Africa-Press – Namibia. THE entire Southern African Development Community (SADC) region is facing a shortage of electricity due to the diminishing surplus power generation capacity and constraints in transmission capacity.
These were the sentiments of the deputy minister of mines and energ,y Kornelia Shilunga, at the opening of the Regional Energy Regulators Association of Southern Africa (Rera) annual general meeting at Swakopmund yesterday.
Shilunga, in a speech read on her behalf, said power shortfalls, climate change, increasing demand for access to energy and volatility in energy prices impact the region’s quest towards sustainable development.
She added that development in the region is also hampered by affordability of energy services and security, as well as the lack of reliable and timely information on energy for informed decision making.
“I am made to understand that the whole region is actually in deficit, if we take into account the reserve margin requirements stipulated by the Southern African Power Pool. The situation is further compounded by the fact that the region has been failing to meet the targeted annual requirements for new generation and transmission capacities,” she said.
According to Shilunga, there are massive financial gaps for the significant investments needed to build new generation, transmission and distribution capacities. The minister added that the situation is further compounded by the pace of migration towards cost-reflective tariffs that is perceived as rather slow in most Sadc countries.
“The need for serious commitment to speed up the transition to cost-reflective tariffs or devise alternative funding mechanisms to mitigate electricity shortages and prevent a full-blown crisis in the long run in the region cannot be overemphasised,” added the minister.
This reform, Shilunga said, can only be done by moving towards cost-reflective pricing of electricity across the region.
“It is a crucial step in assuring the sustainability of the electricity supply industry and attracting private investment to a sector in need of new capacity. We also need to be mindful that cost-effective energy services may be beyond the reach of the low income or the disadvantaged majority of the population in the SADC region,” she said.
Rera chairperson Henry Kachaje assured the minister that the member states and cooperating partners are committing to addressing the various challenges that are hampering the development and competitiveness of the energy industry in the region.
“We also reaffirm our commitment, as an association, to the mission of facilitating the harmonisation of regulatory policies, legislation, standards and practices and to be a platform for effective cooperation among energy regulators within the SADC region,” said Kachaje.
Speakers at the meeting made presentations and provided expert insights on topics such as exploiting renewable energy and energy efficiency, facilitating regional transmission infrastructure development and improving commercial viability of energy utilities. Rera was established in 2002 by SADC ministers as an implementing agent on energy regulatory matters and addressing the regional energy challenges.
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