Southern Africa
(SADC) Last Updated: June 2006 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Background | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
The Southern African Development Community’s (SADC) ultimate goal is to raise the living standards of all people in the region. To achieve this goal, SADC members are working to develop and integrate their economies in order to eradicate poverty. |
The Southern African Development Coordination Conference (SADCC),
which evolved into the Southern African Development
Community (SADC), has been in existence since 1980. The
original nine member-countries were Angola,
Botswana, Lesotho, Malawi, Mozambique, Swaziland, Tanzania, Zambia, and
Zimbabwe. South
Africa joined SADC in 1994 followed by Mauritius (1995), and
the Democratic Republic of Congo (DRC, 1997). In 2005, SADC granted
Madagascar membership. In addition to belonging to SADC, Angola, DRC,
Madagascar, Malawi, Mauritius, Swaziland, Zambia and Zimbabwe are members
of the Common Market for Eastern
and Southern Africa (COMESA).
In order to facilitate development in the region, member-states in
SADC formulated various objectives which the community works to achieve.
Among those objectives are the promotion of regional economic integration,
creation of intra-governmental policies, and sustainable utilization of
natural resources. In addition to the broader objectives of SADC, the
region’s Trade
Protocol calls for member-states to further liberalize
intra-regional trade, while eliminating trade barriers in order to
establish a Free Trade Area (FTA) by 2008. The creation of the FTA is part
of a strategic plan announced by the SADC executive secretary in 2004,
which also includes the establishment of an SADC customs union by 2010, a
common market pact by 2012, and establishment of an SADC central bank and
preparation for a single SADC currency by 2016.
ECONOMIC OVERVIEWIn 2005, the combined Gross Domestic Product (GDP) for SADC was
approximately $330.1 billion (see Table
1). South Africa, the region's most developed economy, had GDP
of $239.4 billion, which is more than double the combined GDP of other
SADC countries. In 2005, GDP growth rates in SADC ranged from -10.3
percent (Zimbabwe) to 15.9 percent (Angola), while the weighted average
GDP growth rate was 5.7 percent in the region. Poverty is one of the major
challenges facing SADC, with 70 percent of the population living on less
than $2 per day.
ENERGY OVERVIEWThe SADC Energy
Protocol outlines the various principles and objectives that
the region has towards energy. Chief among those is SADC’s desire to use
energy to support economic growth and development in the region. Overall,
SADC is a net energy exporter. In 2003, the countries belonging to SADC
collectively consumed (see Table
2) 5.9 quadrillion British thermal units (Btu) (1.4 percent of
total world consumption) and produced 8.5 quadrillion Btu (2.0 percent of
total world production). The region's
dominant economy, South
Africa, accounted for 83 percent (4.9
quadrillion Btu) of the region's energy consumption, 69.8 percent (5.9
quadrillion Btu) of its energy production, and 88.8 percent (112 million
metric tons) of its CO2emissions.
Throughout the region there are significant reserves of coal,
petroleum, and natural gas. Electricity in SADC is generated mainly
through thermal or hydroelectric resources. Natural gas is becoming more
significant to the region's energy sector as Mozambique, Namibia, South
Africa and Tanzania develop natural gas fields in their respective
countries. Due to the region's relatively small urban population
(approximately 25.4 percent), access to commercial energy sources is
limited. The majority of SADC's population still relies on the use of
biofuel as its primary source of energy.
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Because of Angola’s large oil production, the SADC region is a net petroleum exporter. |
Angola, Southern Africa's only significant oil producer, produced an
average of 1.25 million barrels per day (bbl/d) of oil in 2005 (see Table
3). According to Oil and Gas
Journal (OGJ), Angola has
proven crude reserves of 5.4 billion barrels, which constitute 96 percent
of the region's total estimated proven crude reserves. Smaller proven
reserves are found offshore DRC and South Africa. The region's refineries
are concentrated in South Africa, with additional refining capacity
located in Angola, Madagascar, Tanzania and Zambia. South Africa is the
region's largest oil consumer (over 68 percent of the region's total), and
the second largest oil consumer in Africa after Egypt.
