The five main lessons for SouthernAfrica from our review of the experiencewithcross-border power trading in other regions of the work arethat: Security of supply concerns need to be explicitlyaddressed and understood by the parties to proposedcross-border transactions. Regional entities need to beempowered to make decisions based on legally enforceablenational government commitments, particularly in relation toplanning, pricing, and settlement rules. Bilateral tradingprovides a basis for expanding trading volumes, both throughconstructing the physical infrastructure that future dealswill use and by establishing workable legal and regulatoryframeworks. Power pools will help to generate sustainedincreases in cross-border trading along with other regionaltrading arrangements, particularly in power systems withseveral interconnection. The substance and process ofregulatory reviews in importing and exporting countries mustbe clear to create sufficient investment certainty.
PDF
download
878987797
028-85220240
