Regional power pool operationalisation steps away

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Eastern African Power Pool (EAPP) have met in Kampala today (Wednesday) to discuss the last stages before electricity trade among member countries commences.

Representatives of the 13-member power trading bloc are in Kampala for a two-day strategic meeting that is expected to deliver final agreements on the modalities towards operationalisation of the Day-Ahead market. The meeting started on Thursday.

According to officials, the day-ahead market is aimed at creating an auction system where countries with surplus electricity are able to trade with other countries that are in need.

Key among the final modalities in the establishment of the market and trading unit, an independent body that will oversee the daily trading of electricity among member countries. It’s one of the final steps that have had to be taken towards the realisation of the pool.

The Eastern Africa Power Pool (EAPP) is a regional body established in 2005 to coordinate cross-border power trade and grid interconnection among member countries.

Current member countries include Burundi, Djibouti, Democratic Republic of Congo (DRC), Rwanda, Egypt, Ethiopia, Kenya, Sudan, Tanzania, Uganda, Libya, South Sudan and Somalia.

The power pool is yet to take effect 20 years since its formation, and as such, electricity trade among the member countries is based on bilateral agreements, something the World Bank says costs the region an estimated $8b (sh29.3 trillion).

In September last year, the Council of Ministers, EAPP’s top governing body, resolved to establish the independent market operator to initiate market operations activities, marking a significant step towards achieving a transparent and resilient energy market in the region.

Establishment of the market and trading unit is one of the final steps that have had to be taken towards the realisation of the pool.

Since then, technical deliberations have been ongoing, and progress made towards the realisation of this goal is the major point of discussion.

“Coming to the specifics of the 32nd Steering Committee meeting, we have several submissions to consider today, most importantly the market rules, agreements and procedures which have passed through final review by the legal working group and experts from regulatory authorities.

Eng. Richard atsiko, UETCL Deputy Managing Director, speaks during the opening of the two-day meeting at Kampala Serena hotel on Wednesday. (Photo by Benon Ojiambo)

Moreover, the steering committee is expected to consider a proposal for the designation of the EAPP market operator bank and an interim arrangement to operationalise the market and energy trading unit of the EAPP general secretariat,” Eng. Richard Matsiko, the Uganda Electricity Transmission Company Limited (UETCL) deputy managing director, said.

UETCL is the government agency representing Uganda in the power pool and regional power trade. Matsiko represented the UETCL managing director, who chairs the steering committee that in turn reports to the Council of Ministers.

“I, therefore, humbly request fellow steering committee members to deliberate and agree on a report pertaining to the completion of the final review of the Day-Ahead electricity market rules, procedures and market participation agreement,” Matsiko said.

Okaasai Opolot, Uganda’s Minister of State for Energy speaks during the opening of the two-day meeting at Kampala Serena hotel on Wednesday. (Photo by Benon Ojiambo)

Uganda’s energy state minister while opening the meeting, Okaasai Opolot, urged the steering committee to build on the achievements that have been registered so that the region enjoys the full benefit of enhanced regional electricity trade as soon as possible.

“As you are aware, that requires a focused approach by all stakeholders on issues that bring tangible benefit to the region, for example, what should we do to raise the current level of trade and generation capacity in the region by 100%?

To that end, I expect the 32nd Steering Committee Meeting to have an effective deliberation on the submissions, with a focus on issues that matter, and come up with clear recommendations to the COM the following day,” Opolot said.

The Independent Regulatory Board (IRB), the regulatory arm of the power, which is hosted in Kampala, is expected to be commissioned on Thursday.