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Evaluating power trading in selected countries of the Southern African development community

Thesis (DTech (Public Management))--Cape Peninsula University of Technology, 2008 / The research explores an evaluation of cross-border electricity trading among
countries of the Southern African Development Community (SADC).
Understanding this trading achieve through an analysis of various global electricity
markets. The research disclose that in the electricity markets in Europe, North
America, South America and Asia analysed in this thesis, none managed to
successful eliminate power shortages. Their situation, however, is different from
that of the Southern Africa Power Pool (SAPP). The apparent poor design of the
SAPP as a regional power pool impacts negatively on power trading within its
region.
A strategic public management model was used to analyse the organisational
dynamics of the electricity companies of the three countries selected for this
research (Democratic Republic of Congo, South Africa and Zimbabwe). A
Strength Weakness Opportunities and Threats (SWOT) analysis carried out on
these markets indicated that there are problems among different electricity
companies, each requiring a solution. Each country's evaluation highlighted a
need for an accountable government to implement a goal-directed policy to militate
against any dysfunctional operations by the electricity companies.
The quantitative and qualitative data analyses of the fieldwork results showed the
SAPP had struggled hard to increase the capacity of members' power trading.
The study indicated internal problems in terms of increasing trading volumes. The
time series analysis showed power trading in the short-term electricity market had
decreased annually. Linear regression analysis also indicated a decline in the
capacity of the SAPP. A number of factors could explain the reduction of capacity
in the SAPP, but the research results suggested a strong probability that electricity
capacity would decrease further, as the countries, trading in the power pool have
experienced decreased electricity volume annually because of internal demand.
In addition to a number of. recommendations, the research proposes a normative
model that could be used by nations to manage and assess the electricity market.
An understanding of the input as adapted from Easton inpuUoutput normative
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transformational systems model, in terms of different governments, should assist
policy-makers to transform the power trading generating distribution industry.
Global experience shows the need to establish a normative transformation of the
electricity industry in the SADC region. It is clear from the results of this study
that the SADC electricity markets have been poorly transformed in terms of a
particular normative guideline.
The situation has also disadvantaged the SAPP, which, in recent times, had less
electricity capacity with which to trade. Implementation of the normative model in
the context of this study sought to analyse all aspects that might influence the
transformation of the electricity sector, and to grow a currently dysfunctional state
to that of functionality and reliability. While each country faced its own reality in
terms of the transformation of its public enterprises, the study recommends the
normative model be implemented in the same way in each selected country.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:cput/oai:localhost:20.500.11838/1682
Date January 2008
CreatorsLukamba Muhiya, Jean-Marc
PublisherCape Peninsula University of Technology
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
Rightshttp://creativecommons.org/licenses/by-nc-sa/3.0/za/

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