EASTERN AFRICA EASTERN AFRICA POWER POOLPOWER POOL

EAPPEAPP55thth Coordination Meeting Coordination Meeting

OfOf

African Regional Power PoolsAfrican Regional Power Pools

66thth – 7 – 7thth May 2010 May 2010

Harare, ZimbabweHarare, Zimbabwe

ContentsContents

1- Introduction1- Introduction

2- Major activities2- Major activities

3- Conclusion3- Conclusion

2.2. MAJOR ACTIVITIESMAJOR ACTIVITIES

Major ActivitiesMajor Activities

• Technical Assistance and Capacity Building (EC Financed)

• Master Plan and Grid Code (NEPAD/IPPF managed by AfDB)

• Bilateral and Transmission Wheeling Agreements – Negotiations and Adoption (Possible USAID/UNDESA financing. A follow up of Kigali / Kampala coordination Meetings)

• Development of Coordination and Dispatch Centre Infrastructure and also the Independent Regulation framework (MFA Norway financing)

Major activitiesMajor activitiesEC ProjectEC Project

• European Commission Financing European Commission Financing (2.7M Eur)(2.7M Eur)

Overall objective

To strengthen the capability of the EAPP Permanent Secretariat to contribute in the improvement of the integration of the electricity markets of the region with a view to creating a regional electricity market.

Major activitiesMajor activitiesEC ProjectEC Project

Project componentsProject components

a.Preparation of the Eastern Africa Power Market Development

b. Preparation of a strategic plan and business plan

c. Power market rules and agreements for cross-border trade

Major activitiesMajor activitiesEC ProjectEC Project

Project components:

d) Horizontal activities

•         A regional database on power systems• Twinning (coaching) arrangement with

advanced power pools        Training         Study tour         Stakeholders meetings

Major activitiesMajor activitiesEC ProjectEC Project

• Regional Power Market DevelopmentRegional Power Market Development

• Analysis of the current power sector situation and Implementing database

• Review of the existing studies about Eastern Africa Power Development.

• Assessment of power market future development, based on available studies

Major activitiesMajor activitiesEC ProjectEC Project

Preparation of a strategic plan and a business plan

        Analysis of the current context of activities in Eastern African Power Sector, including legal, regulatory and institutional aspects, the tariff policies and EAPP organization;

·        setting up strategic objectives of the EAPP organization and a roadmap towards achieving the set objectives;

Major activitiesMajor activitiesEC ProjectEC Project

     Preparing the action plan, and means to monitor the performance of system operations and the orientations for the establishment of a Coordination Centre

     Preparing a 3-year business plan where actions are described in detail and financial needs and resources are identified and quantified.

Major activitiesMajor activitiesEC ProjectEC Project

Power market rules and agreements for cross-border trade: Preparation

  - market rules (licensing, guidelines for tariff setting         - Standard power purchasing agreement  - Standard agreement on power balancing·        - proposal for cost-based tariff-setting - proposal related the legal/regulatory framework·        -Treaty related to regional electricity trade

Major activitiesMajor activitiesEC ProjectEC Project

• Several validation workshops have been Several validation workshops have been held at different stages of study held at different stages of study implementationimplementation

• Project is on scheduleProject is on schedule

• The project is scheduled to be completed The project is scheduled to be completed by January 2012by January 2012

Major activities:Major activities:AfDB ProjectAfDB Project

• NEPAD-IPPF/AfDB Financing ( 1.7 Mil NEPAD-IPPF/AfDB Financing ( 1.7 Mil US$) US$)

- Drafting EAPP regional power system master plan (Egypt, Sudan, Djibouti, Ethiopia, Kenya, Uganda, Rwanda, Burundi, Tanzania, Eastern DRC)- Drafting of electricity grid code for EAPP-

Major activitiesMajor activitiesAfDB ProjectAfDB Project

• The project commenced with the Kick-Off The project commenced with the Kick-Off meeting is on 5meeting is on 5thth October, 2009. October, 2009.

• Inception report approved by the Steering Inception report approved by the Steering Committee on 9Committee on 9thth Dec, 2009 Dec, 2009

• The Interim Report to be submitted in June The Interim Report to be submitted in June 2010, for the comments by the Stakeholders.2010, for the comments by the Stakeholders.

• Training of Staff to commence after the Interim Training of Staff to commence after the Interim ReportReport

• Final report to be submitted early December, Final report to be submitted early December, 2010 followed by a Stakeholders Validation 2010 followed by a Stakeholders Validation WorkshopWorkshop

Major activitiesMajor activities

• other activities other activities

• UNDESAUNDESA - Twinning and Study - Twinning and Study Tours; Workshop on Agreements Tours; Workshop on Agreements donedone

• USAIDUSAID – Workshop on Power – Workshop on Power market Development on 1-5 market Development on 1-5 February 2010 and on Renewables February 2010 and on Renewables and efficiency in March 2010and efficiency in March 2010

MFA Norway Project USD 2.2MMFA Norway Project USD 2.2M

• Facilitation of Institutional set up of the CC and the IRB

• Recruitment and training of staff

• Installation and operationalization of the data base

• Installation and operationalization of the Communications Infrastructure

• The Kick-off Meeting was on 2nd Dec, 2009

MFA

• Project Coordinator and the Project Staff (Power Planner, Power Economist, ICT Specialist, Legal officer) have been identified.

• Project Staff to go for training for the operations of the Power Trade Coordination

• Project to be completed December, 2011

INTERCONNECTION PROJECTS

• 220 KV Ethiopia – Djibouti: To be completed by December, 2010

• 220 KV Ethiopia – Sudan: To be completed June 2010

• 500 KVDC Ethiopia – Kenya: To be completed in 2013

• Ethiopia – Sudan – Egypt to be done in two stages. The Ministers are discussing Policy on the Financial Model to be used

.

• Burundi – DRC 110KV under NELSAP for 2013

• Rwanda – DRC 220 KV under NELSAP for 1013

• The Kick –off meeting for the physical implementation of NELSAP projects took place in Kampala last year

IINTERCONNECTION PROJECTS

• Kenya Tanzania: Update study for the Feasibility Studies started April, 2010. Now considering 400KV. Under NELSAP for 2013/14

• Kenya – Uganda 220KV under NELSAP for 2013/14

• Uganda – Rwanda 220KV under NELSAP for 2013/14

• Rwanda – Burundi 110KV under NELSAP for 2013

Conclusion: End gameConclusion: End game

• Ready for power trade by 2013

• Most Eastern Africa countries would have been connected by 2012 /2013

• It is planned that the Policy, the Regulatory, Institutional and Legal Frameworks are planned to be in place before any 4 countries are interconnected

• The intensification of the power trade would follow an agreed Roadmap

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• Thank You

• Ahsante Sana!