The SADC Energy Ministerial Task Force (EMTF) on Implementation of Power Sector Programmes convened an emergency meeting at Boipuso Hall in Gaborone, Botswana on the 21st February 2008. In the absence of the Chairperson of SADC EMTF, the Minister of Mines and Energy of the Republic of Namibia, Mr. Erikki Nghimtina, the meeting was Chaired by Honourable Michael Nyambuya, Minister of Energy and Power Development of the Republic of Zimbabwe and opened by Honourable P. H. K. Kedikilwe, Minister of Minerals, Energy and Water Resources, Botswana. The Executive Secretary of SADC, H.E. Dr. Tomaz Salomao also gave brief remarks on the status of the power supply situation in the SADC region.
The Ministerial Task Force meeting was preceded by preparatory meetings of the members of the Southern African Power Pool (SAPP), the Regional Electricity Regulators Association (RERA) and other parties on 19th February 2008 and Senior Energy Officials on 20th February 2008.
The Ministers registered their recognition of the high electricity demand which has outstripped supply due to, among other factors, the positive economic growth which averaged about 5% in most of the SADC Member States and rural electrification projects in most Member States.
The Ministers noted the current status of power supply within the region, which has an installed capacity of 54,742 MW of which only 46,391 MW is available. Although new generation amounting to 1,810 MW has been commissioned in the region in 2007, the reserve margin is still in deficit against a required reserve margin of 10.2%. The situation will continue until 2013 when all planned generation projects are commissioned.
The Ministers reviewed the status of implementation of SAPP generation, transmission and interconnector projects which are categorized as rehabilitation and related infrastructure, short term, medium term and long term projects. These projects require a total of US$46.4 billion. In addition to these projects, the Ministers noted progress made on the Western Corridor Project (WESTCOR).
The Ministers took cognizance of the proposed short-term measures being instituted by Member States and SAPP to overcome the diminished surplus installed capacity and the expected impact of these measures on the power supply situation. These measures include respective utilities’ short term projects, ESKOM’s Recovery plan and power capacity being availed by Mozambique for export to the rest of the region. The Task Force noted that ESKOM through the Recovery Plan has achieved a 10% load reduction in South Africa, a reduction of power supplied through bilateral contracts by 10% and a saving of 600 MW in ESKOM demand specifically in the Western Cape. In Mozambique the Ministers noted that HCB has recently concluded a rehabilitation project on all units, resulting in the availability of the units increased to 90%, which has released 300MW to be used on non-firm basis to alleviate the crisis that the region is facing.
Following the understanding that the SADC region is undergoing a power emergency situation, the Ministerial Task Force adopted a road map to accelerate the region’s recovery from this power shortage through ensuring the effective connectivity of the interconnectors, as well as Supply Side and Demand Side Management initiatives as follows:
- A Power Conservation Programme (PCP) be formulated and implemented as a SADC programme
- a SADC policy be developed to ensure efficient use of electrical energy;
- development of a minimum energy efficiency standard for all new electrical connections
- phasing out of incandescent light bulbs in preference to Compact Fluorescent Lights (CFLs)
- direct the recapitalization of power utilities
- implementation of renewable energy technologies
In addition to the initiatives above, the Ministerial Task Force noted that an enabling environment is indispensable to accelerate private sector participation and additional investment in the power sector. In order to achieve an enabling environment the SAPP will
- work towards the harmonization of national electricity policy frameworks;
- accelerate the pace of Electricity Supply Industry (ESI) reforms to improve governance and performance;
- develop and implement the necessary national policies and promulgate legislation that will ensure:
- promotion of power conservation practices;
- provide financial and fiscal incentives to the Utilities for Demand-Side Management (DSM)
- adopt and implement principles of cost reflective tariffs to allow utilities and Independent Power Producers (IPP) to recover production costs and allow for recapitalization.
The Ministerial Task Force noted that in addition to the supply side and demand side issues, the power sector is facing additional challenges in financing of power projects and institutional arrangements for implementation. The Ministers therefore agreed on the following actions:
- Commission a study to recommend a financing model for cross border projects
- SADC/SAPP to assume a direct responsibility for coordinating and monitoring project implementation
- Member States should make full use of project preparation facilities to package projects
- SADC should follow up on international pledges made to finance NEPAD regional projects
The Ministerial Task Force considered and approved structures for implementing projects, which include SADC Ministers responsible for Energy with ultimate oversight on the Power Sector Projects Road Map, the Energy Ministerial Task Force, to review the pace of implementation of projects; the SADC Secretariat Project Coordination Unit, to be responsible for strategic coordination of implementation of infrastructure projects, which includes, project development, packaging, monitoring and reporting process in conjunction with the Member States, SAPP, RERA and Key International Partners. Project Teams and Project Steering Committees will undertake day to day implementation and review of specific projects.
In addition to the above structures, the Ministerial Task Force agreed to strengthen SAPP to ensure that it has adequate capacity to facilitate the implementation of the Roadmap; and RERA to undertake capacity building within the regulatory and institutional framework to ensure that an enabling environment continues to obtain. In addition SAPP and RERA was given new mandate to champion regional power projects in conjunction with Member States.
The Ministerial Task Force underscored the importance of the proposed measures as a response to address the emergency situation. They impressed upon the SADC Secretariat, SAPP and RERA, supported by the utilities and other cooperating partners, the need to have clear milestones and timeframes for the proposed measures so that their status of implementation is measurable. In their reaffirmation for the support for the proposed measures the Task Force took note of the report of the SADC Secretariat on the Madagascar Power Sector and that the proposed solutions for Madagascar are very similar to those made for the rest of the SADC Member States.
The Task Force noted with appreciation the reassurance by South Africa that she will honour her contractual obligations with regard to the power supply to the rest of the region.
In conclusion and following the offer by RSA to host the next Energy Ministerial Task Force Meeting at a date to be determined during the SADC Energy Ministers meeting to be held 30th April 2008 in DRC, the Ministerial Task Force conveyed their appreciation to the People and Government of Botswana for the conducive environment which led to the successful outcome of the meeting, the SADC Secretariat and the Ministry of Minerals, Energy and Water Resources of Botswana for the preparations they made for the meeting and all the stakeholders for their continued support.
Boipuso Hall, Gaborone,
21 February 2008
