Mozamqbique energy sector
The Southern African Power Pool - SAPP
The Southern African Power Pool (SAPP): A Regional Energy Integration Hub
As the global energy landscape undergoes rapid transformations, Southern Africa stands out with immense potential for hydroelectric, gas, and renewable energy generation. At the forefront of this regional energy integration is the Southern African Power Pool (SAPP), established in 1995 under the Southern African Development Community (SADC).
Formation and Governance
The Southern African Power Pool was founded on August 28, 1995, through an SADC Inter-Governmental Memorandum of Understanding, with its operations formalized by an Inter-Utility Memorandum in December that same year. Headquartered in Harare, Zimbabwe, SAPP comprises 12 member countries, each represented by their respective national power utilities. This includes:
- Angola: Empresa Nacional de Distribuição de Electricidade (ENDE)
- Botswana: Botswana Power Corporation (BPC)
- Democratic Republic of Congo (DRC): Société Nationale d'Électricité (SNEL)
- Eswatini: Eswatini Electricity Company (EEC)
- Lesotho: Lesotho Electricity Company (LEC)
- Malawi: Electricity Supply Corporation of Malawi (ESCOM)
- Mozambique: Electricidade de Moçambique (EDM)
- Namibia: NamPower
- South Africa: Eskom
- Tanzania: Tanzania Electric Supply Company (TANESCO)
- Zambia: ZESCO Limited
- Zimbabwe: Zimbabwe Electricity Supply Authority (ZESA)
In addition to these national utilities, SAPP includes independent entities and non-utility members, such as the Mozambique Transmission Company (Motraco).
Objectives of SAPP
SAPP's mission extends to several critical goals:
- Facilitate Electricity Trading: By creating a competitive regional market, SAPP aims to reduce costs and improve energy access for member countries.
- Enhance Energy Security: Coordinated power generation and transmission efforts help ensure a reliable supply across the region.
- Optimize Resources: Leveraging diverse energy sources—including hydro, coal, gas, and renewables—enables SAPP to balance supply and demand effectively.
- Promote Infrastructure Development: The pooling of resources supports cross-border transmission projects essential for integrating national grids.
- Support Economic Growth: Accessible and affordable electricity is crucial for driving industrialization and socio-economic development in the SADC region.
Key Operations
Installed Capacity and Energy Mix
As of 2023, SAPP boasts an installed capacity of approximately 78,000 MW across its member countries. However, the available capacity is around 60,000 MW due to maintenance and inefficiencies. The energy mix is predominantly coal-based, particularly from South Africa and Zimbabwe, while Mozambique and Zambia contribute significant hydroelectric power. Increasing contributions from gas and renewable energies, such as solar and wind, are part of the evolution of the region's energy landscape.
Transmission Infrastructure
The SAPP comprises over 25,000 km of high-voltage transmission lines, with key interconnectors linking member countries. The Cahora Bassa Dam in Mozambique, for example, plays a pivotal role in delivering power to South Africa and facilitating trade within the region.
Trading Activity
In 2022, SAPP facilitated the trading of approximately 3,000 GWh of electricity, with South Africa and Mozambique serving as prominent exporters. Motraco exemplifies this collaboration, transmitting power from Mozambique's Cahora Bassa Dam to neighboring countries and notably supporting the Mozal Aluminium Smelter's energy needs.
Relevance to Mozambique
Energy Exporter
Mozambique, through its membership in SAPP, has positioned itself as a critical player in the region's energy dynamics. The country is a significant exporter of hydroelectric and gas-generated electricity, with ongoing projects like the Central Termica de Ressano Garcia (175 MW) and the Temane Thermal Power Station (450 MW) enhancing its capabilities.
Industrial Support
SAPP facilitates a reliable power supply to energy-intensive industries, with Mozal consuming approximately 950 MW, which contributes to 30% of Mozambique's exports. This reliability boosts industrial output and economic resilience.
Future Potential
Upcoming projects like the Mphanda Nkuwa Hydropower (1,500 MW) project and developments in the Rovuma Basin position Mozambique to further increase its energy exports, harnessing its 187 GW potential in hydro and gas resources.
Electrification Goals
SAPP aligns with Mozambique's objective of achieving universal electricity access by 2030. With electricity access increasing from 34% in 2021 to 48% in 2022, SAPP plays an essential role in this electrification drive.
Challenges to Consider
Despite its advantages, SAPP confronts several challenges:
- Infrastructure Gaps: Aging transmission lines and limited interconnectors restrict trading capacity and reliability.
- Supply Shortages: The energy crisis in South Africa and adverse weather events impacting hydro generation highlight vulnerabilities in the supply chain.
- Financial Constraints: Member utilities often struggle with funding for new projects, underscoring the need for private investment.
- Regulatory Harmonization: Differing national regulatory environments can complicate market integration efforts.
Summary
The Southern African Power Pool stands as a vital mechanism for regional energy integration, providing a framework through which Mozambique can leverage its hydroelectric and gas resources to bolster industrial growth and enhance energy exports. For energy sector leaders, engagement with SAPP opens doors to investment opportunities in generation, transmission, and renewable projects while addressing inherent challenges through collaborative strategies. By connecting with entities like Motraco and EDM, business leaders can capitalize on Mozambique's role in this dynamic energy hub and contribute to a sustainable energy future for Southern Africa.