Lekopanye Mooketsi
28 February 2008
At a meeting in Gaborone last week, SADC energy ministers have registered their recognition of high electricity demand which outstrips supply.
Among factors leading to this situation are positive economic growth, which averaged about five percent in most of SADC member states and rural electrification projects in others.
According to a communique from the SADC secretariat, the ministers noted the current status of power supply within the region, which has installed capacity of 54,742 MW of which only 46,391 MW is available.
The statement says although a new generation amounting to 1,810 MW was commissioned in the region last year, the reserve margin is still deficit against a required reserve margin of 10 percent.
The situation will continue until 2013 when all planned generation projects are commissioned.
The ministers reviewed the status of implementation of the Southern African Power Pool's (SAPP) generation, transmission and inter-connector projects, which are categorised as rehabilitation, and related infrastructure.
The projects required a total of US$46.4 billion. In addition to these, the ministers noted progress made on the Western Corridor Project (WESTCOR).
The ministers took cognisance of short-term measures being instituted by member states and SAPP to overcome the diminished surplus installed capacity and the expected impact of these measures on the power supply situations.
These measures include respective utilities' short-term projects, ESKOM's recovery plan and power being availed by Mozambique for export to the rest of the region.
Following the understanding that the SADC region is undergoing a power emergency situation, the Ministerial Task Force adopted a road map to accelerate the region's recovery from this power shortage through ensuring the effective connectivity of inter-connectors, as well as Supply Side and Demand Side Management initiatives.
The meeting agreed that a Power Conservation Programme (PCP) be formulated and implemented as a SADC programme. A SADC policy be developed to ensure efficient use of electrical energy.
Another proposal is the development of a minimum energy standard for all new electrical connections and phasing out of incandescent light bulbs in preference for compact fluorescent lights (CFLs).
The ministerial task force further noted that an enabling environment is indispensable to accelerate private sector participation and additional investment in the power sector.
In order to achieve an enabling environment, the SAPP will work towards the harmonisation of national electricity policy frameworks. SAPP will also develop and implement the necessary national policies and promulgate legislation to ensure the promotion of power conservation practices.
The ministerial task force noted that in addition to the supply side and demand side issues, the power sector is facing additional challenges in financing of power projects and institutional arrangements for implementation. The ministers agreed to commission a study to recommend a financing model for cross-border projects.
SADC/SAPP are to assume direct responsibility for coordinating and monitoring project implementation. Member states should make full use of project preparation facilities to package projects. SADC should follow up on international pledges made to finance NEPAD regional projects.
The task force also agreed to strengthen SAPP to ensure that it has adequate capacity to facilitate the implementation of the road map. In addition, SAPP and the Regional Electricity Regulators Association (RERA) were given a new mandate to champion regional power projects in conjunction with member states.
The task force underscored the importance of the proposed measures as a response to address the emergency situation. They impressed upon the SADC secretariat, SAPP and RERA, supported by the utilities and other cooperating partners, the need to have clear milestones and timeframes for the proposed measures. The task force noted with appreciation the reassurance by South Africa that she will honour her contractual obligations with regard to the power supply to the rest of the region.
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