Exploration and
ProductionAngola Crude oil production in Angola has quadrupled over the past twenty
years. One of the largest production areas is Block Zero, located offshore
of the Cabinda province. In 2005, Chevron began production at its Sanha
natural gas complex and Bomboco oil field, both of which are located in
Block Zero. Chevron is also working to bring its Benguela, Belize, Lobito,
and Tomboco fields on Block 14 onstream in 2007. ExxonMobil operates the
$3.4 billion Kizomba A field (located in Block 15), which began production
in August 2004. Kizomba A is targeted to have peak production of 250,000
bbl/d. First oil from the Kizomba B field came online in July 2005, while
the Kizomba C field could begin production as early as 2007. In offshore
Block 17, oil is produced from the Girassol and Jasmin fields. A third
field, Dalia, with expected output of close to 200,000 bbl/d, will likely
begin production in late 2006. BP is planning to bring first oil online
from the Greater Plutonio project on Block 18 in 2007. In 2005, BP, in
partnership with ExxonMobil, Statoil, and Marathon Oil, announced a total
of five new oil discoveries on Block 31, which brings the total of
discovered wells on the block to nine. For more information on the oil
sector in Angola, please see the Angola
Country Analysis Brief.
South AfricaSouth Africa's oil production meets 10 percent of its domestic needs.
The South African national oil company, PetroSA has concentrated its
exploration efforts on the country’s western and southern coasts. Several
discoveries have been made in the Bredasdorp Basin on Block 9, including
the Oribi, Oryx and Sable fields. Combined, the Oribi and Oryx fields
produce 16,000 bbl/d of oil; however, PetroSA has indicated that both
fields are in decline. Production at the Sable Field, located
approximately 60 miles off the southern coast, commenced in August 2003.
The project is a partnership between PetroSA and Pioneer and includes six
subsea wells connected to a floating, production, storage and offloading
vessel (FPSO) with the capacity to process 60,000 bbl/d of oil. Current
production at Sable is around 23,000 bbl/d of oil. For more information on
the oil sector in South Africa, please see the South
Africa Country Analysis Brief.
Democratic Republic of
CongoIn DRC, Perenco operates six onshore fields, with an output of
approximately 20,000 barrels per day. Perenco is also the operator of
DRC's offshore concession and terminal - assets it acquired from Chevron
in 2004. In 2004, DRC's national oil company, Société Nationale des
Petroles du Congo (SNPC), was reorganized to become a holding company with
seven subsidiaries.
In April 2006, Madagascar opened up 96 new offshore oil and natural
gas blocks for tender. The government will accept bids from interested
parties until November 17, 2006. The licensing round is overseen by the
Office des Mines Nationales et des Industries Strategiques (OMNIS) and
TGS-Nopec, which completed seismic data on the blocks. In 2005, U.K.-based
Sterling Energy sold 70 percent of offshore Ambilobe and Ampasindava
licenses to ExxonMobil. ExxonMobil plans to finance exploration work on
the licenses. Additional international oil and natural gas companies
active in Madagascar include Norsk Hydro (Norway), Vanco (U.S.), Vuna
Resources (China) and Sun-Pec (China).
NamibiaIn August 2005, BHP Billiton (Australian), Hunt Oil (U.S.), and
Neptune Petroleum (U.K.) signed memoranda of understanding (MoUs) with
Namibia’s Ministry for Mines and Energy. The MoUs allow the companies
exploration rights for two years, with the option to renew the licenses at
the end of that period. In March 2005, EnerGulf Resources (Canada) signed
an MoU with the National Petroleum Corporation of Namibia (Namcor) to
jointly explore and develop offshore Block 1171, which is located along
the maritime border with Angola.
