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Frost & Sullivan: Development of Power Pools Within Sub-Saharan Africa Offers Greater Supply Security

May 24, 2010

CAPE TOWN, South Africa, May 24 /PRNewswire/ — The development of regional power pools within sub-Saharan Africa has the potential to secure electricity supply across the continent. However, there is a current lack of regulatory procedures and legal framework for the coordination of infrastructure development.

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“Africa still needs to develop international electricity trade mechanisms outside of the Southern African power pool to support electricity trade,” says Frost & Sullivan Energy Research Analyst Ross Bruton. “Nonetheless, substantial demand for electrification and the pressing need for the security of power supply in the continent represent primary driving forces for power pool development in the region.”

New analysis from Frost & Sullivan (http://www.energy.frost.com), The Sub-Sahara African Power Pools, provides insight into the development of the regional power pools with regards to generation and electricity interconnection infrastructure, current electricity trading per power pool and regulatory documentation and the organizations needed for optimal power pool development and operations. The study covers power generation; power interconnection and transmission; and electricity trade.

If you are interested in more information about this study, please send an e-mail to Patrick Cairns, Corporate Communications, at patrick.cairns@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

“Power pool development within sub-Saharan Africa is expected to create a more attractive market to foreign direct investment due to the development of an international, competitive market for energy trade,” says Bruton. “The development of this market is expected to increase the availability of funds for large scale power generation projects in areas that represent substantial amounts of passive energy resources.”

Although the development of the regional power pools holds great potential to influence the security of electricity supply in sub-Saharan Africa, the current deficit in spare generation capacity of member countries as well as national transmission and distribution infrastructure severely limits the ability for international electricity trade. Before the true advantages of a power pool system can be realized, infrastructure development needs to occur not only in power interconnection of countries, but also at a national level.

“In order for power pool development and implementation to be truly effective, generation, transmission and distribution infrastructure in member countries needs to progress to a point where a viable market for electricity trade exists,” explains Bruton.

Governments and regulatory bodies need to ensure that there is a clear master plan for the development and implementation of the power pools. This plan needs to be monitored and enforced by experienced and independent regulatory and legal bodies both at a national and international level. This will assist in the development of investor confidence in the region, creating more disposable funds, skills and assets for infrastructure development.

“Governments will need to make a commitment to upholding this legal and operational documentation in order for foreign investor confidence to be assured,” notes Bruton.

The Sub-Sahara African Power Pools is a part of the Market Insights – Energy & Power subscription, which also includes research on BIPV: Global Perspective and Future Market Growth in Europe, Oil and Gas Industry – Overview of Major Indicators, Small Wind Turbines Market in Europe – Top-level Assessment, European Stationary Fuel Cells – Technological Trends and Market Development, Snapshot of the Landfill Gas Market in the United States, Oil and Gas Industry – Overview of Major Indicators, among others. These Market Insights are part of Frost & Sullivan Growth Partnership Service.

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The Sub-Sahara African Power Pools

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    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27 18 464 2402
    E: patrick.cairns@frost.com

http://www.frost.com

SOURCE Frost & Sullivan


Source: newswire