Southern African Power Pool

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1 Southern African Power Pool Status of the SAPP Regional Interconnection Projects and Other Updates Dr. Lawrence Musaba SAPP Coordination Centre Manager Consultative Meeting of the African Regional Power Pools ilton otel, Algers, ALGERIA 3 December SOUERN AFRICAN POWER POOL

2 CONENS 1. Status of SAPP Interconnection Projects 2. Other Updates New SAPP Offices EMS/SCADA System New rading Platform andling of Interchange Imbalance ransmission Pricing SAPP Priority Projects Guidelines for cross-border trading Capacity Building 2 SOUERN AFRICAN POWER POOL

3 1. SAUS OF E SAPP REGIONAL RANSMISSION PROJECS 1.1 Mozambique - Malawi Presidents met in August 2012 to sign MOU Ministerial Meeting held Project to be constructed at 400 kv 1.2 Mozambique Backbone CESUL EIAs done and approved by Government Shareholder structure done 3 SOUERN AFRICAN POWER POOL

4 1.3 Zambia - anzania Kenya ANESCO secured funding for phase 1 and tender documents are being prepared Feasibility studies have been concluded for Singida portion Iringa Mbeya feasibility studies are ongoing Conceptual design was ready in Oct DRC - Zambia 220kV Interconnector Construction work ongoing in DRC Construction to start in Jan 2013 on Zambia(CEC) side Completion expected in June2013 on DRC side 4 SOUERN AFRICAN POWER POOL

5 1.5 Central ransmission Corridor (Zimbabwe) Project Status Marvel Insukamini : ender Adjudication is in progress New SVC at Sherwood: ender Adjudication is in progress Alaska Sherwood line: Studies in progress Orange Grove riangle: Phase 1 financing secured and preparatory work done 5 SOUERN AFRICAN POWER POOL

6 1.6 ZIZABONA ransmission Project Objective of the Project he ZIZABONA project is meant to: 1. Decongest the central transmission corridor 2. Increase north-south regional trade by providing a western corridor link between north and south 3. Complement the reinforcements and transfer capacity of the proposed central transmission corridor (CC) project 6 SOUERN AFRICAN POWER POOL

7 1.6.2 Project Scope and Definition 231km kV lines, initially operated at 330KV and total length 408km. 2. Lines from wange & Pandamatenga to Vic Falls switching station. 101km 3. Line from Vic Falls to new Livingstone 330kV substation (to be financed separately). 76km 4. Additional line from Livingstone to Zambezi substation at Katima. 5. he lines will link Zimbabwe, Zambia, Botswana and Namibia ZIZABONA 7 7 SOUERN AFRICAN POWER POOL

8 1.6.3 ZIZABONA Project Status 8 Project launched on 12 July 2012 and Officially opened by the Prime Minister of Namibia Market studies, echnical, ransmission charge methodology, Financial modelling, Project Packaging, SPV structure and PIM presented Responses from potential investors in the form of debt contributions were pledged IGMOU signed by Namibia, Zambia and Zimbabwe Eskom and CEC to be informed of shareholding in the Special Purpose Vehicle Company (SPV) Project financial close by end of 2013 Commercial Operation SOUERN AFRICAN POWER POOL

9 Future SAPP ransmission Gabon Congo Dem Rep of Congo Brazzaville Kinshasa Luanda Rwanda Burundi Kenya Nairobi anzania Dar es Salaam Angola Malawi Namibia Botswana Zambia Lusaka arare Lilongwe Zimbabwe Mozambique 9 DRC-Angola Angola-Namibia ZIZABONA Zambia-anzania Malawi-Mozambique DRC-Zambia Cape own Windhoek South Africa N P Gaborone Pretoria Johannesburg P Lesotho Maputo Mbabane Swaziland P ydro station Pumped storage scheme hermal Station SOUERN AFRICAN POWER POOL

10 2. OER UPDAES 2.1 New SAPP Offices SAPP-CC moved into new offices on 22 February he offices have been refurbished and have accommodated all staff. A Board Room including other amenities have been provided for. Soitec of RSA will install a concentrated PV solar station (15kW) at the new offices. his is an initiative from Eskom. 10 SOUERN AFRICAN POWER POOL

11 2.2 EMS/SCADA System EMS/SCADA system has been installed and commissioned. he CC is now able to view power flows on major tie-lines in real time New DAM rading Platform New DAM rading Platform has been installed at the new offices: software and hardware. Old DAM P decommissioned and to be donated in RSA and Zimbabwe to learning institutions. Government of Norway and Sida have approved the recommendations. SOUERN AFRICAN POWER POOL

12 Rate (US$/MWh) 2.4 andling Interchange Imbalance In the interim, Interchange Imbalance Energy is settled based on hourly average power system frequency (f). Settlement is no longer in Kind but in cash. SAPP is exploring the use of ACE methodology. Block Imbalance Energy Rates A Pool highest generation cost C Pool average generation cost A E B C D E f (z) SOUERN AFRICAN POWER POOL

13 2.5 ransmission Pricing SAPP has developed a new transmission pricing methodology based on the following principles: 1. Entry and exit charges to apply to both buyers and sellers of electricity (generators and loads) on all new transactions. 2. Utilities should determine the NUoS tariff in accordance with the proposal. 3. SAPP CC calculated entry / exit charges to be used where there are no approved country charges. 4. he current wheeling charges for Zambia to be split for CEC and ZESCO for international transits. 13 SOUERN AFRICAN POWER POOL

14 2.5 ransmission Pricing 5. Existing agreements with bilateral contracts will continue to use the current practice where the buyer pays for wheeling. 6. Propose that the new methodology comes into effect from 1 January SAPP CC to facilitate training on cost of supply studies. 14 SOUERN AFRICAN POWER POOL

15 2.6 Priority Projects At the SAPP Executive Committee meeting held on 20 October 2011 in Maseru, Lesotho, the Committee agreed to a priority list of projects for the SADC region based on a criteria developed by Management Committee in 2005 and updated in An Inter-Governmental MOU has been developed by SAPP listing all the priority projects for the Region. he MOU will be signed by the Ministers responsible for energy in the SADC region in April/May SOUERN AFRICAN POWER POOL

16 2.7 Guidelines for Cross-Border rading RERA working together with the SAPP has developed Guidelines to Cross-Border Power rading. he Guidelines have been adopted and signed by the Ministers responsible for energy in the SADC region. he Guidelines came into operation from January SOUERN AFRICAN POWER POOL

17 2.8 Capacity Building he SAPP has secured grant funding from the EU to support capacity building program for SAPP in power pool technical operations and management. he SAPP has also secured grant funding from the Government of Norway and Sida to support capacity building in market issues: Ancillary services market development Balancing market Capacity market 17 Financial Market, etc SOUERN AFRICAN POWER POOL

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