TanzaniaIn May 2005, the Tanzania Petroleum Development Corporation (TPDC)
offered OphirEnergy
(Austria), Statoil
(Norway) and Petrobras
(Brazil) production sharing agreements
(PSAs). In October 2005, Ophir Energy signed the PSA for
Block One, while Statoil and Petrobras are still negotiating contracts for
their PSAs. In 2004, TPDC signed with Petrobras for deepwater Block Five,
off Mafia Island and with Maurel & Prom (France) for acreage along the
coast. Shell has yet to finalize an agreement for Blocks 9 - 12 near
Zanzibar and Pemba Islands, which it won over two years ago.
MozambiqueIn February 2005, Mozambique launched its second offshore licensing
round for blocks in the northern Rovuma basin. In June 2005, the
Mozambican Empresa Nacional de
Hidrocarbonetos (ENH) and the South African petrochemical company
Sasol signed an agreement with the Mozambican government for Blocks 16 and
19 off the southern coast of Mozambique. Seismic studies and exploratory
drilling on the blocks are expected to cost $7 million. In May 2006, the
Mozambican government awarded Norsk Hydro two concessions in the Rovuma
basin and companies Eni, Petrobras and Petronas are seeking concessions in
the basin as well.
RefiningSouthern Africa's petroleum refining capacity is concentrated in
South Africa, where four refineries have a combined 504,547 bbl/d
distillation capacity. Other Southern African refineries are in Angola
(Luanda, 39,000 bbl/d); Madagascar (Toamasina, 15,000 bbl/d); Tanzania
(Dar es Salaam, 14,900 bbl/d) and Zambia (Ndola, 23,750 bbl/d).
In accordance with Black Economic Empowerment (BEE) policy, in which,
black people have ownership in new and existing business, Shell is
expected to sell a 25 percent stake in the South African Sapref refinery
to a black-owned partner. In addition to Shell and BP, multinationals
Caltex (Chevron), Engen, and Total are major participants in South
Africa’s downstream petroleum markets. Several domestic firms are also
involved, including black-owned firms Naledi Petroleum and Afric Oil.
Worldwide Africa Investment Holdings (WAIH) owns 55 percent of Afric Oil,
51 percent of South African Zenex, and 20 percent of Engen.
In addition to the Luanda refinery, Angola is developing plans for a
new 200,000-bbl/d refinery in the coastal city of Lobito. An estimated 50
percent of the products produced at the new refinery would be consumed
domestically; the remaining 50 percent would be for export. Various firms
have expressed interest in partnering with Sonangol in building the
refinery, especially after Sonangol linked building the refinery to having
upstream ownership in Blocks 15, 17 and 18. Sonangol hopes to have the
refinery operational by 2009.
Zambia's Indeni refinery is currently operating at 80 percent
capacity after having been closed due to mechanical problems. Over the
next three years, a total of $65 million will go towards refinery upgrades
of Indeni. In August 2006, Indeni is slated to undergo the first phase of
refinery upgrades, which will cost $24 million. Meanwhile, Zambia will be
forced to import refined fuel from South Africa, Tanzania and Mozambique
to supply the country’s economically vital copper and cobalt mines and
transport sector. Indeni is jointly owned by the Zambian government and
Total.
Consumption In 2005, petroleum consumption in Southern Africa averaged 727,000
bbl/d. The vast majority of petroleum consumed in the region is imported;
Angola and DRC are the only net exporters. Several countries in the region
-- particularly Zimbabwe -- have experienced periodic, sometimes severe,
petroleum shortages. However, in May 2006, Equatorial Guinea agreed to
supply Zimbabwe with oil, which should ameliorate the country’s struggling
economy.
All of Botswana's refined oil needs are supplied by South Africa,
except for a small supply to the western part of the country by Namibia.
Namibia acquires 90 percent of its petroleum requirements from South
Africa. Sasol was awarded a tender in September 2004 to supply Namibia for
three years. Most of Malawi's fuel imports are supplied via Tanzanian and
South African ports, although additional sources of imports, via a
pipeline from Mozambique, are also being developed.
