SAPP GENERATION MIX

Overview of the SAPP and the Energy
Network in Southern Africa
www.sapp.co.zw
By
Eng. Musara Beta
Chief Market Analyst
SAPP Coordination Centre
1
Carbon Capture & Storage Workshop: Perspectives for the
Southern Africa Region
Holiday Inn, Sandton, Johannesburg, SOUTH AFRICA
31 May 2011 SOUTHERN AFRICAN POWER POOL
CONTENTS
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
2
SOUTHERN AFRICAN POWER POOL
1. INTRODUCTION TO THE SAPP
Geographic

12 Countries

230 Million people

DR Congo
Average Electricity
growth rate 3% p.a.
 For South Africa
demand growth was
4.9% in 2007 and for
whole region 4.6%.
Tanzania
Angola
Malawi
Zambia
Namibia
Zimbabwe
Botswana
Mozambique
Swaziland
South Africa
3
Lesotho
SOUTHERN AFRICAN POWER POOL
Motivation to SAPP Formation
Hydro Northern Network
DRC
Tanzania
Malawi
Angola
Zambia
Zimbabwe
Namibia
Botswana
Mozambique
Swaziland
Thermal Southern Network
4
South Africa
Lesotho
SOUTHERN AFRICAN POWER POOL
Membership
No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Full Name of Utility
Botswana Power Corporation
Electricidade de Mocambique
Electricity Supply Corporation of Malawi
Empresa Nacional de Electricidade
ESKOM
Lesotho Electricity Corporation
NAMPOWER
Societe Nationale d’Electricite
Swaziland Electricity Board
Tanzania Electricity Supply Company Ltd
ZESCO Limited
Copperbelt Energy Corporation
Lunsemfwa Hydro Power Company
Zimbabwe Electricity Supply Authority
OP = Operating Member
ITC = Independent Transmission Company
IPP = Independent Power Producer
NP = Non-Operating Member
Status
OP
OP
NP
NP
OP
OP
OP
OP
OP
NP
OP
ITC
IPP
OP
Abbreviation
BPC
EDM
ESCOM
ENE
Eskom
LEC
Nam Power
SNEL
SEB
TANESCO
ZESCO
CEC
LHPC
ZESA
Country
Botswana
Mozambique
Malawi
Angola
South Africa
Lesotho
Namibia
DRC
Swaziland
Tanzania
Zambia
Zambia
Zambia
Zimbabwe
CEC and LHPC private companies admitted following SAPP reforms
5
SOUTHERN AFRICAN POWER POOL
2. DEMAND AND SUPPLY SITUATION
No.
Country
1
2
3
4
5
6
Angola
Botswana
DRC
Lesotho
Malawi
Mozambique
Utility
ENE
BPC
SNEL
LEC
ESCOM
EDM
HCB
7
Namibia
NamPower
8 South Africa
Eskom
9
Swaziland
SEC
10
Tanzania TANESCO
11
Zambia
ZESCO
12 Zimbabwe
ZESA
TOTAL SAPP
Total Interconnected SAPP
6
Installed Available
Capacity Capacity
[MW] As at
[MW]
Apr 2011 Apr 2011
Installed
minus
Available
[MW]
2010 Peak
Demand
[MW]
Capacity
Required
[MW]
10.2%
Reserve
Deficit
(MW)
1,202
190
1,170
72
300
174
2,075
360
41,074
70
880
1,215
1,320
197
12
1,272
59
33
3,096
228
597
725
56,321
50,102
6,219
45,721
50,385
(283)
53,514
47,720
5,794
43,488
47,924
(204)
1,399
202
2,442
72
300
233
2,075
393
44,170
70
1108
1,812
2,045
1100
553
1,081
121
300
560
564
36,705
204
833
1,600
2,100
SOUTHERN AFRICAN POWER POOL
MW
SAPP Planned & Required Gen. Capacity
80000
70000
60000
50000
40000
30000
20000
10000
0
Planned Capacity vs Forecast , MW
All SAPP Members
2010
2011
2012
GWh
Forecast
450000
400000
350000
300000
250000
200000
150000
100000
50000
0
2014
2015
2016
Capacity Planned
Energy Planned vs Forecast , GWh
All SAPP Members
2016
Critical
For
Energy
2010
2011
2012
Energy Forecast
7
2013
2014
Critical
For
Capacity
2013
2014
2015
2016
Energy Planned (GWh)
SOUTHERN AFRICAN POWER POOL
3. SAPP GENERATION MIX - Current
Available Capacity - 2010
Angola - 2%
DRC - 2.4%
Mozambique - 4.5%
South Africa - 82.5%
74.3% Coal
20.1% Hydro
8
4.0%
Nuclear
1.6%
Gas/Diesel
Zambia - 2.4%
Zimbabwe - 2.7%
Rest - 3.5%
SOUTHERN AFRICAN POWER POOL
Medium Term Outlook

