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At the recently held Africa’s Green Economy Summit (AGES), experts highlighted the importance of interconnected, cross-border energy trade The role of power pools in trying to bridge electricity access gaps in Africa is becoming increasingly more relevant in this Age of Electricity (as the IEA calls it). At the recently held Africa’s Green Economy Summit (AGES) 2025 in Cape Town, experts highlighted the strides being made towards a more interconnected, efficient and sustainable power sector across the continent. Central to the conversation was the role of Africa’s power pools in driving economic growth, ensuring energy security and fostering the integration of renewable energy sources. Power pools are regional mechanisms that coordinate electricity generation and transmission across multiple countries. Wilson Masango, Chief Engineer of Markets at the Southern African Power Pool (SAPP), reflected on the evolution of power markets in the region. “We started with bilateral trading, which laid the foundation for our interconnected grid. Over time, we have developed a more competitive market, introducing intraday and forward markets, weekly and monthly contracts, and even a balancing market,” he explained. “The key to our success has been cooperation and strong political support at the highest levels.” Also, the West African Power Pool (WAPP) is at an exciting juncture, with active trading set to commence on its new market platform. Abdulkadir Nazif, Director of the Information and Innovation Centre (ICC) at WAPP, acknowledged the challenges of building such a system from scratch. “We have spent years designing market rules, harmonising regulations and setting up the infrastructure necessary for seamless trade,” he noted. “In hindsight, we should have tailored our integration approach to individual country readiness instead of moving forward as if all nations were at the same stage.” Lessons from established markets SAPP has been successfully operating a day-ahead market for over 15 years (it went live in December 2009) and serves as a model for newer initiatives. The Eastern Africa Power Pool (EAPP), which recently commissioned its own market trading platform, has taken valuable lessons from SAPP. In December 2024, the 13 EAPP countries announced a plan to launch a centralised Day Ahead Market (DAM) in 2025 – a regional energy trading initiative expected to benefit more than 620 million people. The announcement was made on the opening day (9 December) of the EAPP Regional Trade Conference in Mombasa, Kenya. |
