20th July 2024

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The Southern African Energy Pool (SAPP) is probably the most lively energy pool in Africa. It’s made up of 12 international locations and residential to 360 million individuals. The entire put in technology capability within the area is 80 GW. The height demand within the area is 57 GW, nonetheless the accessible capability is simply 48GW in line with the figures from the SAPP, leaving an enormous electrical energy technology shortfall. Essentially the most affected member states are South Africa, Zambia, and Zimbabwe, the place residents face common electrical energy rationing cycles generally known as load-shedding. `

The electrical energy technology combine within the Southern African Energy Pool is dominated by coal. Coal’s share is at 59% (largely from South Africa and locations like Zimbabwe), adopted by hydro at 24%, photo voltaic PV at 4%, distillate at 3.8%,  then wind, nuclear (South Africa) at 3% and open cycle fuel generators at 2%.

The SAPP Technology Combine. Picture courtesy of SAPP

The SAPP operates 4 aggressive electrical energy markets between twelve member international locations. It has facilitated commerce between utilities in Southern Africa since 1995. The working member international locations embrace Namibia, South Africa, Lesotho, Eswatini, Zimbabwe, Botswana, Mozambique, Zambia, Malawi, and DRC, that are principally represented by every nation’s nationwide utility.

A current presentation by Eng. Alison Chikova, Chief Engineer on the Southern African Energy Pool exhibits that 9 international locations are at present interconnected at transmission degree with Three international locations not but linked to the SAPP grid. Malawi is linked by way of the Mozambique – Malawi Interconnector and Tanzania is being linked by way of the Zambia – Tanzania Interconnector which is able to result in interconnection of SAPP and the East African Energy Pool as Tanzania can be being linked to Kenya. Angola will probably be linked to Namibia, DRC, and Zambia.

The SAPP Interconnected Grid. Picture courtesy of SAPP

SAPP’s Buying and selling preparations are supposed to fulfill the imaginative and prescient of SAPP, which is to:

  • Facilitate the event of a aggressive electrical energy market within the Southern African area.
  • Give the tip person a alternative of electrical energy provide.
  • Be sure that the Southern African area is the area of alternative for funding by vitality intensive customers.
  • Guarantee sustainable vitality developments by way of sound financial, environmental & social practices.
  • STEM was initially utilized in SAPP and at present DAM system is getting used. The pool moved from a cooperative to a aggressive pool

SAPP Markets

Bilateral Market- Bilateral Buying and selling Aims are primarily to satisfy long-term demand and provide steadiness

  • Buying and selling preparations mutually agreed between bilateral events
  • Volumes and costs are the important thing parameters
  • Transmission path to be secured prematurely
  • Will be agency or non-firm
    • Agency contracts
      • Have penalties for non-delivery and
      • Typically, not interruptible – reliability premium
    • Non-Agency contracts
      • Are interruptible with discover
      • If discover given, no penalties
      • Typically, lower than 75% dependable.

Ahead Bodily Markets — Aggressive buying and selling in month-to-month or weekly contracts (or every other outlined intervals longer than in the future forward) for future supply in line with the contract specs.

The next vitality contracts could also be traded:

  • FPM-Month-to-month trades hourly vitality base-load contracts for every of the 24 hours of all days within the following month.
  • Hourly vitality base-load contracts for the next time-of-use contracts with completely different hourly patterns legitimate for all days within the following month
  • Off-peak hours
  • Non off-peak hours
  • FPM-Weekly commerce’s hourly vitality contracts for the next time-of-use contracts with completely different hourly patterns legitimate for all days within the following week:
    • Off-peak hours
    • Peak hours
    • Customary

Day Forward Market –– The regional market established inside the SAPP with the targets to commerce electrical energy a day prematurely of the supply of such trades.

  • Hourly vitality contracts for every of the 24 hours of the next day, or a future day.

Intra Day Market — The IDM is a steady market, and buying and selling takes place day by day across the clock till one hour earlier than supply. Costs are set based mostly on a first-come, first-served precept.

  • Hourly vitality contracts for a number of hours for intervals as specified by the SAPP Market Operator.

The persistent load-shedding points plaguing South Africa, Zambia, and Zimbabwe might be solved by unlocking the complete potential of the Southern African Energy Pool in addition to the East African Energy Pool as soon as it’s totally activated. That is why it’s necessary to prioritize and speed up deliberate interconnections between Tanzania and Zambia in addition to Angola’s to Namibia, DRC, and Zambia. Taking a look at desk under from SAPP, Angola had extra capability of round 2.Four GW. A few of this might be taken up by different members of the SAPP as required to alleviate among the shortfalls.

SAPP Demand and Provide Panorama. Picture courtesy of SAPP

Just lately, Tanzania introduced that it was curbing technology from a few of its hydropower crops on account of extra technology capability on account of the heavy rainfall up to now this season. This extra capability may have been fairly helpful had it been injected into the SAPP. As Tanzania can be going to be linked with Kenya, with Kenya connecting with Ethiopia, Ethiopia’s hydro assets may be fairly helpful for the SAPP and the East African Energy Pool as soon as it’s totally lively.

Within the medium to long run, Kenya, and Ethiopia’s wind potential in addition to Kenya’s nice geothermal potential may be unlocked so as to add helpful renewables into the combo for the East African Energy Pool in addition to feeding these into the Southern African Energy Pool. All of the member states of the SAPP will after all additionally have to ramp up any of their very own electrical energy technology tasks that can cumulatively assist to bridge the present technology shortfall of no less than 11GW.

Whereas the bigger technology tasks can take part within the Southern African Energy Pool, there’s additionally an unimaginable alternative for 1000’s of small distributed renewable energy tasks akin to small hydro crops and rooftop photo voltaic within the C&I and residential sector to contribute to the native vitality combine of every of those international locations. We’ve got seen simply how a lot influence rooftop photo voltaic can have in locations like Australia the place there are over Three million houses with rooftop photo voltaic. Rooftop photo voltaic now accounts for 11.2% of Australia’s electrical energy provide, with households and companies enjoying a number one function in Australia’s renewable vitality transition, in line with the Clear Power Council’s new Rooftop Photo voltaic and Storage Report. 2.9 GW of rooftop photo voltaic from 314,507 items was put in in Australia in 2023, and rooftop PV surpassing 20 GW of whole put in capability in Australia.

Nearer to house, we have now additionally seen simply how shortly distributed photo voltaic crops can add some good capability. In South Africa, Three GW of photo voltaic within the C&I and Residential photo voltaic sectors was added in simply over a 12 months from March 2022 to June 2023.

One other crucial space to deal with for member states of the SAPP to deal with is rising electrical energy entry for his or her residents as not one of the member states are but to attain common entry to electrical energy for his or her residents. Entry to electrical energy remains to be fairly low with plenty of the member states nonetheless under 50%. There’s plenty of work to be finished on this regards and due to this fact accelerating and increasing deliberate interconnection tasks in addition to accelerating deliberate technology tasks together with distributed renewables will go a good distance in rising entry to electrical energy.

Entry to electrical energy within the SAPP member states, chart by Remeredzai utilizing 2023 information from IRENA

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