A policy perspective for an integrated regional power pool within the Africa Continental Free Trade Area

Babatunde Odetayo and Michael Walsh

Energy Policy, 2021, vol. 156, issue C

Abstract: The Africa Continental Free Trade Area presents an opportunity for the creation of a single continental electricity market in Africa. This market has the potential to promote the efficient development of electricity infrastructure and symbiotic electricity trading between members of Africa's five regional electric power pools. A framework is proposed to harness the opportunities presented by the African Continental Free Trade Area through the coordination of technical and commercial endeavors of the regional power pools in Africa. This includes fostering sharing mechanisms of best practices that support the development of national and international institutions, harmonizing regulations and grid codes, and promoting electricity trading opportunities that will catalyze the development of inter-regional infrastructure projects. In this paper, the authors propose a bilateral contract market that aligns with and complements the existing regional power pools without encumbering them with unnecessary bureaucracy. The paper's policy recommendations are designed to promote proactive adoption and compliance with the recommended best practices, market rules and regulations by market participants, motivated by their self-interests.

Keywords: African Continental Free Trade Area (AfCFTA); Continental Free Trade Agreement (CFTA); Regional power pools; Market integration; International infrastructure development (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:156:y:2021:i:c:s0301421521003062

DOI: 10.1016/j.enpol.2021.112436

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