Of the 28,462MW to be commissioned,
approximately 80% will be coal and 12% hydro.
Technology
Coal
%
22,786
80.1
Hydro
3,451
12.1
Gas
1,900
6.7
Diesel
160
0.6
Wind
165
0.6
28,462
100
TOTAL
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MW
SOUTHERN AFRICAN POWER POOL
Planned New Generation
 The SAPP PLAN shows that 56,686 MW of new
additional power generation capacity would be
required by 2025 as follows:
Technology
Capacity [MW]
Percentage [%]
Coal
23,883
42%
Hydro
18,045
32%
Nuclear
-
0%
2,164
4%
Diesel
12,594
22%
TOTAL
56,686
100%
Gas
 The optimized plan includes no new nuclear.
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SOUTHERN AFRICAN POWER POOL
SAPP Future Generation Mix
 In 2025, a total of 102,871 MW of generation
would be required in the SAPP as follows:
Technology
11
Capacity [MW]
Percentage [%]
Coal
57,415
56%
Hydro
27,016
26%
Nuclear
1,800
2%
Gas
2,732
3%
Diesel
13,908
14%
TOTAL
102,871
100%
SOUTHERN AFRICAN POWER POOL
4. TRANSMISSION PROJECTS
DRC
2013: ZIZABONA -220/330 kV
Tanzania
2013: Mozambique Malawi
2014: Zambia - Tanzania - 400 kV
Malawi
Angola
Zambia
2015:DRC - Angola – 400 kV
Zimbabwe
2016: MOZAMBIQUE BACKBONE -RSA
2015: RSA Strengthening
Namibia
Mozambique
Botswana
Swaziland
2017: Namibia – Angola
South Africa
12
Lesotho
SOUTHERN AFRICAN POWER POOL
5. DEMAND SIDE MANAGEMENT
5,000.00
HWLC
Demand Reduction [MW]
4,000.00
Commercial Lighting
SWH
CFLs
3,000.00
2,000.00
1,000.00
2009
2010
2011
2012
2013
2014
2015
Year

13
Four technologies were planned:
i.
Compact florescent lamps (CFLs)
ii. Solar Water Heaters (SWH)
iii. Hot Water Load Control (HWLC), and
iv. Commercial Lighting
In 2010, 750MW of
savings were realised
with CFL programme
against a target of
1400 MW
SOUTHERN AFRICAN POWER POOL
6. SAPP COMPETITIVE MARKET OVERVIEW

SAPP DAM Market opened for live trading on 15
December 2009

Market performance highlights as of 31st April
2011
14

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 SOUTHERN AFRICAN POWER POOL
Average Monthly Market Clearing Prices as of 31st Apr 2011
Average Market Clearing Prices (MCPs)
USD/MWhr
50.00
40.00
30.00
20.00
10.00
15
Apr-11
Mar-11
Feb-11
Jan-11
Dec-10
Nov-10
Oct-10
Sep-10
Aug-10
Jul-10
Jun-10
May-10
Apr-10
Mar-10
Feb-10
Jan-10
Dec-09
-
SOUTHERN AFRICAN POWER POOL
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
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SOUTHERN AFRICAN POWER POOL