Update on Regional Regulatory

Initiatives

By

Dr. Eng. Gloria Magombo

RERA Chairperson & ZERA CEO

Presentation for the 5th

High-Level Meeting of Regional Regulatory Associations of

Emerging Markets in Budapest, Hungary on 11 July 2017

1. About RERA

2. Status of the Establishment of Regulators

3. Electricity Tariffs in the SADC Region

4. Market and Investment Framework for SADC Power Projects

5. Regulatory Empowerment Project (REP)

6. Building Regional Climate Resilience through Electricity Trading and Related Infrastructure

7. USAID Southern Africa Energy Program (SAEP)

8. EU Capacity Building Programme

9. Concluding Remarks

Presentation Outline

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The Regional Electricity Regulators Association of

Southern Africa (RERA) was established by the SADC

Energy Ministers in July 2002 with the following

objectives:

1. Capacity Building & Information Sharing

2. Facilitation of ESI Policy, Legislation & Regulations

3. Regional Regulation Cooperation

RERA seeks to facilitate the harmonisation of regulatory

policies, legislation, standards and practices and to be a

platform for effective cooperation among energy

regulators within the SADC region

About RERA (1)

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Strategic Intents (2013 – 2017)

(in the order of priority)

1. Nurture a regional energy market that is efficient, harmonised, sustainable and able to attract investments

2. Develop the capacity of regulators

3. Promote universal access to modern/clean, cost effective and quality energy services

4. Position RERA to proactively influence developments in the energy sector

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About RERA (2)

Status of the Establishment

of Energy and Electricity

Regulators

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DR Congo Tanzania

Zambia

Angola Malawi

Zimbabwe

Mozambique Namibia

South Africa Lesotho

Swaziland

14/15 SADC countries have energy/electricity regulators – about 93% - 2 additional regulators have been established in Botswana & Mauritius

the DRC is the only remaining

country though at an advance

stage having passed the

enabling legislation and is

seeking technical assistance to

establish a Regulator

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Establishment of Regulators (1)

Botswana

Electricity Tariffs and

Migration towards Cost

Reflectivity in SADC

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• SADC Council endorsed that all SADC Member States

that have not taken all the necessary steps to reach full

cost recovery tariffs to do so by 2019

• Latest Tariff Report 2015 (in draft) produced by RERA

indicates that it is highly unlikely that most countries

would reach full cost recovery tariffs by 2019 to create a

sustainable regional power sector that is able to attract

(private) investment and promote energy efficiency

• However, the countries continue to make the politically

difficult decisions of offering government guarantees for

power projects and implementing the tariff adjustments

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Electricity Tariffs (1)

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Electricity Tariffs (3)

Market & Investment

Framework for SADC Power

Projects

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DR Congo Tanzania

Zambia

Angola Malawi

Zimbabwe

Mozambique Namibia

South Africa Lesotho

Swaziland

10/14 are Members of RERA and visits are planned to reach-out to the 4 regulators to be members by end of this year

3 are electricity regulators, 8 are energy regulators & 3 are multi-sector (energy/water) regulators

National Electricity Council of Mozambique has been transformed into an Energy Regulator (ER) and the Electricity Control Board of Namibia would be transformed into an ER by end of this year

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Establishment of Regulators (2)

Botswana

• Further support has been received from the U.S.

Department of State, Bureau of Energy and Resources

(DOS/ENR) to pilot/implement some near-term (short-

term) priorities in the M&I Framework in the following

three flagship SADC Member States that were

competitively selected:

Botswana (BERA);

Namibia (ECB); and

Zambia (ERB).

• South Africa (NERSA) is also participating as a

resource during the peer reviews

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Market & Investment Framework (1)

• As part of this support, RERA is also partner with

NARUC of USA to carry out some peer reviews in the

support of the implementation of the M&I Framework in

three pilot countries

first (of the three) peer review activity was in Windhoek,

Namibia from 10-12 April 2017 and focused on Open

Access & Wheeling

second (of the three) peer review activity is scheduled

to take place in Gaborone, Botswana from 11-13

September 2017 and will focus topics related to

Renewable Energy Integration

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Market & Investment Framework (2)

Regulatory Empowerment

Project (REP)

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• IRENA is providing support to RERA as part of the Regulatory Empowerment Project (REP) and Governance of Integrated Resource Plans (IRPs) is a first joint IRENA/RERA Project with a title “Planning Governance Project, PGP”

• PGP is in its final stages and regional workshop is tentatively scheduled to take place in November 2017 to the Draft Guidelines have been developed covering regulatory and utility aspects in planning

• The project will use two (2) Member States (Namibia & Zimbabwe) as pilots to assess readiness and capacity for conducting national power system planning

Regulatory Empowerment Project

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Building Regional Climate

Resilience through Electricity

Trading and Related

Infrastructure

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• The British Department for International Development

(DFID) funded a project through the Climate

Resilience Infrastructure Development Facility

(CRIDF) to enhance regional power pool

developmental planning through incorporation of

climate change factors such as:

– temperature increase;

– rainfall variability;

– impact on load forecast; and

– carbon dioxide (CO2) emissions.

