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Private Sector Participation in Clean Energy Development, Management and Operations

The focus of this USAID funded multi-year initiative was to increase the knowledge and skill base of USAID's local partners to increase access to environmentally sound energy in USAID client countries. As part of this program, CORE provided services in developing and implementing programs in professional training, public education, and communication and outreach. In all of the activities, CORE was tasked to work with USAID-assisted countries that are transforming their electric power systems, including focusing on delivering electricity to populations that are currently not served.

Regional Electricity Market and Trading Southern African Power Pool

The Southern African Power Pool (SAPP) was created in 1995 with the primary aim of linking all twelve member countries into a common market electricity grid. The overarching goal of SAPP is to extend the provision of reliable and affordable power supply to consumers. The vision of SAPP is (i) to facilitate the development of competitive electricity markets in the region, (ii) to give the end- user a choice of electricity supply, and (iii) to help attract investment in the energy sector. While progress has been slow, grid interconnections have gradually increased and nascent short-term competitive energy markets are now operating.

However, the development of a modern and efficient SAPP trading system remains hampered by a number of issues. For example, power sectors in most SAPP countries continue to exist as government monopolies, wherein subsidies are commonplace, utility companies frequently do not recover the cost of provision, and debt levels are unsustainably high. Basic maintenance is often not undertaken and technical and non-technical losses are high. In this environment, the smooth development of a regional trading market is made difficult. Additionally, while an increasing volume of trade has been brought into the formal trading process of the SAPP, many trading arrangements in the region still take place outside of the SAPP mechanisms. Conversely, in some cases, it can be found that initial SAPP rules have become outdated as state monopolies have begun to restructure their organizations into separate generation, transmission and distribution functions and as power markets become more integrated and competitive.

CORE worked with the SAPP member countries in providing training courses, workshops, and roundtables on issues related to SAPP's functions and goals. These activities involved extensive participation by senior utility executives, policy makers, and regulators from ten of the 12 SAPP member countries.

CORE organized and conducted six program activities - (i) privatization, regulatory reform, sector restructuring, and competition in supply, and environmental issues in the power sector within a restructured market; (ii) the nature and benefits of electricity trading for national power systems, electricity trading exercises, and the mechanics of trading in other countries; (iii) best practices in system-wide transparency and efficiency gains for SAPP countries to better utilize their power system resources; (iv) the role of the regulators and senior policymakers in SAPP member countries on issues surrounding power trading; (v) trading and financial settlements for electricity traders; (vi) advanced trading methods and collaboration among traders. Report on Private Sector Participation in Clean Energy Development, Management, and Operation.(PDF)

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