SANF 08 No 07
SADC energy ministers are meeting in Botswana this week to monitor progress on implementation of power sector projects.
As southern Africa enters its second year of energy shortages, massive short-term projects of close to US$8 billion must be fast tracked over the next two years.
The SADC region, with some of Africa’s fastest growing economies, was projected to run out of surplus generation capacity from 2007.
Electricity shortages have in recent weeks severely affected several SADC Member States leading to scheduled, and in some cases unscheduled, power cuts.
The SADC Energy Ministerial Task Force monitoring progress on implementation of the power sector projects will meet in Gaborone on Thursday, preceded by a meeting of task force officials on Wednesday.
The SADC region plans to spend US$7.88 billion on short-term projects to boost power supplies over the next two years while a further US$32 billion is earmarked for longer-term electricity generation projects.
The regional network is administered by the Southern African Power Pool (SAPP) Coordination Centre in Harare. SAPP had predicted as far back as 10 years that the combined power generation reserve capacity in the region would be lower than the peak demand by 2007.
In response, SADC Member States have initiated a number of short, medium to long term generation projects as well as some rehabilitation projects that will guarantee the region the much needed energy security.
SADC member states agreed last year to fast track short-term generation projects, which will add 6,700 megawatts (MW) by 2010 to the regional power grid.
Current installed capacity in the region is 53,000 MW of which dependable capacity is only about 41,000 MW against demand of 42,000 MW.
The region requires a reserve margin of 10 percent if its economies are to operate smoothly.
Several SADC countries are beginning to feel the effects of the critical shortage of electricity, which is blamed on a lack of demand management and thus inadequate generation capacity to meet the demands of the region’s fast-growing economies, as predicted by SAPP a decade ago.
From last year, load shedding has been introduced in countries such as Namibia, South Africa, Zambia and Zimbabwe.
Regional economic powerhouse South Africa, as well as Zambia and Zimbabwe have experienced severe blackouts in early 2008.
In Zimbabwe, power blackouts have disrupted industry and commerce, and affected the country’s telecommunications network.
South Africa has been among the hardest hit countries, forcing key players in the mainstay mining sector to temporarily shut down operations in January until the power supply situation has stabilised.
South African industrialists say the power shortages are costing them billions of rands, especially the mines and smelters which are significant consumers of the country’s electricity. Mining accounts for about 15 percent of South Africa’s electricity demand.
The mining sector is the pillar of Africa’s largest economy, contributing a significant proportion of South Africa’s Gross Domestic Product, and employs the largest number of people.
South Africa’s mining sector employs about 460,000 people but indirectly supports about five million people, according to statistics cited last year by the country’s Chamber of Mines.
The big mining groups, including Anglo Platinum, Impala Platinum, Northam Platinum, Lonmin, Gold Fields, Harmony Gold, De Beers and Merafe Resources, have reported a halt to some or all activities, while the smaller groups continue to operate.
Neighbouring countries such as Botswana, Namibia and Swaziland, which relied on South Africa for their energy supplies, have had to turn to other sources in the region.
Swaziland, which imports 80 percent of its electricity from South Africa, has initiated talks with Mozambique; while Namibia and Zimbabwe have put in place a power-sharing deal that involves Namibian investment of US$40 million in the refurbishment of the Hwange power station.
In a major development for the southern African region, Mozambique recently took over ownership of the giant Cahora Bassa Dam and the hydroelectric power company from former colonial power, Portugal.
Mozambique exports Cahora Bassa-generated electricity to neighbouring countries including South Africa and Zimbabwe.
