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Formulation of a capacity mechanism for the Southern african power pool(SAPP) for sustaines long-term system adequacy

A thesis submitted to the Faculty of Engineering and the Built Environment,
University of the Witwatersrand, Johannesburg, in fulfilment of the requirements
for the degree of Doctor of Philosophy.
University of the Witwatersrand, Johannesburg / Power system adequacy has been historically insufficient in the Southern African
Power Pool (SAPP) region with resulting negative effects on economic growth and
electrification efforts. Existing domestic regulatory frameworks and opaque longterm
bilateral contracting for procuring capacity in the region have been shown to
be insufficient in ensuring system adequacy. The concept of an adequacy product
in the form of a Capacity Mechanism (CM) introduced into the SAPP region has
not yet appeared in the literature. A Capacity Mechanism (CM) for the SAPP
region has been proposed and designed as part of this research to address this. A
framework has been developed to consider CMs via the combination of a screening
assessment, quantitative (model-based) analysis of more favourable CM options
and an identification and quantification of key design elements. The developed
framework can also be generalised and applied to other jurisdictions where CMs
are under consideration. A regional CM which transparently and explicitly values
capacity is proposed in the form of a forward-looking annual Capacity Auction that
is locationally disaggregated, supplied by all possible supply-side resources with all
feasible SAPP market participants included. The CM should be technology agnostic
and account for the dual requirement for firm capacity to meet peak demand and
firm-energy to meet annual energy requirements considering the dominance of hydrobased
capacity in the region when excluding South Africa. There should be a leadtime
of 3-4 years with the possibility of long-term auctions for large hydro-based
capacity. Strict market monitoring and adherence to performance incentives and
penalties will need to be ensured to avoid exercising of market power considering
the dominant size of the South African power system. Appropriately mandated
institutions to run Capacity Auctions would include the SAPP Co-Ordination Centre
as well as a sufficiently mandated regional regulatory body. A further contribution
is made in the form of a public domain power system dataset of the SAPP region
with sufficient detail to be used in power system operations and planning efforts by
future researchers and practitioners. / E.K. 2020

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:wits/oai:wiredspace.wits.ac.za:10539/28776
Date January 2019
CreatorsWright, Jarrad G
Source SetsSouth African National ETD Portal
LanguageEnglish
Detected LanguageEnglish
TypeThesis
FormatOnline resource (xv, 203 leaves), application/pdf, application/pdf, application/pdf, application/pdf

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