southern african power pool 1 overview of the sapp and the energy network in southern africa by...

SOUTHERN AFRICAN POWER POOL1

Overview of the SAPP and the Energy Network in Southern Africa

www.sapp.co.zw

ByEng. Musara Beta

Chief Market AnalystSAPP Coordination Centre

Carbon Capture & Storage Workshop: Perspectives for the Southern Africa Region

Holiday Inn, Sandton, Johannesburg, SOUTH AFRICA31 May 2011


1. INTRODUCTION TO SAPP

2. SAPP DEMAND & SUPPLY BALANCE

3. SAPP GENERATION MIX

4. TRANSMISSION NETWORK DEVELOPMENT

5. DEMAND SIDE MANAGEMENT

6. SAPP COMPETITIVE MARKET

7. CONCLUSION

CONTENTS


1. INTRODUCTION TO THE SAPP

Geographic

DR CongoTanzania

Zambia

Angola Malawi

Zimbabwe

MozambiqueBotswanaNamibia

South AfricaLesotho

Swaziland

12 Countries

230 Million people

Average Electricity growth rate 3% p.a. For South Africa

demand growth was 4.9% in 2007 and for whole region 4.6%.


Thermal Southern Network Thermal Southern Network

DRCDRC

TanzaniaTanzania

AngolaAngola

ZambiaZambiaMalawiMalawi

MozambiqueMozambique

ZimbabweZimbabwe

BotswanaBotswana

NamibiaNamibia

South AfricaSouth AfricaSwazilandSwaziland

LesothoLesotho

Hydro Northern NetworkHydro Northern Network

Motivation to SAPP Formation


No Full Name of Utility Status Abbreviation Country

1 Botswana Power Corporation OP BPC Botswana

2 Electricidade de Mocambique OP EDM Mozambique

3 Electricity Supply Corporation of Malawi NP ESCOM Malawi

4 Empresa Nacional de Electricidade NP ENE Angola

5 ESKOM OP Eskom South Africa

6 Lesotho Electricity Corporation OP LEC Lesotho

7 NAMPOWER OP Nam Power Namibia

8 Societe Nationale d’Electricite OP SNEL DRC

9 Swaziland Electricity Board OP SEB Swaziland

10 Tanzania Electricity Supply Company Ltd NP TANESCO Tanzania

11 ZESCO Limited OP ZESCO Zambia

12 Copperbelt Energy Corporation ITC CEC Zambia

13 Lunsemfwa Hydro Power Company IPP LHPC Zambia

14 Zimbabwe Electricity Supply Authority OP ZESA ZimbabweOP = Operating MemberITC = Independent Transmission CompanyIPP = Independent Power ProducerNP = Non-Operating Member

Membership

CEC and LHPC private companies admitted following SAPP reforms


2. DEMAND AND SUPPLY SITUATION

No. Country Utility

Installed Capacity

[MW] As at Apr 2011

Available Capacity

[MW] Apr 2011

Installed minus

Available [MW]

2010 Peak Demand

[MW]

Capacity Required

[MW] 10.2%

Reserve

Deficit (MW)

1 Angola ENE 1,399 1,202 197 1100

2 Botswana BPC 202 190 12 553

3 DRC SNEL 2,442 1,170 1,272 1,081

4 Lesotho LEC 72 72 - 121

5 Malawi ESCOM 300 300 - 300

6 Mozambique EDM 233 174 59 560

HCB 2,075 2,075 -

7 Namibia NamPower 393 360 33 564

8 South Africa Eskom 44,170 41,074 3,096 36,705

9 Swaziland SEC 70 70 - 204

10 Tanzania TANESCO 1108 880 228 833

11 Zambia ZESCO 1,812 1,215 597 1,600

12 Zimbabwe ZESA 2,045 1,320 725 2,100

56,321 50,102 6,219 45,721 50,385 (283)

53,514 47,720 5,794 43,488 47,924 (204) Total Interconnected SAPP

TOTAL SAPP


SAPP Planned & Required Gen. Capacity

2014Critical

For Capacity

2016Critical

For Energy

Planned Capacity vs Forecast , MWAll SAPP Members

0

10000

20000

30000

40000

50000

60000

70000

80000

2010 2011 2012 2013 2014 2015 2016

MW

Forecast Capacity Planned

Energy Planned vs Forecast , GWhAll SAPP Members

050000

100000150000200000250000300000350000400000450000

2010 2011 2012 2013 2014 2015 2016

GW

h

Energy Forecast Energy Planned (GWh)


