Electricity Market Design for African Power Pools
Msc thesis defense presentation: The situation of power system reforms in Africa displays incomplete reform steps and unfulfilled goals. The performance statistics of the power system are very low and tremendous efforts remain to be exerted to bridge the gap. Reforms in Africa were pursued with the end goal of creating an electricity market on both the national and the regional levels. While none of African countries’ experiences was successful in creating a national market, the regional efforts succeeded in creating a regional competitive market. Currently in Africa, five power pools are under development for creating regional markets that cover the entire continent of Africa. These power pools are in different stages of development and little attention has been given to study them. Our research aims to provide for the first time a thorough understanding of the function and the factors that shaped the development of African power pools. Through a comparative case study, we investigate the three biggest and most advanced power pools in Africa to answer the question of "How can the design of regional power pools in Africa be adapted to facilitate the sustainable energy transition, improve service quality and economic efficiency?". In this research, we provide a comprehensive understanding of African power pools by building on market design theory and integrating the theories of organization, capacity building, and regional integration. Based on theory and our empirical findings, we formulate a framework that explains the factors and dynamics of developing and designing regional power pools. The report concludes with a series of policy recommendations for the different actors and recommendations for further research.
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Electricity Market Design for African Power Pools
- 1. Electricity Market Design For African Power Pools Taking Stock, Looking Ahead MSc Thesis Defence 8 July 2021 MSc: Sustainable Energy Technology Supervisor: Dr.ir L.J. (Laurens) de Vries Co-Supervisor: Dr. A.F. (Aad) Correljé Mohamed A.Eltahir Elabbas
- 2. Case Studies Problem Analysis Regional power pools SAPP, WAPP, EAPP Studying regional power pools Development and performance Introduction Outline 01 Methodology Research framework 03 Conclusion Unlock the potential 02 01 04 05 06
- 3. 02 Introduction P A R T 1
- 4. Introduction 03 Cross-border power exchange Regional power pools A group of two or more utilities that coordinate their operation and planning Regional Market
- 5. Introduction 04 Regional Markets National Systems Steps Generation Transmission Distribution Consumption National markets Monopolistic utility Consumption Harmonization Coordination Planning Regulation Market rules Coordination Planning Procedures Developed Developing
- 6. Introduction 05 • Maghreb Electricity Committee (COMELEC) • Eastern African Power Pool (EAPP) • Central African Power Pool (CAPP) • West African Power Pool (WAPP) • Southern African Power Pool (SAPP) Developing regional Markets Why? Regional Economic Communities (RECs) • UMA • COMESA • ECCAS • ECOWAS • SADC
- 7. 06 Proble m P A R T 2
- 8. Problem 07 1 2 3 Lack of information Lack of understanding Lack of methodology How can the design of regional power pools in Africa be adapted to facilitate the sustainable energy transition, improve service quality and economic efficiency?
- 9. 08 Methodolog y P A R T 3
- 10. Methodology 09 Framework Development Hybrid market framework Desk Research Interviews (12) Theories Explanatory Comparative Case Studies Pragmatic View
- 11. Methodology 10 Three layers Three driving forces
- 12. 11 Case Studies P A R T 4
- 13. 1995 Council of Ministers RERA Day-Ahead Market Intra-Day Market Forward Physical Market 17 Market Participants Case Studies 12
- 14. 1999 General Assembly ERERA 77% for the regional market 36 Market Participants Case Studies 13
- 15. 2006 Council of Ministers IRB 14 Market Participants 2005 Case Studies 14
- 16. RECs Infrastructure Dominant country National systems Similarities Case Studies 15 1 2 3 4
- 17. 16 Analysi s P A R T 5
- 19. Analysis 18 SAPP EAPP WAPP Physical Context Economic Context Institutional Context Political Context Exogenous Factors Quantitative Qualitative
- 20. Analysis 19 Private Sector Participation Regulation Power Pool National systems
- 21. Analysis 20 Activities orientation Organizational capacity Governance structure Stakeholder relationships Financing arrangements Staff capacity Technical readiness Dispute resolution A C F B D E
- 23. 22 Conclusion P A R T 6
- 24. Conclusion 23 Regional power pools in Africa are a way for top-down development for national systems Alignments
- 25. Thank you for your attention! 24 Questions!