2009年-世界发展银行全球_International_Experience_with_Cross-border_Power_Trading_82页_1mb

Summary of International Experience with Cross-border Power Trading

Core Content

This report evaluates international experiences with cross-border power trading to identify key lessons for Southern Africa. It highlights the importance of regulatory clarity, institutional empowerment, and the role of power pools in facilitating regional electricity trade.

Main Lessons for Southern Africa

1. Security of Supply Concerns Need to be Explicitly Addressed and Understood

• Key Point: Security of supply is a critical factor in cross-border power trading. It must be clearly defined and managed through contracts, grid codes, and bilateral agreements.
• Examples:
  • In Central America, firm supply contracts with explicit emergency provisions have been used to manage risks.
  • The Nam Theun 2 project in the Greater Mekong Subregion includes compensation mechanisms for performance failures.
• Southern Africa's Context:
  • Supply shortages in South Africa have impacted neighboring countries.
  • Clear contractual frameworks are essential to ensure reliability and trust between trading parties.

2. Regional Entities Must be Empowered to Make Decisions

• Key Point: Regional entities, such as power pools and regulatory bodies, need legal authority and decision-making powers to coordinate and manage cross-border transactions effectively.
• Examples:
  • In Central America, the "propose-respond" model allows for efficient decision-making.
  • West Africa's WAPP has stronger decision-making powers and accountability mechanisms.
• Southern Africa's Context:
  • SAPP and RERA face challenges in finalizing planning, pricing, and settlement rules.
  • A stronger legal framework, possibly through an amendment to the SADC Energy Protocol, could empower regional entities.
  • Establishing a steering committee with high-level officials may help delegate decision-making authority.

3. Bilateral Trading Can Provide an Important Basis for Expanding Cross-border Trading Volumes

• Key Point: Bilateral agreements can serve as a stepping stone for developing legal and physical infrastructure that supports larger regional trading.
• Examples:
  • The Greater Mekong Subregion transitioned from bilateral to multi-country trading, using the Nam Theun 2 project as a model.
  • The Mmamabula coal-fired power station in Botswana is an example of a bilateral deal that has led to new legal frameworks.
• Southern Africa's Context:
  • Most cross-border infrastructure in the region has been developed through bilateral arrangements.
  • Bilateral projects can help build trust and lay the groundwork for future multi-party initiatives.

4. Power Pools Can Help to Generate Sustained Increases in Cross-border Trading

• Key Point: Power pools play a crucial role in reducing transaction costs and promoting regional coordination.
• Examples:
  • In North America, NEPOOL has clear procedures for reviewing technical impacts of cross-border transactions.
  • WAPP in West Africa actively promotes investment in new generation and transmission facilities.
• Southern Africa's Context:
  • SAPP has not fully realized the potential of power pooling.
  • SAPP should adopt similar functions to WAPP and NEPOOL, such as reviewing technical impacts and monitoring member performance.

5. The Substance and Process of Regulatory Reviews Must be Clear

• Key Point: Clear and transparent regulatory processes are essential to create investment certainty and ensure the success of cross-border transactions.
• Examples:
  • North American regulatory processes are transparent and predictable, reducing investment barriers.
  • NERSA in South Africa has made progress in clarifying cost recovery mechanisms.
• Southern Africa's Context:
  • Regulatory entities need to provide more clarity on the substance and process of cross-border reviews.
  • Enhanced communication and collaboration with potential trading partners can help define regulatory expectations.

Key Information

• The report draws from four case studies: Central America, West Africa, North America (New England and Canada), and the Greater Mekong Subregion.
• These regions have developed various institutional frameworks, including power pools and regional regulatory bodies, to support cross-border trading.
• The legal and regulatory environment in these regions is more mature than in Southern Africa, particularly in terms of enforceable commitments and decision-making processes.
• The report recommends both near-term and long-term actions for regional entities in Southern Africa to improve cross-border trading.
• It emphasizes the need for a stronger regulatory and institutional framework to support the development of cross-border power projects.

Structure of the Report

• Section 1: Introduction and background on the project's objectives.
• Section 2: Overview of case studies, including economic, institutional, and power sector characteristics.
• Section 3: Summary of the five main lessons for Southern Africa.
• Section 4–7: Detailed case studies of each region.
• Appendices: Tables and figures that illustrate key data and concepts, such as the role of regional entities, power pool structures, and investment trends.

Conclusion

The international experience underscores the importance of addressing security of supply, empowering regional entities, and establishing clear regulatory processes to enable successful cross-border power trading. These lessons are tailored to the specific context of Southern Africa, with a focus on improving institutional and regulatory frameworks to support regional energy development.