A policy perspective for an integrated regional power pool within the Africa Continental Free Trade Area. (September 2021) - Odetayo, Babatunde
Abstract: The Africa Continental Free Trade Area presents an opportunity for the creation of a single continental electricity market in Africa. This market has the potential to promote the efficient development of electricity infrastructure and symbiotic electricity trading between members of Africa's five regional electric power pools. A framework is proposed to harness the opportunities presented by the African Continental Free Trade Area through the coordination of technical and commercial endeavors of the regional power pools in Africa. This includes fostering sharing mechanisms of best practices that support the development of national and international institutions, harmonizing regulations and grid codes, and promoting electricity trading opportunities that will catalyze the development of inter-regional infrastructure projects. In this paper, the authors propose a bilateral contract market that aligns with and complements the existing regional power pools without encumbering them with unnecessary bureaucracy. The paper's policy recommendations are designed to promote proactive adoption and compliance with the recommended best practices, market rules and regulations by market participants, motivated by their self-interests. Highlights: Promotion of electricity access in Africa under the auspices of AfCFTA. A bilateral contract market to facilitate electricity trade within the AfCFTA. The AfCFTA bilateral contract market to complement the regional power pools. Proposed hybrid of the institutional framework from the regional power pools.