The Comoros, Seychelles and Mauritius import most of their fuel
energy requirements. The Indian Oil Corporation operates an 18,000-ton
storage terminal on Mauritius and is planning to expand its presence
there.
PipelinesThe 1,069-mile Tazama Pipeline transports crude from Dar es Salaam,
Tanzania to Zambia's Indeni refinery. The pipeline, jointly owned by the
governments of Zambia (67 percent) and Tanzania (33 percent), has a
capacity of 22,000 bbl/d. In October 2004, the Zambian government decided
not to privatize the Tazama Pipeline due to the facility's strategic
importance to the national economy. Serious problems facing the Tazama
Pipeline include vandalism and the deterioration of pumping equipment.
The Mozambique-Zimbabwe Petrozim Petroleum Products Pipeline runs
from the port of Beira in Mozambique through Feruka, Zimbabwe to Msasa,
located near Harare. Zimbabwe imports 80 percent of its petroleum through
the pipeline. Zimbabwe's Noczim is planning to construct an additional
oil-product pipeline from Beira to Msasa to help meet Zimbabwe's oil
demand.
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Natural Gas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SADC contains relatively small amounts of proven natural gas reserves when compared to the rest of the African continent. |
According to the OGJ, SADC
contains 9.2 Trillion cubic feet (Tcf) of proven natural gas reserves. The
majority of the proven reserves are located in Angola (1.6 Tcf),
Mozambique (4.5 Tcf), Namibia (2.2 Tcf), Tanzania, with 800 Billion cubic
feet (Bcf) and DRC (35 Bcf) (see Table
4). Overall, the region contains approximately 1.9 percent of
Africa's natural gas reserves. Several projects are underway to expand
utilization of natural gas in the region.
In Angola, Chevron and Sonangol are developing a liquefied natural
gas (LNG) facility to convert natural gas from several offshore fields for
export. The facility will process natural gas that is currently flared
during crude oil production. The LNG facility will have total production
capacity of five million-tonnes-per-year and will be located near the city
of Soyo, in northern Angola. The front-end engineering and design study
(FEED) for the LNG project should be completed by 2007; however, the
facility is not expected to come online before 2010 at an estimated cost
of $5 billion. Chevron and Sonangol are the principal stakeholders in the
LNG project, joined by partners Norsk Hydro, BP, Total and ExxonMobil.
NamibiaIn Namibia, Tullow Oil (U.K.) is developing the Kudu natural gas
field, which is located offshore in Production License 001 and has
estimated proven reserves of 1.3 Tcf. The project includes piping natural
gas to an 800-megawatt (MW) power plant at Oranjemund, which Namibia’s
state electric company, NamPower, is currently developing. Tullow has
plans to drill two appraisal wells on Kudu in early 2007. Tullow operates
Kudu with a 90 percent share in the project and is joined by the National
Petroleum Corporation of Namibia (10 percent).
TanzaniaTanzania’s Songo Songo natural gas field is located offshore in the
Indian Ocean and contains estimated proven reserves of 420 Bcf and
additional probable reserves of 85 Bcf. The five wells on the field can
produce at a capacity of 1.5 million cubic feet per day (Mmcf/d). However,
current marine and land pipeline infrastructure only allows for 70 Mmcf/d
of natural gas to be supplied to industrial users in Dar es Salaam. Songo
Songo is operated by East Coast Energy Corporation. In April 2006,
Canadian-based Artumus Group began drilling appraisal wells in Tanzania’s
Mnazi Bay. Analysts estimate that the field could produce 10 MMcf/d over a
30-year project life. Tanzania awarded Artumas the license for the Mnazi
Bay Block in 2004.
