2. SOUTHERN AFRICAN POWER POOL SAPP REPORT TO 5 TH COORDINATION MEETING OF POWER POOLS IN AFRICA Harare, ZIMBABWE 6-7 May 2010

3. SOUTHERN AFRICAN POWER POOL CONTENT S 1. Installed and Available Capacity 2. Commissioned Projects in 2009 3. Planning for 2010 4. Rehabilitation & New Projects 5. SAPP Mandate 6. SAPP challenges

4. SOUTHERN AFRICAN POWER POOL 1. INSTALLED & AVAILABLE CAPACITY

5. SOUTHERN AFRICAN POWER POOL  SADC region currently has an available capacity equivalent to 48,849 MW.  This gives annual shortfall of 1,248MW for 2010.  Power shortfall will persist until 2013 provided that: Generation projects under construction are completed and commissioned as planned.

6. SOUTHERN AFRICAN POWER POOL  Planned supply in 2010 will be coming at a time when Southern Africa will be hosting the 2010 FIFA World Cup: SAPP is adequately prepared and will provide a dependable & reliable supply to the event. 2. COMMISSIONED PROJECTS IN 2009

7. SOUTHERN AFRICAN POWER POOL A total of 933 MW expected in 2010 Target is 2,200 MW 3. PLANNING FOR 2010

8. SOUTHERN AFRICAN POWER POOL 4. REHABILITATION & NEW PROJECTS

9. SOUTHERN AFRICAN POWER POOL Planned Generation Projects – 2011

10. SOUTHERN AFRICAN POWER POOL Planned Generation Projects – 2012

11. SOUTHERN AFRICAN POWER POOL Planned Generation Projects – 2013

12. SOUTHERN AFRICAN POWER POOL Planned Generation Projects – 2014

13. SOUTHERN AFRICAN POWER POOL Planned Generation Projects – 2015

14. SOUTHERN AFRICAN POWER POOL Rehabilitation & New Generation Projects, MW

15. SOUTHERN AFRICAN POWER POOL New Generation Projects - Technologies

16. SOUTHERN AFRICAN POWER POOL Completed Interconnections (1) Since 1995, the following transmission lines have been commissioned by the SAPP: 1. The 400kV Matimba-Insukamini Interconnector linking Eskom of South Africa and ZESA of Zimbabwe in 1995. 2. The 400kV Interconnector between Mozambique and Zimbabwe was commissioned in 1997. 3. BPC Phokoje substation was tapped into the Matimba line to allow for Botswana’s tapping into the SAPP grid at 400kV in 1998. TRANSMISION PROJECTS

17. SOUTHERN AFRICAN POWER POOL 4. Restoration of the 533kV DC lines between Cahora Bassa in Mozambique and Apollo substation in South Africa was completed in 1998. 5. 400kV line between Camden in South Africa via Edwaleni in Swaziland to Maputo in Mozambique in 2000. 6. 400kV line between Arnot in South Africa and Maputo in Mozambique in 2001. 7. 400kV line between Aggeneis in South Africa and Kookerboom in Namibia in 2001. 8. 220kV line from Zambia to Namibia in 2007. Completed Interconnections (2)

18. SOUTHERN AFRICAN POWER POOL  Priority Interconnector Project for SAPP  Project to bring regional diversity in resources  Project to transmit power in both directions in future  Time difference of East and Southern Africa an advantage for power exchanges  Project to interconnect SAPP and EAPP.  Project is part of regional integration ZAMBIA TANZANIA KENYA INTERCONNECTOR

19. SOUTHERN AFRICAN POWER POOL  Power supply options supplied by SAPP especially from Zambia  Power Purchase Agreements and electricity tariff structure needs to be agreed  Consideration for 400 kV AC and or HVDC interconnection options ZAMBIA TANZANIA KENYA INTERCONNECTOR - STATUS

20. SOUTHERN AFRICAN POWER POOL  Project Management Unit (PMU) to be set up by 3 Governments  Feasibility studies being updated  Transaction Advisor appointed  Financial closure – Sept 2011  Target commissioning – 2014 ZAMBIA TANZANIA KENYA INTERCONNECTOR - STATUS

21. SOUTHERN AFRICAN POWER POOL Transmission Projects 2012: Mozambique Malawi 2015:DRC - Angola – 400 kV 2014: Z -T & T- K - 400 kV DRC Tanzania Angola Zambia Malawi Mozambique Zimbabwe Botswana Namibia South Africa Swaziland Lesotho 2010 -2011: ZIZABONA -220/330 kV 2015: MOZAMBIQUE BACKBONE -RSA 2015-2025: 765 kV Strengthening 2015: RSA Strengthening 2015: Botswana Strengthening Kenya

22. SOUTHERN AFRICAN POWER POOL BURKINA FASO INTERCONNECTING POWER POOLS IN AFRICA SAPP SOMALIA CONGO ALGERIA MOROCCO TUNISIA MAURITANIA GUINEE SENEGAL GAMBIA SIERRA LEONE LIBERIA LESOTHO SWAZILAND MOZAMBIQUE MADAGASCAR MALAWI TANZANIA KENYA OUGANDA R. B. ETHIOPIA DJIBOUTI ERITERA GUINEE-BISSAU COMORES SAO TOME & PRINCIPE LIBYA NIGER MALI COTE D’IVOIRE GHANA TOGO BENIN GUINEE EQ. TCHAD SUDAN RCA NIGERIA ANGOLA RSA BOTSWANA CAMEROUN GABON RD CONGO NAMIBIA ZIMBABWE ZAMBIA EGYPT COMELEC WAPP EAPP (+ RDC, Rwanda, Burundi) CAPP POWER POOLS IN AFRICA

23. SOUTHERN AFRICAN POWER POOL COORDINATION CENTRE STRUCTURE Coordination Centre Manager Chief Engineer (Grid Services) Chief Market Analyst ( Market Dev & Operations) Energy Trading Officer System Planning Engineer System Operations Engineer Power Pool Market Analyst IT Specialist Finance and Administration Officer Clerical Officer General Worker Environmental Officer Current establishment (9 out of 12)

24. SOUTHERN AFRICAN POWER POOL  Advisory, surveillance and monitoring role  Central function for DAM trading and wheeling and loss charges calculation Mandatory to use SAPP CC figures Invoicing done by CC for DAM Wheeling settled bilaterally  Promote projects on behalf of Members.  Seek project preparatory funds for Members SAPP COORDINATION CENTRE ACTIVITIES

25. SOUTHERN AFRICAN POWER POOL  To fulfil SAPP Mission and Objectives set by the Board.  To facilitate the development of a competitive electricity market. SAPP MANDATE

26. SOUTHERN AFRICAN POWER POOL  Shortage of generation surplus capacity in SADC  Electricity reforms in most countries  Promotion of independent country plans instead of regional coordinated plans.  Regional Project Implementation  Policy and Legislation differs between SAPP countries  Harmonisation of regulatory rules  Skills retention SAPP CHALLENGES

27. SOUTHERN AFRICAN POWER POOL Thank You