eastern africa power pool - van der walt and...

EASTERN EASTERN

AFRICA POWER AFRICA POWER

POOLPOOL

EAPPEAPPPresentation to Afsec,Presentation to Afsec,

Standardization needs for Integration Standardization needs for Integration

of Power Pools of Africaof Power Pools of Africa

August, 2010, South AfricaAugust, 2010, South Africa

By Jasper OduorBy Jasper Oduor

ContentsContents

11-- IntroductionIntroduction

22-- Major activitiesMajor activities

33-- ConclusionConclusion

EAPP was conceived in May 2003 under the guidance EAPP was conceived in May 2003 under the guidance

of UPDEA, AFREC, UN ECA, COMESAof UPDEA, AFREC, UN ECA, COMESA

The InterThe Inter--Utility MOU was initialized in Nov 2003Utility MOU was initialized in Nov 2003

The InterThe Inter--governmental MOU was drafted in May 2004 governmental MOU was drafted in May 2004

in Kigaliin Kigali

In February 2005, under the hosting by UPDEA at the In February 2005, under the hosting by UPDEA at the

UNECA HQ in Addis Ababa, the MOU and the UNECA HQ in Addis Ababa, the MOU and the

organization structure was finalizedorganization structure was finalized

At this meeting, attended by UNECA, and organized by At this meeting, attended by UNECA, and organized by

UPDEA:UPDEA:

the location of the Headquarters was decided upon to the location of the Headquarters was decided upon to

be Addis Ababa, Ethiopiabe Addis Ababa, Ethiopia

the Signing of the Intergovernmental MOU (IGMOU) the Signing of the Intergovernmental MOU (IGMOU)

was done, was done,

and the first Chairman of the Conference of Ministers and the first Chairman of the Conference of Ministers

was elected to be the Minister for Energy in Kenyawas elected to be the Minister for Energy in Kenya

The current Chairperson is from RwandaThe current Chairperson is from Rwanda

Introduction Cont..Introduction Cont..

In May ,2005 in Cairo, Egypt, the interIn May ,2005 in Cairo, Egypt, the inter--utilities utilities

MoU’s were signed and the Steering Committee MoU’s were signed and the Steering Committee

became operational.became operational.

EAPP has subsequently been adopted as a EAPP has subsequently been adopted as a COMESA specialized institution and as a vehicle for the enhancement of COMESA specialized institution and as a vehicle for the enhancement of

energy Interconnectivity in the Regionenergy Interconnectivity in the Region by the by the Heads of State Heads of State

and Government at the 11and Government at the 11thth Summit of Comesa Summit of Comesa

in Djibouti in November, 2006.in Djibouti in November, 2006.

Comesa MOU cont…Comesa MOU cont…

The MOU with Comesa has provided the political The MOU with Comesa has provided the political

and organizational enablement to coordinate the and organizational enablement to coordinate the

works with all the countries in the Regionworks with all the countries in the Region

Main example is the work with RAERESA to Main example is the work with RAERESA to

ensure all countries participate in the development ensure all countries participate in the development

of an Independent Regulatory Bodyof an Independent Regulatory Body

EAPP has also signed a cooperation MOUs with EAPP has also signed a cooperation MOUs with

EAC, SAPP and WAPPEAC, SAPP and WAPP

OnOn--going negotiations on draft MOUs with going negotiations on draft MOUs with

CAPP and IGADCAPP and IGAD

..

Introduction Cont..Introduction Cont..

EAPP Member CountriesEAPP Member Countries

Current Members Countries:Current Members Countries:Burundi, DRC, Egypt, Ethiopia, Kenya, Rwanda, Sudan, Burundi, DRC, Egypt, Ethiopia, Kenya, Rwanda, Sudan,

Tanzania ( Tanzania joined March this year)Tanzania ( Tanzania joined March this year)

EAPP Member UtilitiesEAPP Member Utilities

REGIDESO of Burundi, SNEL of DR Congo, EEHC of Egypt, REGIDESO of Burundi, SNEL of DR Congo, EEHC of Egypt, EEPCO of Ethiopia, KenGen and KPLC of Kenya,EEPCO of Ethiopia, KenGen and KPLC of Kenya,

ELECTROGAZ of Rwanda, NEC of Sudan, Tanesco of ELECTROGAZ of Rwanda, NEC of Sudan, Tanesco of Tanzania and SINELAC of DR CongoTanzania and SINELAC of DR Congo--RwandaRwanda--Burundi.Burundi.

