2009年-世界发展银行全球_The_Potential_of_Regional_Power_Sector_Integration___Cahora_Bassa_Generation_Case_Study_34页_947kb

Summary of Cahora Bassa Power Sector Integration Case Study

Core Content

The Cahora Bassa hydropower project is a key example of regional power sector integration in Southern Africa. Located on the Zambezi River in Mozambique, the project is one of the largest hydroelectric facilities in the region, with a capacity of 2,075 MW and annual generation of 13,000 GWh. It was originally designed to supply electricity to South Africa through a 1,400 km HVDC transmission line, with a smaller portion allocated for domestic use in Mozambique.

The project was conceived during Portuguese colonial rule and was initially a demonstration of Portugal's commitment to Africa and its colonies. After Mozambique gained independence in 1975, the project continued under the newly formed Mozambique government, but faced significant challenges due to the civil war, which disrupted operations and led to the sabotage of HVDC lines in 1981. The lines were only restored in 1998 after a long rehabilitation process.

Main Points and Key Information

Motivations and Objectives for Trade

• The project was intended to supply low-cost electricity to South Africa, avoiding the environmental and resource pressures of coal-fired power stations.
• It also aimed to demonstrate Portugal's involvement in African development and to support economic growth in its colonies.
• Initially, the project was designed to meet South Africa's demand, with a small portion allocated for Mozambique's domestic use.

Trade Solution and Infrastructure

• The HVDC transmission line was the primary infrastructure for exporting power to South Africa.
• During the civil war, the line was sabotaged, and exports were halted for over 17 years.
• In 1997, a 400 kV HVAC line was built to supply power to Zimbabwe, which became an early customer before South Africa's exports resumed in 1998.
• Power is also supplied to Mozambique via direct connections and a buy-back arrangement with Eskom.

Ownership and Financial Arrangements

• The project is operated by Hidroeléctrica de Cahora Bassa (HCB), initially majority-owned by Portugal.
• In 2007, the Mozambique government acquired majority ownership of HCB for US$950 million, after a 90% write-down of the outstanding debt to Portugal.
• The project was initially financed by a consortium of international engineering firms, with significant support from Anglo American and its merchant bank, Union Acceptances.

Tariffs and Pricing

• Electricity tariffs in the SAPP region are generally low and not cost-reflective, leading to underinvestment and inefficiencies.
• In 2008, the average final user tariff in Mozambique was between 6.5 to 7.5 US cents per kWh.
• South African tariffs, while higher in local currency, have remained relatively low in USD terms, making it difficult for regional generators to compete with local supply.
• The long-run marginal cost of electricity from new coal or nuclear plants is estimated to be significantly higher than the current export tariffs.

Current Status and Future Plans

• HCB currently operates at full capacity, supplying power to South Africa (55% or 1,150 MW), Zimbabwe (ZESA), and Mozambique (EDM).
• There is a 300 MW buy-back arrangement from Eskom to supply Maputo.
• Future plans include the development of additional hydropower capacity on the Zambezi River, such as the Mpanda Uncua and the north bank power station at Cahora Bassa, with a target of at least 850 MW.
• The ultimate capacity of Cahora Bassa is expected to reach 3,300 MW.

Institutional and Regulatory Arrangements

• The project involves multiple stakeholders, including national governments, regional institutions like SAPP, and regulatory bodies such as RERA and CNELEC.
• The Permanent Joint Commission (PJC) was established in 1984 to facilitate coordination between Mozambique, Portugal, and South Africa.
• The project's success is attributed to the institutional arrangements that enabled cross-border cooperation and the establishment of a framework for electricity trade.

Challenges and Obstacles

• Political instability, including the Mozambique civil war and the apartheid regime in South Africa, significantly impacted the project's development and operation.
• Security concerns and the lack of experience with cross-border energy trade in South Africa initially resisted the project.
• The economic crisis in Zimbabwe from 2000 onward affected its ability to pay for imported electricity, despite its continued reliance on Cahora Bassa.

Environmental and Social Considerations

• The project has had significant environmental and social impacts, including the creation of one of Africa's largest artificial lakes, which has affected local ecosystems and communities.
• The dam's construction and operation were linked to the broader development of the Zambezi Valley, with the goal of stimulating economic activity through electricity exports.

Conclusion

The Cahora Bassa project illustrates the complexities and challenges of regional power integration, particularly in politically unstable and resource-constrained environments. It highlights the importance of institutional cooperation, secure infrastructure, and sustainable tariff structures in enabling successful cross-border electricity trade. The project's evolution from a colonial initiative to a regional asset underscores the transformative potential of power sector integration in promoting economic development and energy security across Southern Africa.