MozambiqueMozambique has 2.5 Tcf of proven natural gas reserves located
offshore in the Temane, Pande and Buzi-Divinhe fields. In 2004, Sasol
began piping natural gas from the Temane and Pande fields through a
537-mile, $1.2 million pipeline. To date this is Mozambique’s only source
of hydrocarbon production; however, exploration for additional natural gas
reserves in the country continues. In June 2005, Sasol signed an
exploration and production contract for Blocks 16 and 19 offshore
Mozambique.
BotswanaIn March 2004, the US Trade and Development Agency (USTDA) provided a
grant to the Botswana Development Corporation (BDC) to complete a
feasibility study on the development of a coal bed methane (CBM) project.
In August 2005, production of the CBM pilot project began at the Lephehpe
coal field. The area contains an estimated 12.8 Tcf of CBM. Additional
studies of the Kalahari Karoo basin by Advanced Resources International
have found that the area could contain a total of 196 Tcf of gas-in-place
resources, of which, 40 Tcf could be recoverable.
South AfricaIn 2000, a natural gas discovery was made in Block 2A in South
Africa, which is likely part of the reservoir that extends to Namibia’s
Kudu prospect. US-based companies Forest Oil Corporation (operator) and
Anschutz, along with BEE Company Mvelaphanda, are in the process of
exploring for additional natural gas in Block 2A. In August 2003, PetroSA
purchased a 30 percent share in the Ibhubezi Gas Field project. PetroSA
hopes that natural gas from Ibhubezi, along with natural gas from Namibia
and Mozambique, can be used at its 45,000 bbl/d Mossel Bay gas-to-liquids
(GTL) plant, where reserves may be depleted by 2007.
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The largest recoverable coal reserves in SADC are located in South Africa. |
Coal resources are abundant in SADC, especially in South Africa,
where in 2003, recoverable reserves were estimated at 53.7 billion short
tons (5.4 percent of world recoverable coal reserves). In 2003, regional
coal production reached 269 million short tons (Mmst), of which South
Africa produced nearly 264 Mmst (see Table
5). South Africa also consumed the vast majority (98 percent)
of the region's coal in 2003. Coal is primarily used in the production of
electricity in the SADC region. However, South Africa has a highly
developed synthetic fuels industry, in which, the country uses large
amounts of coal along with natural gas and condensate to produce oil.
South Africa is the world’s sixth largest coal producer. The
Mpumalanga province accounts for 83 percent of South African coal
production, while Free State, Limpopo, and KwaZulu-Natal also have
producing mines. Anglo American’s Anglo Coal (Anglo), BHP Billington’s
Ingwe Coal (Ingwe), domestic mining firms Eyesizwe Coal (Eyesizwe), Kumba
Resources (Kumba), Sasol Mining (Sasol), and Swiss-based Xstrata Coal
South Africa (XCSA) are all responsible for the majority of South Africa’s
coal production. For more information on coal sector in South Africa
please see the South
African Country Analysis Brief.
MozambiqueMozambique awarded Companhia do Vale do Rio Doce (CVRD) the rights to
develop coal deposits in the Moatize mines. Moatize in northwestern
Mozambique is considered to be the largest unexplored coal province in the
world, with an estimated 2.4 billion tons of reserves. In May 2006, CVRD
announced that it planned to submit a proposal to its executive board to
begin work on the Moatize mines. The project will likely include the
development and improvement of mine facilities and a power station. Indian
company Rites & Ircon has already won a tender to construct a rail
line between the mine and the ports of Nacala and Beira, which also can be
used by Zimbabwe, Malawi, Zambia and DRC. A new deepwater port north of
Beira is also expected.
MalawiDespite reserves of approximately 2.3 Mmst, Malawi's Mchenga coal
mine continues to produce below peak output due to financial constraints.
Mchenga Coal Mines has been searching for additional reserves in the
northern Livingstonia coalfields. According to the Ministry of Natural
Resources and Environmental Affairs of Malawi the unexploited Mwabvi
coalfield in the southern Shire River valley contains proven reserves of
5.5 Mmst, while the Lengwe coalfield contains probable reserves of 11
Mmst.