Potential Member CountriesPotential Member Countries

Uganda, Djibouti, Libya, EritreaUganda, Djibouti, Libya, Eritrea

Introduction Cont…Introduction Cont…

MISSIONMISSION

Facilitate and Secure power supply for Eastern Facilitate and Secure power supply for Eastern

Africa Countries members at the lowest costAfrica Countries members at the lowest cost

Introduction Cont…Introduction Cont…

VISIONVISION Promote power exchanges among the utilities in Eastern Africa by Promote power exchanges among the utilities in Eastern Africa by

developing master plandeveloping master plan

Optimize the usage of the existing and the potential energy resources in the Optimize the usage of the existing and the potential energy resources in the

regionregion

Reduce the electric cost in the regionReduce the electric cost in the region

Create, in the framework of NEPAD, a conductive environment for Create, in the framework of NEPAD, a conductive environment for

investment in integration projects in the fields of power generation and investment in integration projects in the fields of power generation and

transmission in eastern Africa countriestransmission in eastern Africa countries

Facilitate the development of electricity market in the regionFacilitate the development of electricity market in the region

Provide efficient coProvide efficient co--ordination between various initiatives taken in the fields ordination between various initiatives taken in the fields

of power production, transmission as well as exchanges in the Regionof power production, transmission as well as exchanges in the Region

Introduction Cont..Introduction Cont..EAPP ObjectivesEAPP Objectives

Secure power supply for the Region’s countriesSecure power supply for the Region’s countries

Facilitate in the long term development of electricity market in Facilitate in the long term development of electricity market in

the regionthe region

Optimize the usage of energy resources available in the Region Optimize the usage of energy resources available in the Region

by working out regional investment schemes in Power by working out regional investment schemes in Power

generation, transmission and distribution taking into account the generation, transmission and distribution taking into account the

sociosocio--economic and environmental aspectseconomic and environmental aspects

Increase power supply in the region in order to increase the Increase power supply in the region in order to increase the

access rate of the population to electricityaccess rate of the population to electricity

Reduce electricity cost in the Region by using power system Reduce electricity cost in the Region by using power system

interconnection and increasing power exchanges among interconnection and increasing power exchanges among

countriescountries

Organization Structure Organization Structure

2. Organizational structure and management systems

Management Structure of the Eastern Africa Power Pool

Independent Regulatory

Board

Steering Committee

Conference of Ministers

Permanent Secretariat

Technical Subcommittee, environment

Technical subcommittee,

Planning

Technical Subcommittee, Operation

Regional coordination

center

2.2. MAJOR ACTIVITIESMAJOR ACTIVITIES

Major ActivitiesMajor Activities

Technical Assistance and Capacity BuildingTechnical Assistance and Capacity Building ((EC EC FinancedFinanced))

Master Plan and Grid Code (Master Plan and Grid Code (NEPAD/IPPF managed NEPAD/IPPF managed by AfDBby AfDB))

Bilateral and Transmission Wheeling Agreements Bilateral and Transmission Wheeling Agreements ––Negotiations and AdoptionNegotiations and Adoption ((Possible Possible USAID/UNDESA financing. A follow up of Kigali / USAID/UNDESA financing. A follow up of Kigali / Kampala coordination MeetingsKampala coordination Meetings))

Development of Coordination and Dispatch Centre Development of Coordination and Dispatch Centre Infrastructure and also the Independent Regulation Infrastructure and also the Independent Regulation framework (framework (MFA Norway financingMFA Norway financing))

Major activitiesMajor activitiesEC ProjectEC Project

European Commission Financing (2.7M European Commission Financing (2.7M

Eur)Eur)

Overall objective

To strengthen the capability of the EAPP

Permanent Secretariat to contribute in the

improvement of the integration of the

electricity markets of the region with a view

to creating a regional electricity market.


