Regional power trade up

> Tichaona Kurewa

HARARE- REGIONAL electricity trading on the competitive market increased significantly among member states sparked by excess generation in some countries and under generation in others during peak and off-peak hours.

Statistics released by the Southern Africa Power Pool (SAPP) under Day Ahead Markets (DAM), Intraday Market (IDM) and Forward Physical Monthly Market (FPM-M) schemes show that electricity trading increased by 20 percent to 131,521 megawatts hours (MWh) in last month from the September figure of 109,612 MWh.

SAPP said in terms of participation, there were 10 active portfolios from nine members during last month compared to September in which there were 12 active portfolios from nine members.

“Total traded volumes on Forward Physical Monthly Market were marginally higher in October 2016 at 7,460 MWh. This figure represents an increase of 9.7 percent or 660 MWh from the September traded volumes of 6,800 MWh. The total energy that was matched in the month of October 2016 in the FPM-M decreased by 5.9 percent or 29,287 MWh to 207,887MWh from the September 2016 volume of 178,600 MWh,” SAPP said.

According to SAPP, trade in the IDM in October 2016 was significantly higher at 17,725 MWh – an increase of 7,658 MWh or 76.1 percent from the September volume of 10,067 MWh.

“Buy bids in IDM decreased by 39.2 percent from 48,201 MWh in September 2016 to 29,319 MWh in October 2016. Sale offers increased by 71.7 percent from 20,640 MWh in September to 35,437 MWh in October 2016,” it said.

It said under DAM, 96,775.70 MWh were traded on this platform, registering a 14.7 percent increase in traded volumes compared to the September figure of 84,384.3 MWh.

“There were more sale offers than buy bids received in October 2016 in the DAM trading platform. A total of 521,247 sale offers and 468,523 MWh buy bids were received in October 2016. There was an increase of 128,662 MWh or 32.8 percent in sale offers received in October 2016 when compared to September sale bids of 392, 585 MWh. There was a decline of 29,287 MWh or 5.9 percent in buy bids received in October 2016 when compared to September 2016 buy bids of 497,810MWh,” SAPP said.

According to SAPP, 72.8 percent of the total energy that was traded (9,560 MWh) was for the off-peak period and the remainder was for the peak (23 percent) and standard (4.2 percent) periods.  Figures released by SAPP also shows that the average monthly market clearing price (MCP) was slightly lower during the month of October 2016 at 6.305 USc/ kilowatt hour (KWh) when compared to the 9.165 USc/KWh recorded in September 2016.

“A total of US$10,290,241.62 was exchanged on the DAM, IDM, FPM-W and FPM-M market during the month of October 2016 when compared to a total of US$10,155,198.92 exchanged in September 2016. The Increase is mainly attributed to the increase in traded volumes,” SAPP said.

SAPP was created to provide reliable and economical electricity supply to the consumers of each of the SAPP members, consistent with the reasonable utilisation of natural resources and the effect on the environment.

It is in the process of changing from operating in a cooperative pool to a competitive pool. With the current installed generation capacity amounting to 58,000 MW, the region still faces a deficit due to the electricity demand and the reserve required.

Most Southern African countries are making strides to improve power generation in the region with numerous projects at various levels of completion in the Southern African Development Community.

In 2016, Southern Africa planned to commission new power projects that are expected to add 3,059 megawatts, as the region targets to ensure that it meets its energy requirements by 2020.

November 2016
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