Strategic analysis of independent power producers in Southern Africa

Boussougouth, Jeannot Boussougou (2009-03)

Thesis (MDF)--Stellenbosch University, 2009.

Thesis

ENGLISH ABSTRACT: The electricity crisis presently affecting Africa is forcing govenments in the region to increasingly consider independent power developers as a means to help mitigate the imbalance between the demand and the supply of electricity. However, the success of this initiative will depend entirely upon governments' ability to create an environment that is conducive to developing private electricity generation plants. This paper focuses on Africa's independent power producer (IPP) market, evaluating the context in which it would develop. It also assesses how issues such as the complexity and uncertainty surrounding power purchase agreements, the current level of electricity tariffs, the incompleteness of power sector refonn as well as risk-sharing agreements between IPPs and the utilities are affecting the electricity market in the region. The analysis has broader implications for potential independent power projects as it not only questions the longterm sustainability of these but also provides strategic recommendations as to how to best maneuver in an environment fraught with major challenges.

AFRIKAANSE OPSOMMING: Die huidige elektrisiteitskrisis wat Suidelike-Afrika affekteer veroorsaak dat owerhede in die streek al hoe meer die moontlikheid van onafhanklike elektrisiteit produsente ondersoek om die wanbalans tussen elektrisiteit aanvraag en lewering te beperk. Die sukses van die initiatief is egter totaal afhanklik van die owerhede se vermoe om 'n omgewing te skep wat aantreklik is vir die ontwikkeling van privaat sektor kragsentrales. Hierdie verslag fokus op die Suidelike-Afrika onafhanklike elektrisiteit produsente mark, met 'n fokus op die konteks waarbinne dit moet ontwikkel. Dit ontleed verder die kompleksiteit en onsekerheid van krag aankoop kontrakte, die huidige vlakke van elektrisiteitstariewe, die tekort aan elektrisiteits sektor hervorming asook risiko-delende kontrakte tussen onafhanklike elektrisiteit produsente en nasionale elektrisiteitsverskaffers in Suidelike-Afrika. Die analise het breer implikasies vir potensiele onafhanklike elektrisiteit projekte aangesien die lang-termyn volhoubaarheid van sulke projekte bevraagteken word, maar gee ook strategiese aanbevelings oor hoe om die mark te betree met vele uitdagings.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/49483
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