3. SAPP GENERATION MIX - Current

74.3% Coal

20.1% Hydro

4.0% Nuclear

1.6% Gas/Diesel

Available Capacity - 2010

Angola - 2%

DRC - 2.4%

Mozambique - 4.5%

South Africa - 82.5%

Zambia - 2.4%

Zimbabwe - 2.7%

Rest - 3.5%


Medium Term Outlook

Of the 28,462MW to be commissioned, approximately 80% will be coal and 12% hydro.

Technology MW %

Coal 22,786 80.1

Hydro 3,451 12.1

Gas 1,900 6.7

Diesel 160 0.6

Wind 165 0.6

TOTAL 28,462 100


The SAPP PLAN shows that 56,686 MW of new additional power generation capacity would be required by 2025 as follows:

Planned New Generation

The optimized plan includes no new nuclear.

Technology Capac ity [MW] Percentage [%]

Coal 23,883 42%

Hydro 18,045 32%

Nuc lear - 0%

Gas 2,164 4%

Diesel 12,594 22%

TOTAL 56,686 100%


SAPP Future Generation Mix

Technology Capac ity [MW] Percentage [%]

Coal 57,415 56%

Hydro 27,016 26%

Nuc lear 1,800 2%

Gas 2,732 3%

Diesel 13,908 14%

TOTAL 102,871 100%

In 2025, a total of 102,871 MW of generation would be required in the SAPP as follows:


4. TRANSMISSION PROJECTS

2013: Mozambique Malawi

2015:DRC - Angola – 400 kV

2014: Zambia - Tanzania - 400 kV

DRCDRC

TanzaniaTanzania

AngolaAngolaZambiaZambia

MalawiMalawi

MozambiqueMozambique

ZimbabweZimbabwe

BotswanaBotswana

NamibiaNamibia

South AfricaSouth Africa

SwazilandSwaziland

LesothoLesotho

2013: ZIZABONA -220/330 kV

2016: MOZAMBIQUE BACKBONE -RSA

2015: RSA Strengthening

2017: Namibia – Angola


Four technologies were planned:i. Compact florescent lamps (CFLs)ii. Solar Water Heaters (SWH)iii. Hot Water Load Control (HWLC),

and iv. Commercial Lighting

5. DEMAND SIDE MANAGEMENT

In 2010, 750MW of savings were realised with CFL programme against a target of 1400 MW

-

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

2009 2010 2011 2012 2013 2014 2015

Year

Dem

and

Red

uct

ion

[M

W]

HWLC

Commercial Lighting

SWH

CFLs


6. SAPP COMPETITIVE MARKET OVERVIEW

SAPP DAM Market opened for live trading on 15 December 2009

Market performance highlights as of 31st April 2011

437,000 MWh Sale and 338,000 MWh Buy bids received

42,000 MWh was matched on the DAM trading platform

However only 29,000 MWh was traded or approximately 1% market share

The remainder could not be traded due to transmission constraints


Average Monthly Market Clearing Prices as of 31st Apr 2011

-

10.00

20.00

30.00

40.00

50.00

Dec

-09

Jan-1

0Fe

b-1

0M

ar-1

0Ap

r-1

0M

ay-1

0Ju

n-1

0Ju

l-10

Aug

-10

Sep

-10

Oct-

10No

v-1

0De

c-1

0Jan

-11

Feb

-11

Mar

-11

Apr

-11

Average Market Clearing Prices (MCPs) USD/MWhr


7. CONCLUSION

SAPP is making efforts to reduce carbon emissions In the long-term, high cost coal will be displaced by

cleaner energy sources such as hydro, wind and solar Coal % to be reduced from 74% to 56%. Hydro % to be increased from 20% to 26% Wind and solar % to be increased from 0% to

approx. 0.5%

SAPP has reformed in line with world wide trends in the electricity sector To date SAPP has introduced a competitive power

market in the form of a Day Ahead Market Intends to introduce other markets incl. Carbon

markets

southern african power pool 1 overview of the sapp and the energy network in southern africa by...

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