power Pool.” ergy policies and, to some lim- ter Plan formula but have ca- The grand total of all these ited extent, renewable energy Impact on island pacity of less than 1,000MW. projects to be implemented policy in all SADC Member These include the extension from 2015 to 2027 is estimated States, comprehensive renew- states of the Kariba South Power Sta- to cost in the region between able energy strategies and ac- THE ISLAND states of Mau- tion in Zimbabwe that should US$93 billion and US$212 bil- tion plans exist only in ritius and Seychelles are not add 300MW of new power by lion. Mauritius and South Africa. affected by improvements to 2016, the 800MW Kudu Gas In addition to the “hard” in- Botswana, Mauritius and the SAPP regional grid as they Power Station in Namibia to be frastructure projects, the master South Africa have put renew- are not connected to it. completed by 2016, and the plan has also identified 16 able energy electrification tar- They are already 100 per- 800MW Rumakali Hydro “soft” infrastructure issues that gets into their energy systems, cent or almost 100 percent Power Station in the United Re- need to be addressed before the while only Namibia and South connected to electricity and public of Tanzania, due for com- region can achieve self-suffi- Africa have renewable energy have access to modern energy pletion in 2018. ciency in the electricity sub-sec- regulatory frameworks. sources such as liquefied pe- The 18 projects are expected troleum gas for cooking. to increase southern Africa’s Infrastructure Action Plan However, they can benefit power supply by 6,481MW by from harmonised policies and the end of 2019 at a cost of be- A PLAN of Action has been developed to guide the region towards regulatory frameworks to en- tween US$7 billion and US$18 implementation of priority infrastructure projects as presented in able trade of energy equip- billion. the Infrastructure Master Plan. Key elements include the following: ment between the mainland Three major interconnecting v Proposed funding mechanisms and the island states. Coordi- projects would facilitate the con- The Plan of Action outlines some key modalities for financing in- nated financial resource mo- nection of Angola, Malawi and frastructure, which include public financing through fiscal mecha- bilisation would also be Tanzania to the SAPP grid. nisms and sovereign loans, grants from development partners, beneficial. The three are the only SAPP private sector funding and private-public partnership arrange- They can participate in the ments. members yet to be linked to the v exchange of experiences for regional power grid. Other Institutional structures/monitoring and evaluation mecha- renewable energy research SAPP member states are nisms The following structures will continue to set the approval process and development, the manu- Botswana, DRC, Lesotho, of the SADC infrastructure programme as per SADC protocols: facturing and trading of re- Mozambique, Namibia, South [ Sectoral project committees newable energy technologies, Africa, Swaziland, Zambia and [ Sub-sectoral committees clean coal technologies and Zimbabwe. [ Committees of senior officials coal export arrangements. The island states of Mada- [ Sectoral ministerial committees They can also benefit from gascar, Mauritius and Sey- [ Infrastructure ministers committee harmonised tariffs and stan- chelles are not members of [ Council of Ministers dardised power purchase SAPP. [ Summit. r agreements. r 2 SOUTHERN AFRICA Today, December 2012 POLICY “SAPP should have more authority to promote energy development” THE SADC Secretariat has meeting held in Harare, Zim- to formal laws, which would called for Member States to re- babwe, the SADC Senior Pro- allow the regional body to view the role and function of gramme Officer for Energy, have greater authority over the Southern African Power Freddie Motlhatlhedi said for energy issues in the region. Pool (SAPP) to ensure that the SAPP to fully carry out its du- Motlhatlhedi said consul- regional body becomes more ties, member states need to re- tations on the review of the effective in its efforts to pro- view the role and functions of IGMOU should commence mote development in the en- the regional power pool. ahead of the SADC Energy ergy sector. Presently, SAPP has lim- Ministers meeting scheduled SAPP is a regional body ited power to implement en- for April 2013 in Lesotho. that coordinates the planning, ergy projects, and He urged member states generation, transmission and Motlhatlhedi says there is to set up a committee that More transmission lines marketing of electricity on be- need for the power pool to will look at how best to re- through the SAPP would also half of member state utilities have more authority in spear- structure and review SAPP so enable member states to bene- in SADC. heading efforts to ensure that that the recommendations fit from new generation capac- The power utilities in the region recovers from crip- could be approved by the ity installed in other countries.
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