1. Overview of the SAPP and the Energy Network in Southern Africa By
Eng. Musara Beta
Chief Market Analyst
SAPP Coordination Centre
Carbon Capture & Storage Workshop: Perspectives for the Southern Africa Region
Holiday Inn, Sandton, Johannesburg, SOUTH AFRICA
31 May 2011

2. CONTENTS INTRODUCTION TO SAPP SAPP DEMAND & SUPPLY BALANCE
SAPP GENERATION MIX
TRANSMISSION NETWORK DEVELOPMENT
DEMAND SIDE MANAGEMENT
SAPP COMPETITIVE MARKET
CONCLUSION

3. 1. INTRODUCTION TO THE SAPP
Geographic
DR Congo
Tanzania
Zambia
Angola
Malawi
Zimbabwe
Mozambique
Botswana
Namibia
South Africa
Lesotho
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%.

4. Motivation to SAPP Formation
Hydro Northern Network
DRC
Tanzania
Angola
Zambia
Malawi
Mozambique
Zimbabwe
Botswana
Namibia
South Africa
Swaziland
Lesotho
Thermal Southern Network

5. Membership
CEC and LHPC private companies admitted following SAPP reforms

6. DEMAND AND SUPPLY SITUATION

7. SAPP Planned & Required Gen. Capacity
2014
Critical
For
Capacity
2016
Critical
For
Energy

8. SAPP GENERATION MIX - Current
74.3% Coal
20.1% Hydro
4.0% Nuclear
1.6% Gas/Diesel

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

10. Planned New Generation
The SAPP PLAN shows that 56,686 MW of new additional power generation capacity would be required by 2025 as follows:
The optimized plan includes no new nuclear.

11. SAPP Future Generation Mix
In 2025, a total of 102,871 MW of generation would be required in the SAPP as follows:

12. TRANSMISSION PROJECTS
DRC
2013: ZIZABONA -220/330 kV
Tanzania
2013: Mozambique Malawi
2014: Zambia - Tanzania kV
Angola
Malawi
Zambia
2015:DRC - Angola – 400 kV
Zimbabwe
Namibia
2016: MOZAMBIQUE BACKBONE -RSA
Mozambique
Botswana
2015: RSA Strengthening
Swaziland
2017: Namibia – Angola
South Africa
Lesotho

13. DEMAND SIDE MANAGEMENT-
1,000.00
2,000.00
3,000.00
4,000.00
5,000.00
2009
2010
2011
2012
2013
2014
2015
Year
Demand Reduction [MW]
HWLC
Commercial Lighting
SWH
CFLs
Four technologies were planned:
Compact florescent lamps (CFLs)
Solar Water Heaters (SWH)
Hot Water Load Control (HWLC), and
Commercial Lighting
In 2010, 750MW of savings were realised with CFL programme against a target of 1400 MW

14. 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

15. Average Monthly Market Clearing Prices as of 31st Apr 2011

16. 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