From 21-22 October, the Southern African Power Pool (SAPP) has convened a two-day market sounding event to gather stakeholder feedback on six proposed new market products that could strengthen regional electricity trading, support renewable energy integration and advance electricity market development across Southern Africa.
The event brought together 110 stakeholders on-site, with a further 120 joining online for a total of 230 participants. Representatives from utilities, electricity traders, independent power producers, financial institutions, governments, regulators and other regional stakeholders contributed their perspectives on market demand, commercial viability, readiness for implementation, and the technical, regulatory and institutional requirements for the proposed products.
The work is jointly driven by the African Union, the African Union Development Agency (AUDA-NEPAD) and German Development Cooperation (GIZ), with funding from Germany’s Federal Ministry for Economic Cooperation and Development (BMZ). As part of the programme “Accelerating the Energy Transition in Africa” (#ENGAGE), the partners aim to improve the institutional and regulatory framework conditions for renewable energy investment and access, advancing the vision of a continental African Single Electricity Market (AfSEM) through power pools’ role in regional electricity trade and integration.
Next to the African Union Commission, and AUDA-NEPAD, the SAPP market sounding event was attended by regional institutions like the Southern African Development Community (SADC) Secretariat, and the Regional Energy Regulators Association of Southern Africa (RERA). Their involvement reflects the importance of regional alignment in advancing electricity market integration.
SAPP’s stakeholder consultations focused on six products currently undergoing prefeasibility assessments:
- Renewable Energy Certificate (REC) Market
- Green Day-Ahead Market
- Regional Carbon Market
- Regional Electricity Financial Market
- Regional Ancillary Services Market
- Resale of Unused Firm Transmission Capacity
Following technical presentations and interactive sessions on each proposed product on day one, the second day used moderated panels to delve into market readiness, regulatory and institutional arrangements, commercial considerations and priorities for implementation.
Discussions highlighted the importance of sequencing market reforms in line with regional market readiness, while addressing regulatory and institutional gaps and constraints in transmission infrastructure. Stakeholder feedback provided valuable insights into which products should be prioritised and how their development could be aligned with the region’s evolving electricity market.
Through the ENGAGE programme, GET.transform is providing technical assistance to SAPP to assess the feasibility of the six proposed market products. This support aims to advance regional electricity market development, facilitate cross-border electricity trading and enable greater integration of renewable energy.
The initiative contributes to broader regional and continental efforts to strengthen electricity trade, improve market efficiency and integrate renewable energy into interconnected power systems. It aligns with the objectives of the African Single Electricity Market (AfSEM) and the Continental Power System Masterplan (CMP), which aim to advance electricity market integration and strengthen interconnections across Africa.
Feedback gathered through interactive polling, and panel discussions will inform the ongoing prefeasibility assessments and the further refinement of the six proposed market products.
By engaging market participants early in the development process, SAPP and its partners are helping to identify practical pathways towards a more efficient, interconnected and sustainable regional electricity market.
