SAPP GUIDELINE FOR NEW ENTRANTS | 1

The SAPP was formed in 1995 by the national utilities across the SADC region, with the aim of achieving the synergy between large hydro resources in the northern areas of the region and large thermal resources in the southern areas of the region. The SAPP has 12 mainland SADC countries as members, with nine member states that are electrically interconnected. The remaining three countries, Tanzania, Malawi, and Mozambique, are not yet electrically interconnected and are referred to as "Non-Operating Members." The SAPP's role is to facilitate the development and operations of the interconnected power system, with the generation, transmission, and electrical infrastructure owned by the members. The SAPP's objective is to give end-users a choice of electricity supplier, ensure sustainable energy developments through sustainable economic, environmental, and social practices, and make the Southern African region the choice for investment by energy-intensive users. The SAPP's membership has been relatively static since its inception, but the industry's evolution towards privately-owned generation and smaller, distributed power plants has led to an increase in interest from new owners who want to become members of the SAPP. The SAPP's governing documents provide for the inclusion of additional members, and recent additions include two Independent Power Producers (IPPs) in Zambia, namely Lunsemfwa Hydro and Motraco, an Independent Transmission Company (ITC) between South Africa, Eswatini, and Mozambique. The SAPP's structure includes the SAPP Operating Subcommittee, the SAPP Market Subcommittee, and the SAPP Management Committee, which are responsible for the day-to-day operations, market management, and overall management of the SAPP, respectively. The SAPP's membership benefits include access to a competitive electricity market, the ability to trade electricity across borders, and the opportunity to participate in the development of the regional power system. The SAPP's membership obligations include providing control area services, system balancing, wheeling, incremental losses, emergency support, and relationships and opportunities for capacity building. The SAPP's trading timelines and settlement timelines are outlined in Figure 6 and Figure 6, respectively. The SAPP's settlement process involves the exchange of electricity between members, with the SAPP Market Subcommittee responsible for managing the market and ensuring that the settlement process is fair and transparent. The SAPP's membership process involves submitting an application to join the SAPP, which is reviewed by the SAPP Management Committee. The application must include information on the applicant's generation, transmission, and distribution infrastructure, as well as their experience and qualifications in the electricity industry. The SAPP's connection and operation of Independent Power Producers (IPPs) are outlined in Annexure 1. The SAPP's connection and operation of Independent Transmission Companies (ITCs) are also outlined in Annexure 1. The SAPP's connection and operation of National Utilities (NUs) are outlined in Annexure 1. The SAPP's conclusion emphasizes the importance of the SAPP's role in facilitating the development of a competitive electricity market in the SADC region. The SAPP's membership benefits and obligations are outlined in the guideline, which provides a comprehensive overview of the SAPP's operations, structures, and governance.