Project componentsProject components

a.Preparation of the Eastern Africa Power

Market Development

b. Preparation of a strategic plan and

business plan

c. Power market rules and agreements for

cross-border trade


Project components:Project components:

d) Horizontal activities

• Establishment of a regional database on

power systems

• Twinning (coaching) arrangement with

advanced power pools

Trainings

Study tour

Stakeholders meetings


Regional Power Market DevelopmentRegional Power Market Development

• Analysis of the current power sector

situation and Implementing database

• Review of the existing studies about

Eastern Africa Power Development.

• Assessment of power market future

development, based on available studies


Preparation of a strategic plan and a business Preparation of a strategic plan and a business

planplan

Analysis of the current context of activities in

Eastern African Power Sector, including legal,

regulatory and institutional aspects, the tariff

policies and EAPP organization;

· setting up strategic objectives of the

EAPP organization and a roadmap towards

achieving the set objectives;


PreparingPreparing thethe actionaction planplan,, andand meansmeans toto

monitormonitor thethe performanceperformance ofof systemsystem operationsoperations

andand thethe orientationsorientations forfor thethe establishmentestablishment ofof aa

CoordinationCoordination CentreCentre

PreparingPreparing aa 33--yearyear businessbusiness planplan wherewhere actionsactions

areare describeddescribed inin detaildetail andand financialfinancial needsneeds andand

resourcesresources areare identifiedidentified andand quantifiedquantified..

Major activitiesMajor activities

EC ProjectEC Project

PowerPower marketmarket rulesrules andand agreementsagreements forfor crosscross--

borderborder tradetrade:: PreparationPreparation

- market rules (licensing, guidelines for tariff

setting

- Standard power purchasing agreement

- Standard agreement on power balancing

· - proposal for cost-based tariff-setting

- proposal related the legal/regulatory

framework

· -Treaty related to regional electricity trade


The project is scheduled to be completed by The project is scheduled to be completed by

January 2012January 2012

Major activities:Major activities:AfDB ProjectAfDB Project

NEPADNEPAD--IPPF/AfDB Financing ( 1.7 Mil IPPF/AfDB Financing ( 1.7 Mil

US$) US$)

- Drafting EAPP regional power system

master plan

- Drafting of electricity grid code for EAPP

Major activitiesMajor activitiesAfDB ProjectAfDB Project

The project commenced with the KickThe project commenced with the Kick--Off meeting is Off meeting is

on 5on 5thth October, 2009. Together with EACOctober, 2009. Together with EAC

The project is on scheduleThe project is on schedule

The project is planned to be completed by January, The project is planned to be completed by January,

20112011

Major activitiesMajor activities

UNDESAUNDESA

TwinningTwinning withwith otherother powerpower poolspools andand

StudyStudy ToursTours toto SouthernSouthern AfricaAfrica PowerPower

PoolPool;; WorkshopWorkshop onon AgreementsAgreements donedone..

PlannedPlanned trainingstrainings (capacity(capacity building)building) onon

FinancingFinancing ModelsModels forfor PowerPower Projects,Projects,

andand studystudy tourtour toto SIEPACSIEPAC ofof CentralCentral

AmericaAmerica andand PJMPJM ofof USAUSA

Major Activities:Major Activities:

USAID USD 2.4mUSAID USD 2.4m

Powering Power Progress ProjectsPowering Power Progress ProjectsFollowing on meetings in Rwanda and UgandaFollowing on meetings in Rwanda and Uganda

Power Market development workshop on 1Power Market development workshop on 1--5 February 5 February 20092009

Renewables and energy Efficiency Workshop in March Renewables and energy Efficiency Workshop in March 20102010

Powering Power Projects additional support EAPP and Powering Power Projects additional support EAPP and EAC prepare for Power Market and Power Trade. EAC prepare for Power Market and Power Trade. Consultant Nexant of USA. To ensure at least 3 PPA Consultant Nexant of USA. To ensure at least 3 PPA are driven to conclusion. To prepare Transmission are driven to conclusion. To prepare Transmission Interconnection StandardsInterconnection Standards

