Increasing investment in interconnection and transmission in the SADC region should be an urgent priority for South Africa which has much to gain from exporting its surplus electricity. This is according to Jason Mann, a senior managing director with US-based FTI Consulting and a global specialist on energy economics, who believes it is a win-win situation all round. “Exporting its surplus energy will generate revenue for the power utility which at present has significant excess capacity, while countries currently under pressure due to electricity shortages will have a viable solution without having to fund big infrastructure,” he told FTW last week during a visit to South Africa. According to Mann, increasing cross-border trade of electricity is also not difficult as the infrastructure already exists across the region. The Cahora Bassa line, for example, links South Africa and Mozambique. “Exports within the region are already happening,” said Mann. “Within southern Africa at present there are only three countries that are not linked. Interconnection would have to be strengthened as the capacity on some of the infrastructure is limited.” New interconnectors to bring Angola, Malawi and Tanzania on board would have to be installed. According to Mann these projects are not difficult or challenging – and while cost depends on the type of terrain and distance covered, the basic infrastructure already exists. “It is really no different to installing wires between two points in one country,” he said. “The beauty is also that these interconnectors pay for themselves.” In Mann’s view, by increasing cross-border electricity governments in individual countries no longer have to source the large investments required for grid power infrastructure. He said there were a range of financing models to choose from. “There are various models where this has worked well in Europe,” he said. “The bigger challenge is getting the right commercial and regulatory arrangements between countries. Getting two countries to adopt the same regulations is near impossible and so one needs both sides of the border to co-operate. There has to be political will for this to work.”
INSERT
Increasing crossborder trade of electricity is not difficult as the infrastructure already exists across the region. – Jason Mann
