ZIMEC roundup by MAIMBOLWA MULIKELELA and KENNEDY MPESENI –

THE Southern African Power Pool (SAPP) has called for the strengthening of the regional power market to encourage regional cooperation in power projects development.
SAPP Chief Market Analyst Musara Beta said there was need for trade in power by merging into a regional market to further optimise social welfare and increase security of supply.
“This can be done by encouraging interconnections between neighboring countries so that in time of need, economic activities in each participating countries are not disrupted,” Mr Beta said.
He said this in a presentation at the just ended two-day Fifth Zambia International Mining Energy Conference and Exhibition (ZIMEC) held at Lusaka’s New Government Complex at the weekend.
Mr Beta said the regional power market had proven its value in the common interconnected power market and that it has the capacity to attract huge investments due to the expanded market.
SAPP was created in 1995 with the view to promoting cooperation and coordination in the planning and operation of the electricity business in the Southern African Development Community (SADC).
Other objectives are to facilitate cross border electricity trading in SADC, promote regional cooperation in power projects development that is generation and transmission infrastructure development, while increasing access to electricity in rural Areas.
SAPP helps in ensuring that the region attracts investment for large energy-intensive electricity users.
As at February 2015, the total SAPP installed capacity was 58.6 gigawatts with a total demand at peak standing at 48, 216 megawatts and Zambia having a share of 2, 287 megawatts.
South African power demand at peak has been topping at 36,000 against the operating capacity of 37,661 MW respectively.
To sustain this there was an urgent need to cooperate and coordinate in the planning and operation of the electricity business to efficiently facilitate cross border electricity trading among member countries.
Market evolution for regional power transactions takes time and that it requires a defined business plan and patience on the part of producers.
He said engaging in cross border trade result in more power resources becoming available in a large region than when it it is restricted to national level.
“Regional market facilitates more efficient management of marginal available production and transmission resources as well as transparent market, which provides price signals than the national market,” Mr Beta said.