ZimbabweZimbabwe's petroleum shortages have affected the country's coal
industry. The National Railways of Zimbabwe (NRZ), which transports the
majority of the coal produced at Zimbabwe's Wankie Colliery, has been
forced to ground some of its trains because of diesel fuel shortages. In
September 2005, Rio Tinto Zimbabwe (RioZim) sought investments for the
stalled Sengwa coal project. An estimated $2 million is needed to continue
work on the project. According to RioZim, the area could have 2.2 billion
short tons of coal reserves.
BotswanaIn Botswana, Meepong Resources (a subsidiary of CIC Energy) has
ownership rights to the Mmamabula east and Mmamabula south coal
prospecting licenses. However, Highlands Star Group (HSG) is seeking an 80
percent shareholding interest in Meepong Resources, which would give them
majority ownership. The Botswana Ministry of Minerals and Energy estimates
that Mmamabula contains proven coal reserves of 4.7 Mmst. CIC has plans to
develop a coal-fired power station, which would supply electricity to the
Southern African power grid beginning in 2011, or to supply thermal coal
from the mine to power producers already producing electricity.
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South Africa generates the vast majority of electricity in SADC. |
As of January 1, 2003, SADC's total installed electric generating
capacity was 52.3 gigawatts (GW) (see Table
6). South Africa generates the majority of the region’s
electricity, with 215.9 Billion kilowatthours (Bkwh), followed by
Mozambique (15.1 Bkwh), Zimbabwe (8.9 Bkwh), and Zambia (8.4 Bkwh). In
2003, total regional electricity consumption was 244.4 Bkwh, led by South
Africa (197.4 Bkwh), Zimbabwe (11.6 Bkwh), Mozambique (10.5 Bkwh) and
Zambia (5.8 Bkwh).
Regional ProjectsCreated in 1995, the Southern African
Power Pool (SAPP) aims to provide
reliable and economical electricity to consumers of each member-country. A
total of 12 member-countries belong to SAPP and they are represented by
their respective electric power companies. The electric power companies
have equal rights and obligations, and they have agreed to act in
solidarity as they work to provide electricity throughout SADC.The coordination center
for SAPP is located in Harare, Zimbabwe.
In November 2003, BPC, Eskom, ENE, NamPower and SNEL formed the
Western Corridor Power Project (Westcor) in order to provide electricity
to promote the economic development of the region. The first phase of the
project includes the construction of the 3,500-MW Inga III hydropower
station in DRC, with interconnections for about 1,864 miles of power
transmission lines to supply the five Westcor countries: DRC, Angola,
Namibia, Botswana, and South Africa. In August 2004, the DRC indicated
that, as the host country, it would like more than the 20 percent stake
allotted to it, stalling the project. As of January 2006, the
participating governments and utilities had signed agreements to
co-develop the project, and each utility committed $100,000 for funding
feasibility studies. The utility companies also signed a shareholders
agreement, in which, each utility agreed to own 20 percent of Westcor. The
Western Power Project may eventually include the construction of
hydropower stations in Angola and Namibia.
South AficaSouth Africa’s parastatal company Eskom is one of the largest
electric utilities in the world and generates 95 percent of the country’s
electricity. Eskom has 36,200 megawatts (MW) of net generating capacity,
which is primarily coal-fired (32,100 MW). In addition, Eskom operates one
nuclear power station at Koeberg (1,800 MW), two natural gas turbine
facilities (340 MW), six conventional hydroelectric plants (600 MW), and
two hydroelectric pumped-storage stations (1,400 MW). Eskom produces
adequate electricity for domestic use and exports surplus power to
Botswana, Lesotho, Mozambique, Namibia, Swaziland, and Zimbabwe. Given the
prospect of reaching its peak capacity in 2007, Eskom announced in June
2004 a plan to bring its three mothballed power stations (3,800 MW) back
into service by 2011. Additional electricity is generated by South African
municipalities (2,400 MW) and private companies (800 MW).
