April 2013
THE REGIONAL competitive electricity market is expected to record some significant improvement following the signing of a three-year agreement between Norway and the Southern African Power Pool to support the energy trading market.

The agreement, jointly funded by Norway and Sweden, is worth NOK35.25 million (about US$6.14 million) and covers various activities, including implementation of the regional competitive electricity market as well as capacity-building and software issues regarding energy trading.

Other activities such as the implementation of energy generation projects to boost production in the region, and building more transmission interconnections will also be covered under this agreement. The project will run from January 2013 to February 2016.

The competitive electricity market, commonly known as the Day Ahead Market (DAM), allows SAPP member utilities to sell surplus electricity to others, and meet shortfalls through purchases from others.

It is administered by the SAPP Coordination Centre in Harare, Zimbabwe. SAPP is a regional body that coordinates the planning, generation, transmission and marketing of electricity on behalf of member state utilities in southern Africa.

The agreement was signed on 27 February in Gaborone, Botswana, by Lawrence Musaba, SAPP Coordination Centre Manager and Tove Bruvik Westberg, Ambassador of Norway to Mozambique. The signing ceremony was witnessed by members of the SADC Energy Thematic Group who met earlier the same day.