Southern Africa: SADC Takes Investment Drive to Europe for Energy Sector

Based on an analysis by SADC, a total of 19,000 MW worth of generation projects could be commissioned under the CDM in the region, and are therefore seeking funding. The projects to be presented at the conference are among some of the major energy projects that could solve SADC's current energy shortages if implemented on time. The Mphanda Nkuwa power plant, for example, has the potential to produce about 1,500 MW of electricity while the ZIZABONA transmission line has the capacity to feed more power to the SAPP regional power grid. SAPP is a 12-member regional body that coordinates the planning, generation, transmission and marketing of electricity on behalf of Member State utilities in SADC. The power utilities in mainland SADC, with the exception of Angola, Malawi and the United Republic of Tanzania, are interconnected through SAPP, allowing them to sell electricity to one another through a competitive market. SAPP has said that extensive investment in generation and transmission grids as well as other key energy infrastructure is crucial for southern Africa in its bid to ensure energy security.

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The SADC region has been experiencing power shortages dating as far back as 2006 due to a combination of factors including the diminishing generation surplus capacity against increasing growth in demand. Member States also did not act fast enough to boost generation capacity despite warnings of impeding shortages that came as early as 1999. The current shortages are despite the enormous generation potential that exist in the region ranging from hydro, wind, gas to solar power. The SADC Energy Infrastructure Development Conference set for 4-5 March in Frankfurt is being coordinated on behalf of Member States by the SADC Secretariat with support from the SADC Ambassadors Group in Germany. SAFRI together with various Germany financiers such as the Germany Development Bank (kFW) is funding the conference. SAFRI holds similar conferences on infrastructure development annually and the focus for this year is on energy. Regional utilities as well as other relevant stakeholders such as SAPP, the Regional Electricity Regulators Association of Southern Africa (RERA) and the Development Bank Southern Africa (DBSA) are taking part in the conference.