MozambiqueMozambique's Cahora Bassa hydroelectric facility is located on the
Zambezi River in the western province of Tete. The power station, with a
nominal capacity estimated at 2,075 MW, currently supplies electricity
domestically, as well as to Zimbabwe and South Africa. Cahora Bassa is
operated by Hidroelectrica de Cahora Bassa (HCB), a joint-venture between
Portugal (82 percent) and EDM (18 percent). However, in March 2006, the
government of Mozambique reached an agreement with Portugal in which
majority ownership of Cahora Bassa will be transferred to Mozambique.
Currently, Mozambique is seeking funds to modernize the Cahora Bassa
facility at an expected cost of $40 million. In addition, the government
is seeking investors for a new 2,400-MW hydroelectric facility on the
Zambezi River, about 43 miles south of the Cahora Bassa Dam. Once
construction is underway, it could take up to eight years for generation
to begin.
ZimbabweWhile Zimbabwe imports about 40 percent of its electricity
requirements, the country's power supply has grown increasingly irregular
over the past year. As of May 2006, Zimbabwe had an electricity deficit of
roughly 250 MW per day. The lack of electricity is due to underperformance
of the Kariba and Hwange hydroelectric power stations. In response, the
Zimbabwe Electricity Supply Authority (ZESA) has been forced to introduce
load shedding and occasional power cuts, while increasing electricity
imports from South Africa, Mozambique and DRC. ZESA has asked the Reserve
Bank of Zimbabwe (RBZ) for $900 million in funding to refurbish and expand
Kariba and Hwange. In October 2005, a $200 million refurbishment project
for Kariba South failed due to lack of funding.
ZambiaZambia has abundant hydroelectric resources and meets most of its
domestic energy needs from its own hydroelectric stations, which are
operated by the state-owned Zambia Electricity Supply Company (Zesco).
Zambia exports electricity to its neighbors, especially Tanzania and
Kenya. In May 2006, Zesco announced that it had completed rehabilitation
work on Zambia’s power transmission and distribution systems; however,
rehabilitation of the country’s hydroelectric power stations is not
expected to be completed until 2007. Zambia is currently seeking funding
for building three new power projects, which include the Kafue Gorge Lower
Project, Kariba North Bank Extension, and the Itezhi-tezhi Hydropower
Project.
Democratic Republic of
CongoDRC has extensive potential hydroelectric capacity of approximately
100,000 MW. Due to continuing political uncertainties and the resulting
lack of investor interest, only a fraction of this amount has been
developed. In 2003, the DRC had total installed generating capacity of
2,568 MW. However, actual production is estimated at no more than 600-700
MW because two-thirds of the turbines are not functioning. In May 2006,
MagEnergy (Canada) began overseeing the refurbishment and rehabilitation
work on Inga Dam, which is operating at 40 percent. The repairs should
allow Inga to work at full capacity (1,774 MW) by 2010. DRC exports
hydroelectricity to its neighbor, Republic of Congo along a 220-kilovolt
(KV) connection. The interconnection supplies nearly one third of the
electricity consumed in Congo-Brazzaville. Power from Inga is also
transmitted to the Zambian grid along a 500-KV DC line from Inga to
Kolwezi in southern DRC, and a 220-KV line from Kolwezi to Kitwe in
northern Zambia. South Africa also imports DRC's energy output through the
Southern African Power Pool (SAPP) grid.
MalawiMalawi's Shire River supports four hydroelectric plants, which
account for the majority of the country's electrical output. A 31-mile
transmission line from Mozambique's Cahora Bassa Dam is under construction
and is expected to be completed by 2008. Additional work continues on the
Kapichira hydroelectric power scheme that is designed to add 128 MW to the
country's capacity.