Building Regional Climate Resilience (1)

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• This project has been completed and was officially

handed over to the SAPP in March 2017

• As part of the Project deliverables, a ‘Tool’ for the

integrated modelling to assess the impact of climate

change on long-term energy generation and

transmission planning for interconnected SADC

countries has been developed

• A regional training seminar on the use of the ‘Tool”

was conducted in February and March 2017 in

Pretoria, South Africa

Building Regional Climate Resilience (2)

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USAID Southern Africa

Energy Program (SAEP)

(March 2017 – March 2022)

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• A five (5) year USAID Southern Africa Energy Program

started in March 2017 designed to address the

following five (5) important aspects to investment in

the Southern African energy sector:

1. Improving regulation, planning and procurement for

energy

2. Improving commercial viability of utilities

3. Improving regional harmonisation and cross border trade

4. Demonstrating and scaling renewable energy and energy

efficient technologies and practices

5. Increasing human and institutional capacity

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SAEP (1)

EU Capacity Building

Programme

(2017 – 2020)

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• RERA and RAERESA, supported by the Secretariats of SADC and COMESA, have successfully mobilised the 4-year technical assistance of about EUR7 million from the European Union (EU) under the 11th EDF and the Agreement was signed on 30 May 2017

• Technical assistance is targeted at:

– developing regulatory frameworks to nurture a regional energy market that is efficient, sustainable, harmonised and able to attract investments and ensure universal access;

– strengthening RERA and RAERESA's capacity to proactively influence developments in the energy sector in the region;

– enhancing the capacity of Member State Regulators; and

– developing and enhancing the domestication of renewable energy and energy efficient policies and regulatory guidelines to promote investment in clean energy.

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EU Capacity Building (1)

• Proposed 2017/2018 Work Plan includes the following

initiatives:…….

– Developing the framework for regulatory oversight of the

regional market;

– Supporting the establishment of a regional autonomous

regulator for the SAPP (transformation of RERA into a

Regional Regulator);

– Long term technical assistance support to RAERESA and

RERA to implement the programme (capacitation of the two

Secretariats with experts over the 4-year period);

– Training, practical learning and exposure to international

regionally integrated energy markets through study tours;

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EU Capacity Building (2)

• Proposed 2017/2018 Work Plan includes the following

initiatives:…….

– Collaborating with the International Confederation of

Energy Regulators (ICER) under their programme Women

in Energy to promote capacity building through mentorship

in the region;

– Developing a synthesized renewable energy and energy

efficiency strategy for the ESA-IO region and ensure that it

is gender responsive;

– A regional workshop to accelerate progress on energy

efficiency policies and regulations;

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EU Capacity Building (3)

• Proposed 2017/2018 Work Plan includes the following

initiatives:…….

– Provide technical training on the supply side energy

efficiency and support limited technical advisory in

implementation of some measures using some countries in

the region as case studies; and

– Develop a communications strategy to sensitize energy

consumers about the importance of EE interventions and

practices.

• Implementation of the initiatives entails very close

cooperation/ collaboration with the SADC Secretariat, the

SAPP, SACREEE and other regional stakeholders

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EU Capacity Building (4)

Concluding Remarks

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• With the support from the cooperating partners,

RERA is poised to make strides in enhancing the

regional energy regulatory environment

• RERA looks forward to sharing information and

experiences with other Regional Regulatory

Associations (RRAs) in the implementation of the

regional regulatory initiatives

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Concluding Remarks

RERA Secretariat

Regional Electricity Regulators Association of Southern Africa (RERA)

Bonsec Heights, No. 6 Feld Street, Office No. 3

P. O. Box 23029

Windhoek

NAMIBIA

Tel: +264 61 221720

Fax: +264 61 223176 / +264 88 614252

Mob: +264 81 2271110

Email: secretariat@rerasadc.com

Web: www.rerasadc.com

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