– COMESA, AfDB commits to play role in realising dream
NKOMBO KACHEMBA
Lusaka
ENERGY experts estimate that about US$150 billion is needed to meet the energy demand in the Common Market for Eastern and Southern Africa (COMESA) region.
According to the specialists, the cost of generating one megawatt (MW) of electricity is US$1.5 million and the region needs an additional 100,000MW to meet the deficit.
COMESA says installed capacity of electricity in the region is 100,000MW, with energy access estimated around 50 to 60 percent.
With a population of 560 million and a combined gross domestic product (GDP) of US$768 billion, the region has to double its installed capacity to cover 80 percent of its population in terms of access.
This calls for investments in power generation infrastructure, which could be costly and a drain on the member states’ coffers.
Spending US$150 billion on power generation entails contracting more debt and reducing social sector spending on key sectors such as education and health.
But energy consultant in the COMESA region Mohamedain Seif Elnasr says the solution to developing the energy infrastructure in the COMESA region is regional integration.
COMESA’s mandate is to promote regional integration through trade and development of natural and human resources for the mutual benefit of all people in the region.
Dr Elnasr said advancing the regional integration agenda could help improve trade in the energy sector.
He said countries with sufficient energy generation capacity can export to member states experiencing power deficits to avoid spending on infrastructure.
In Africa, Egypt is one of the leading energy producing countries, with output of 22,853 gigawatts hour, while other countries in the region, especially those in central Africa, depend on hydro and experience power deficits due to effects of climate change.
With development of energy infrastructure, Egypt can export power to countries with low energy output.
“To produce one megawatt of electricity, you need about US$1.5 million to US$2 million; it all depends on the technology you are using.
This is a huge amount in terms of investment that is required. These are indicative figures. For us to reach 80 percent access to electricity in the COMESA region, we need about US$150 billion.
“Finance is very expensive; we need people to think innovatively outside the box.
In order to get out of this situation, we need to enhance regional integration. Regional integration will expose you to resources of other countries in the region,” he said.
Dr Elnasr said countries in the COMESA region stretch from north to south, giving new opportunities in terms of resources.
“In the Sahara, there is solar, in the coastal area, you will find wind energy, in the Middle East, you find geo-thermal, in the central, you have hydro, so this regional integration provides us with an opportunity to have that proper energy mix,” he said.
He said people can import and export electricity within the region to meet the power deficit in their respective countries.
countries.
“Today it can be the peak period in Zambia, but off-peak in Ethiopia. When Zambia is off-peak, it can export power to Ethiopia. So if we enhance regional integration, we will be able to adequately utilise our resources and defer investments,” he said.
To facilitate trade, there is need to build more power interconnectors to wheel electricity from one country to another.
Electricity interconnectors are high-voltage cables which connect electricity systems of neighbouring countries for trade facilitation.
They are critical in power trade because they connect different regions to one energy grid.
“We have to link our interconnectors in order to have one grid from Cape Town to Cairo, to Tripoli to Tunisia. We need to work on the missing links,” Dr Elnasr said.
He said there is need to link the Eastern Africa Power Pool (EAPP) to the Southern Africa Power Pool (SAPP) to facilitate export and import of power within the region.
One of the major projects which is being undertaken to improve interconnectivity is the Zambia-Tanzania-Kenya (ZTK) interconnector.
It is a tripartite project ofCOMESA, East African Community and Southern Africa Development Community (SADC) that will link the EAPP and the SAPP.
The implementation of the project started in 2014 after the signing of the inter-governmental memorandum of understanding between the respective countries.
The European Union (EU) provided seed capital of €4.4 million for preparatory activities.
The scope of work includes the construction of 2,300 high-voltage transmission lines and associated substations from Kabwe in Zambia, through Tanzania and terminating at Isinya in Kenya, at an estimated cost of US$1.2 billion.
On the Zambian side, the line will pass through Kabwe, Mpika, and Kasama to Nakonde border post (Tunduma), which is about 1,000km.
In Tanzania, which is the longest section, the line passes through Mbeya, Iringa, Dodoma, Singida, Shinyanga, Arusha and terminates at Namanga on the border with Kenya.
“Zambia has to look for finance to complete the works on its side, and once that is done, power can move from EAPP and to SAPP,” Dr Elnasr said.
Some energy companies in the private sector have also been investing in inter-connectors to service their markets in other COMESA member states.
In Zambia, Copperbelt Energy Corporation (CEC) has built an interconnector linking its energy systems to Société Nationale d’Électricité (SNEL) in the Democratic Republic of Congo (DRC).
The transmission line was first built in the 1950s, but an investment of about US$20 million was made to increase the transmission lines to three.
“The ambitious project, aimed at enhancing transfer capabilities, has been meticulously planned and divided into two phases. The initial stage, set to conclude in the first quarter of 2024, will witness a significant boost in transfers, reaching 340MW. The second phase is slated to commence in the course of 2024, with the primary objective of further augmenting transfer capacity to 400MW,” CEC head of corporate communication Verona Nkolola said.
To facilitate energy trade and infrastructure development in the region, COMESA has been harmonising policies and regulatory frameworks.
Through the RegionalAssociation for Energy Regulation in Eastern and Southern Africa (RAERESA), a specialised agency under COMESA, the regional bloc has been promoting integration and investments in the energy sector by creating a harmonised regulatory environment.
Dr Elnasr, who is also RAERESA chief executive officer, said the regional association has managed to come up with a COMESA
Model Energy PolicyFramework, which gives guidelines to member states on the implementation of energy projects.
“When member states are formulating their energy policies, they have to use some of the guidelines stipulated in the regional policy. This has helped to promote the harmonisation of policies,” he said.
Dr Elnasr said the specialised agency also came up with the Association of Energy Regulators for Eastern and Southern Africa (AERESA) to harmonise regional regulatory frameworks and facilitate for the formulation of energy regulatory bodies.
He said some countries in the region did not have regulatory bodies and, with support from the European Union (EU), RAERESA came up with a number of guidelines to help in that area.
Zambia now has the Energy Regulation Board (ERB) and it is currently undertaking interventions to promote regional trade in the energy sector.
Some of the interventions include the development of Open Access rules for the electricity subsector and participating in the harmonisation of grid codes and technical standards.
Other countries which have regulators include Kenya, Egypt, Rwanda, Botswana and Zimbabwe, among others.
Dr Elnasr said it was difficult for the region to attract investments in the sector because the policies and regulatory frameworks were not harmonised.
Recently, COMESA launched a US$1.5 million project called Regional Harmonisation of Regulatory Frameworks and Tools for Improved Electricity Regulation in COMESA.
The objective of the project, funded by the African Development Bank (AfDB), is to stimulate crossborder electricity trade and
improve energy access in the COMESA region.
“While the AfDB continues to finance key regional power inter-connectors across the continent to boost regional electricity trade, the Bank is equally committed to complementing that effort with soft infrastructure initiatives on harmonisation of policy and regulatory frameworks,” AfDB country manager Raubil Durowoju remarked during the launch of the initiative.
COMESA Secretary General Chileshe Kapwepwe also observes that under-developed regulatory frameworks and the absence of a framework for monitoring progress complicates implementation modalities and inhibits investment decisions in electricity infrastructure projects.
However, the regional body has made strides in harmonising the policies and regulation frameworks.
The onus is now on member states to take advantage of the harmonised policies to improve power trade in the energy sector.
