Frost & Sullivan: Development of Power Pools Within Sub-Saharan Africa Offers Greater Supply Security

By Frost Sullivan, PRNE
Sunday, May 23, 2010

CAPE TOWN, South Africa, May 24, 2010 - The development of regional power pools within sub-Saharan Africa has the
potential to secure electricity supply across the continent. However, there
is a current lack of regulatory procedures and legal framework for the
coordination of infrastructure development.

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"Africa still needs to develop international electricity trade mechanisms
outside of the Southern African power pool to support electricity trade,"
says Frost & Sullivan Energy Research Analyst Ross Bruton. "Nonetheless,
substantial demand for electrification and the pressing need for the security
of power supply in the continent represent primary driving forces for power
pool development in the region."

New analysis from Frost & Sullivan (www.energy.frost.com), The
Sub-Sahara African Power Pools, provides insight into the development of the
regional power pools with regards to generation and electricity
interconnection infrastructure, current electricity trading per power pool
and regulatory documentation and the organizations needed for optimal power
pool development and operations. The study covers power generation; power
interconnection and transmission; and electricity trade.

If you are interested in more information about this study, please send
an e-mail to Patrick Cairns, Corporate Communications, at
patrick.cairns@frost.com, with your full name, company name, title, telephone
number, company e-mail address, company website, city, state and country.

"Power pool development within sub-Saharan Africa is expected to create a
more attractive market to foreign direct investment due to the development of
an international, competitive market for energy trade," says Bruton. "The
development of this market is expected to increase the availability of funds
for large scale power generation projects in areas that represent substantial
amounts of passive energy resources."

Although the development of the regional power pools holds great
potential to influence the security of electricity supply in sub-Saharan
Africa, the current deficit in spare generation capacity of member countries
as well as national transmission and distribution infrastructure severely
limits the ability for international electricity trade. Before the true
advantages of a power pool system can be realized, infrastructure development
needs to occur not only in power interconnection of countries, but also at a
national level.

"In order for power pool development and implementation to be truly
effective, generation, transmission and distribution infrastructure in member
countries needs to progress to a point where a viable market for electricity
trade exists," explains Bruton.

Governments and regulatory bodies need to ensure that there is a clear
master plan for the development and implementation of the power pools. This
plan needs to be monitored and enforced by experienced and independent
regulatory and legal bodies both at a national and international level. This
will assist in the development of investor confidence in the region, creating
more disposable funds, skills and assets for infrastructure development.

"Governments will need to make a commitment to upholding this legal and
operational documentation in order for foreign investor confidence to be
assured," notes Bruton.

The Sub-Sahara African Power Pools is a part of the Market Insights -
Energy & Power subscription, which also includes research on BIPV: Global
Perspective and Future Market Growth in Europe, Oil and Gas Industry -
Overview of Major Indicators, Small Wind Turbines Market in Europe -
Top-level Assessment, European Stationary Fuel Cells - Technological Trends
and Market Development, Snapshot of the Landfill Gas Market in the United
States
, Oil and Gas Industry - Overview of Major Indicators, among others.
These Market Insights are part of Frost & Sullivan Growth Partnership
Service.

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    The Sub-Sahara African Power Pools
    9836

    Contact:
    Patrick Cairns
    Corporate Communications - Africa
    P: +27-18-464-2402
    E: patrick.cairns@frost.com

www.frost.com

Patrick Cairns, Corporate Communications - Africa of Frost & Sullivan, +27-18-464-2402, patrick.cairns at frost.com

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