MFA Norway ProjectMFA Norway Project

USD 2.2MUSD 2.2M

Recruitment and training of staff for the CC and IRBRecruitment and training of staff for the CC and IRB

Installation and operationalization of the data base Installation and operationalization of the data base

Installation and operationalization of the Installation and operationalization of the

Communications InfrastructureCommunications Infrastructure

Facilitation of Institutional set up of the CC and the Facilitation of Institutional set up of the CC and the

IRBIRB

Project to be completed by Dec 2011 Project to be completed by Dec 2011

The KickThe Kick--off Meeting was on 2off Meeting was on 2ndnd Dec, 2009Dec, 2009

Inception Report for stakeholders held and final report Inception Report for stakeholders held and final report

being preparedbeing prepared

Transmission Lines StandardsTransmission Lines Standards

Grid Code developed by SNC Lavalin / PB Power Grid Code developed by SNC Lavalin / PB Power under Nepadunder Nepad--ippf financing under AfDBippf financing under AfDB

Transmission Standards by Nexant under USAD Transmission Standards by Nexant under USAD financed Powering Power Progress Projectfinanced Powering Power Progress Project

What needs to be done now? (Governor settings, AVR What needs to be done now? (Governor settings, AVR settings? Any common policy?)settings? Any common policy?)

Are we too late in anything? (Review the status of all Are we too late in anything? (Review the status of all the major interconnectorsthe major interconnectors

What needs to be done nationally so as to limit regional What needs to be done nationally so as to limit regional and national negative impact?and national negative impact?

Transmission Standards cont…Transmission Standards cont…

At the detailed design stage, need to agree on the At the detailed design stage, need to agree on the

transmission Standards.transmission Standards.

These must be common for all the African PoolsThese must be common for all the African Pools

Have the onHave the on--going projects considered this?going projects considered this?

What to be considered? ( Main interWhat to be considered? ( Main inter--connector connector

voltages, voltages tolerances, frequency limits, stability voltages, voltages tolerances, frequency limits, stability

criteria, protection relay settings and fault clearance criteria, protection relay settings and fault clearance

times, equipment specifications, undertimes, equipment specifications, under--frequency loadfrequency load--

shed schemes and islanding schemes)shed schemes and islanding schemes)

Design of the EAPP/EAC Design of the EAPP/EAC

Interconnection Code by SNC LavalinInterconnection Code by SNC Lavalin

Scope and Structure of the EAPP/EAC Interconnection CodeScope and Structure of the EAPP/EAC Interconnection Code

Glossary/definitionsGlossary/definitions

General ConditionsGeneral Conditions

Planning CodePlanning Code

Connections CodeConnections Code

Operations CodeOperations Code

Scheduling and Dispatch CodeScheduling and Dispatch Code

Data Exchange CodeData Exchange Code

Metering CodeMetering Code

Operator Training and Authorisation CodeOperator Training and Authorisation Code

ConclusionConclusion

The Policy, Legal, Regulatory and Institutional The Policy, Legal, Regulatory and Institutional

and Regulatory Frameworks to be ready for and Regulatory Frameworks to be ready for

power trade by 2013. Also the Roadmap / power trade by 2013. Also the Roadmap /

Strategic PlanStrategic Plan

Most Eastern Africa countries would have been Most Eastern Africa countries would have been

connected by 2014 ( 2 years slippage !!)connected by 2014 ( 2 years slippage !!)

The work of physical interconnections:The work of physical interconnections:

The NBI projects ( around Lake Victoria)The NBI projects ( around Lake Victoria)

EthioEthio--Sudan; EthioSudan; Ethio--Djibouti; EthioDjibouti; Ethio--Kenya; Kenya;

KenyaKenya--TanzaniaTanzania--( Zambia) are expected to have ( Zambia) are expected to have

been completedbeen completed

..

Thank you.Thank you.

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