Building a Regional Electricity Market: SAPP Challenges

The document examines the evolution of the Southern African Power Pool (SAPP) from a cooperative pool to a competitive regional electricity market (REM). It highlights the role of the SADC Energy Protocol and the integration of independent power producers (IPPs) and renewable energy sources (RES), using South Africa's REIPPPP as a primary example of private sector participation. The analysis identifies significant challenges, including the lack of political will among member states, disparities in national energy policies, and infrastructure deficits, while noting the potential for regional integration through shared hydropower and thermal resources.

• The Southern African Power Pool (SAPP) has transitioned from a cooperative framework to a competitive regional electricity market (REM), establishing a short-term energy market in 2001, a balancing market in 2002, and a day-ahead market in 2009.
• SAPP's effectiveness is limited by its lack of authority over member states; it serves as a counselor and coordinator rather than a decision-making body, meaning it cannot force national policy changes.
• Regional energy resources are split between a 'Thermal Southern Network' (including South Africa, Namibia, Botswana, Lesotho, and Swaziland) and a 'Hydro Northern Network' (including DRC, Angola, Zambia, Zimbabwe, Mozambique, Malawi, and Tanzania), with SAPP facilitating trade between them.
• South Africa is a dominant regional actor, with its national utility Eskom covering nearly 80% of the total regional demand for production and supply.
• South Africa's Renewable Energy and Independent Power Producer Procurement Programme (REIPPPP) aimed for a target of 3,725 MW to increase the share of IPPs to 30% of future energy production, resulting in significant price drops for wind (22%) and solar (40%) energy between the first and second bidding windows.
• Despite the growth of the REM, several SADC member states—specifically Tanzania, Malawi, and Angola—have not yet been included in the market as operating utilities.
• The region faces a critical shortage of surplus generation capacity, with SADC energy ministers warning in 2007 that capacity would run out if planned projects were not commissioned on schedule.

APA

Maupin, A. (2013). Building a Regional Electricity Market: SAPP Challenges. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_pg_CS4_maupin_20131212.pdf

Chicago

Maupin, Agathe. Building a Regional Electricity Market: SAPP Challenges. South African Institute of International Affairs, 2013. https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_pg_CS4_maupin_20131212.pdf.

Wikipedia

{{cite report |last1=Maupin |first1=Agathe |title=Building a Regional Electricity Market: SAPP Challenges |publisher=South African Institute of International Affairs |date=August 2013 |url=https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_pg_CS4_maupin_20131212.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{maupin2013building, author = {Maupin, Agathe}, title = {{Building a Regional Electricity Market: SAPP Challenges}}, institution = {South African Institute of International Affairs}, year = {2013}, month = aug, url = {https://saiia.org.za/wp-content/uploads/2013/12/REV_SAIIA_perisa_pg_CS4_maupin_20131212.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }