Regional Power Market Development

Development of the EAPP Regional Power Market

The objective of the EAPPs region power sector transition towards a market-based structure is to foster competition and lower costs of supply. However, EAPP is of the view that countries should be able to undertake this transition at their own pace with power exchanges at the pool level while respecting individual country’s rules and regulations.  Currently, there is significant investment in transmission lines between countries and the region is soon set to transition from four (4) synchronous areas into two (2) synchronous areas – after the energization of the Egypt – Sudan
interconnector (when Egypt and Sudan are synchronized following the installation of static var compensation on the Sudanese side of the network by the end of 2022, when the capacity will increase to 300 MW.) and the Rwanda – Uganda interconnector by the end of 2021. Tanzania, on the completion of the Kenya – Tanzania interconnector (expected in 2023), will join the synchronized area with Kenya. 

Although there will be two synchronous areas, these will be interconnected via the HVDC link (Ethiopia-Kenya) so that, from a market perspective, they can operate as one. In addition, the Tanzania – Zambia interconnection (under implementation and expected by 2025) will enable trade with SAPP. The grid will be the backbone used to transport power from countries in surplus (or lower cost) to those in deficit (or higher costs), reducing costs for importing countries by mitigating against the need to import costly liquid fuels whilst providing export revenue to exporting countries and at the same time providing greater system stability through the sharing of reserves. In order to facilitate energy exchange, as well as efficiently operate the interconnected system, the EAPP requires a well thought out market that will facilitate the trade of energy and provide a framework for use of transmission capacity between countries with binding and enforceable rules and procedures to ensure that national systems can interoperate

Completed preparatory activities

On going Actvities

Market Development Documents

This Market Design Report has been prepared by a consortium of Nord Pool Consulting AS and Ricardo Energy and Environment as the final delivery of the project with reference number ET-EAPP-186205-CS-CQS, covered by the Tanzania-Zambia Transmission Interconnector (P163752) and the technical assistance to the EAPP under grant number D350. The project was agreed on February 4th, 2021. The objective of this project was to develop a design for the EAPP power market that provides the framework for drafting the legal text of the market rules, codes, procedures and agreements in future. This final report from this project covers a recommended design of a market for all 11 member countries of EAPP as well as potential market integration with countries within the Southern Africa Power Pool (SAPP).

A Road Map for Increasing Regional Power Trade in Eastern Africa (2022) – Booklet
Final EAPP Market Design Final Report (2022)



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