Regional Power Market

Developing a Power Market for Eastern Africa

The EAPP’s Strategic Plan and the short-term action plan outline the critical activities needed to achieve a reliable integrated regional power system and enhance multilateral power trade in an economically efficient manner. In order to better deliver on this mandate, the EAPP has requested and received financing from the World Bank under the World Bank executed multi-donor trust fund (MDTF) and the IDA Grant under Component 4 of the Tanzania-Zambia (TAZA) Transmission Interconnector Project (P163752) as well as from the African Development Bank (AfDB) for Capacity Building for the operationalization of the regional power market. Other Development Partners are also supporting other activities identified in the EAPP strategic plan that might be related to (or influence) the market design. Power trading through common planning and implementation of regional generation and transmission interconnection projects was identified as an important strategy of the EAPP for tackling the problems associated with power shortages, low access, high cost and poor power system reliability.

Based on the situational analysis and the priority areas of action indicated in the EAPP Road Map and Strategic Plan (2018-2027), the following four strategic themes have been established:

  1. Power Infrastructure Development;
  2. Development of Regional Power Market;
  3. Excellence in Operational Activities; and
  4. Learning and Growth.

These four themes are consistent with the EAPP objectives outlined above. This project focuses on theme 2, the development of a Regional Power Market.

Market Development activities

Consistent with EAPP objectives, regional power trading and the associated concepts (institutional, legal, operational, etc.) have been studied, proposed, or recommended through various consultancies, reports, and capacity-building activities since EAPP’s inception in 2005. 

Shadow Market Capacity Building

The need for Regional Power Market Development was captured in the Inter-Governmental Memorandum of Understanding (MOU) which was signed in 2005, initially, by seven countries as objective number seven of EAPP – Facilitate, in the long term, the development of an electricity market in the region.