SwazilandIn August 2003, the Swaziland Electricity Board (SEB) and the
European Investment Bank (EIB) signed a $9.3 million loan agreement for
the construction of a hydroelectric power station at the Maguga Dam on the
Komati River. In November 2004, Alston Power and Consolidated Power Ltd.
signed contracts with the SEB to supply and install turbines and
generators, as well as to construct and commission substations for the
Maguga power project. In early 2006, the hydroelectric station at Maguga
Dam came online; however, maximum output is only 19 MW. Even with the new
power station at Maguga, Swaziland still imports about 80 percent of the
country's electricity from South Africa, and additional amounts from
Mozambique.
BotswanaBotswana plans to provide electricity to 70 percent of its population
by March 2009 and to the remaining 30 percent by 2016. Currently, only 22
percent of Botswana's population has access to electricity. The generating
capacity of the Botswana Power Corporation (BPC) is centered at the 132-MW
Morupule power station. Through government funding, BPC is engaged in a
major program to extend the electricity grid into rural areas. In early
2004, BPC completed the largest electricity extension phase to date.
NamibiaAbout 50 percent of Namibia's electricity is generated domestically,
mainly from the 240-MW Ruacana hydropower plant. The production level is
cyclical, so imports from South Africa are needed to cover the periodic
gaps in production. The Ruacana plant recently has experienced severe
malfunctioning, increasing the need for imported power. With the current
import agreements between Namibia and South Africa scheduled to expire in
2006 and South Africa's declining excess capacity, Namibia has begun to
prepare itself for the reduced power supply. The Namibian government is
actively seeking new energy sources, including a proposed 800-MW natural
gas-fired power plant (supplied by the Kudu field), a wind powered plant
at Luderitz and potential hydroelectric supplies from the Kunene River on
the Angolan border. In 2005, the Namibian government reactivated old power
stations in Walvis Bay and Windhoek as an interim measure, but power
rationing may soon become necessary.
In May 2004, Namibia's Nam Power commissioned a pre-feasibility study
on a 20-MW hydroelectric plant at Popa Falls on the Okavango River.
Officials rejected an earlier plan due to concerns over possible damage to
the Okavango Delta, located downstream from the falls in neighboring
Botswana. Nam Power continues to back the project, which would provide a
much needed power source, but the project remains in limbo. Namibia
already imports electricity from Zambia via a 66-KV line, but the
countries have plans to construct a higher voltage power line between
Katima Mulillo and Victoria Falls at some point in the future. The line
could be connected to Namibia’s national grid.
TanzaniaAfter a drought in 2004, all of Tanzania's hydroelectric plants were
operating at half capacity, which led to the implementation of a World
Bank-funded Emergency Power Plan. In July 2004, Houston-based Globeleq
brought online the 110-MW gas-powered Songas plant in Ubungo, which the
company expanded to 180 MW in June 2005. The Songas plant supplies
approximately 35 percent of Tanzania’s energy requirements. Tanzania,
Zambia and Kenya are also pursuing a $230 million project to connect their
grids. Rwanda and Uganda have expressed interest in joining the
Zambia-Tanzania-Kenya interconnection.
Renewable EnergyIn 2001, the Compagnie Thermique de Belle Vue (CTBV), a joint-venture
composed of Harel Frères of Mauritius, France's Cidec, the Sugar
Investment Trust of Mauritius and the State Investment Fund, built a 70-MW
facility north of the Mauritian capital of Port Louis. The CTBV plant
utilizes bagasse (biomass refuse from the processing of sugar cane) as its
primary fuel. Swaziland has expressed interest in a bagasse power plant;
however, the project has been stalled for seven years. The U.S. Trade and
Development Agency is currently financing a feasibility study of a planned
bagasse power plant in Tanzania.
Solar energy is viewed as a prime tool for SADC's rural (off-grid)
electrification programs, which have been slowed by the high costs of grid
extension services. Zambia's government has encouraged investment by
eliminating all import duties on solar panels and waiving the otherwise
obligatory annual license fees for solar energy projects. In November
2004, the Gobabeb Training and Research Center inaugurated the Gobabeb
hybrid mini-grid installation in the Namib Desert.
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