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Gibson Mhaka
ENERGY is undoubtedly a critical component in any country’s development plan as it underpins its socio-economic growth. Reports that the Southern African Development Community (Sadc) region is facing a massive power deficit and that it should brace for increased electricity shedding between now and 2018 due to lack of investment and implementation of regional power projects make a sad reading.

Although access to clean water, nutritious food and basic healthcare for all are some of the high priority targets by the international community, there is also need for them to shift focus to major investment in energy so that developing countries have access to affordable and sustainable electricity.

This is so because 15 years ago when the United Nations came up with the Millennium Development Goals (MDGs) they prioritised and directed lots of international aid to issues to do with poverty, hunger, health and education in developing countries apparently at the expense of energy.

This is so because load shedding and power-rationing have become the order of the day in most Sadc countries and energy experts argue that the development has crippled economic growth, since most of the economic drivers, for instance manufacturing, require uninterrupted power supply.

There is no doubt that when the UN is considering the next set of targets for 2015-2030, vigorous investment in energy and power generation should also be among the top targets particularly in the Southern African region which is experiencing massive power generation constraints and where only about five percent of rural areas access to electricity have.

Regional energy experts noted that there is need to invest more in energy and power generation as it is key to unlocking the region’s potential economic growth. Southern Africa is rich in natural energy sources. With abundant hydro power potential in the north, vast coal fields in the south and oil reserves off the west coast there is a definite potential to supply low cost energy in coming years.

Addressing delegates at the recently held Regional Energy Regulators Association for Southern Africa (Rere) in Victoria Falls, which was running under the theme, “Leverage the Sadc Region’s Energy Potential through an integrated approach”, the Southern African Power Pool Coordination Centre manager Lawrence Musaba said the region was facing significant challenges in energy development and usage. He, however, said energy projects were not properly packaged due to a lack of funding.

“Power deficit in Sadc started in 2007 and at the moment we’re commissioning projects that generate 1,100 megawatts yearly while the demand for energy is rising. Before the World Cup in 2010 power demand was 4,6 percent and is now averaging five percent. In between now and 2018 load shedding in the region will continue due to lack of implementation and delays to implement other projects in the region.

“By 2018, all the countries in Sadc need to have an integrated approach to address power constraints in the region. Our planned generation for the period 2014-2018 stands at 28,000MW. By 2016, we should be getting out of the deficit if the projects are implemented. There’s need for the region to implement the planned projects. The region has installed generation capacity of 58 Gigawatts and what is available is 51 GW,” said Musaba.

In recognising the fundamental role of energy in accomplishing its goals, in 1996, Sadc passed the Protocol on Energy, which provides a framework for cooperation on energy policy among Sadc member states. The Protocol on Energy acknowledges the importance of energy in pursuit of the vision of Sadc of economic well-being and poverty eradication in Southern Africa.

The need by African countries to invest more in the energy sector was also once made by President Mugabe in 2012 when he addressed the Africa Energy Summit in Dubai, United Arab Emirates. President Mugabe underscored the right of nations to pursue peaceful nuclear options for power generation. He said it was disheartening to note that Africa was “a case of energy underdevelopment and energy under consumption”.

He said: “The billion-strong African continent accounts for a mere three percent of global power consumption. Per capita electricity we’re told is about 60KWh compared to 8,000kWh in the United States of America. These figures tell a story of energy poverty on the sunny continent of Africa, on a continent of roaring rivers, huge coal reserves and significant oil, and natural gas deposits.”

President Mugabe, who is also the Sadc chairman, said Africa’s marginalisation in the global economy replicated itself in the continent’s marginalisation in the energy front.

“We’re exporters of primary energy, which is why pipelines and ships daily cart crude oil from the continent for refinement elsewhere in the developed world before the same commodity comes back to us as a huge fossil energy bill which we can hardly afford.

“Inga Dam in the Democratic Republic of Congo could easily light up the whole continent if fully developed. My own country Zimbabwe, sits on huge coal deposits we can’t harness. We also sit on significant deposits of methane gas which remain unexploited. I’m happy to indicate that a number of projects are under discussion in the region which should see us embark on cleaner interstate energy projects for our region,” observed President Mugabe.

There have been some efforts in addressing these energy challenges through agreements and policy documents that are continually signed by member states to create a beneficial environment for energy trade and relations within the region, yet these kinds of efforts have yet to yield practical results of indisputable energy cooperation in the region.

Cases in point are strategic plans like the Southern African Power Pool in 1995, Sadc Energy Cooperation Policy and Strategy in 1996, the Sadc Energy Action Plan in 1997, the Sadc Energy Activity Plan in 2000, which did not bring much change and improvement in the Sadc energy market as envisaged apparently because of poor commitment by member states to implement them.

Studies have shown that member states generally fail to comply with the regional energy guidelines because they are more driven by achieving domestic national interest than regional obligations. For example, power trade in the Sadc region is dominated by bilateral agreements instead of multilateral agreements.

Member states are much more comfortable in making long-term power purchase agreements bilaterally to secure their energy interest outside the regional value chain. By failing to act in the regional interest, including building the infrastructure and implementing regional plans, Sadc states are showing poor commitment to regional integrated energy policy.

Renewable energy sources is one area that energy experts believe has practical solution to the region’s energy constraints.

Zimbabwe is writhing from crippling energy deficit and the main power utility Zesa Holdings is reportedly generating about 1,300 MW of electricity against a national demand of more than 2,000MW. The energy sector, it is believed, has the potential to contribute over 30 percent of foreign earnings and 25 percent to Gross Domestic Product (GDP) if properly harnessed, hence there is need by the government to intensify investments in the energy sector as the current state of affairs constrained economic development.

As part of its efforts to improve electricity generation through both hydro and thermal power stations, Zimbabwe reportedly received a $108 million grant from the African Development Bank (AFDB). The money will be used to repair Kariba Dam which generates most of the country’s power and to fix electricity transmission lines.

There is no doubt that this is a positive development which will go a long way in improving the power situation in the country since about 58 percent of Zimbabweans still lack access to electricity, according to 2012 data by the International Energy Agency.

Zimbabwe is also working on a host of public and private expansion projects expected to add 1,500 megawatts to the national grid. The major projects are Kariba South Hydro Power Station (300MW), Hwange Thermal Power Station expansion (600MW) and construction of the Gwayi-Shangani Thermal Power Station (600MW) all scheduled for completion in 2018.

China Africa Sunlight Energy (CASECO), which won the bid to construct the $2 billion Gwayi-Shangani Thermal Power Station, has reportedly completed clearance works at the site with actual construction expected to commence in July this year.