The regional association of energy regulators for Eastern and Southern Africa (RAERESA) and it partners are gathered in Kigali-Rwanda for a validation workshop that would be a game changer in cross-border power trade.
The workshop that covers two days from July 30-31 is discussing deliverables of the consultancy assignment on regional harmonization of regulatory frameworks and tools for improved electricity regulation in COMESA.
The objective of the whole project that was financed by the African Development Bank at a tune of $ 1.5 million, is to promote cross-border power trading by advancing intra-regional harmonization of electricity regulations in the region.
“This program aims to enhance harmonization of regulatory aspect of electricity in our region in order to be more transparent and predictable so that if investors come they have information,” said Doctor Mohamedain E. Seif Elnasr,the Chief Executive Officer of RAERESA.
Mohamedain indicated that on the agenda, the participants are expected to validate regulatory principles, regulatory and utility key performance indicators, harmonization of electricity tariffs in the region cost reflective assessment.
He recalled the ministerial meeting of 2017 which required the member countries to migrate to cost reflective tariffs, “to be able to attract investors in the sector.”
“Access to electricity in the region, is around 60 per cent. So, we need to put more efforts, to get more investment in order to increase the access to 80 per cent or 90 per cent.”
He said, that currently, the regional energy capacity is of 100,000 megawatts, of which 25 per cent of renewable energy, and thermal, 75 per cent. In the later, 80 per cent is from gas, which makes the region a champion in clean energy.
As far as tariffs is concerned, Mohamedain said that the regulators will give the member countries a framework which they will have to customize.
Doctor Mohamedain E. Seif Elnasr, the Chief Executive Officer of RAERESA (L) and RURA boss at the validation workshop
The framework will thus give regulators a room to monitor the tariffs in the region, while also allowing the country members to share information and best practice.
According to Florien Gumyusenge, Acting General Manager of Energy, Water and Sanitation at Rwanda Utilities Regulatory Authority (RURA), harmonization of regulations and tariffs makes a lot of sense because there is an imbalance in electricity access in the region.
“Some countries have excess, while others have a deficit. So, it’s important to come together and harmonize trade regulations without which cross-border trade would be cumbersome,” Gumyusenge said.
He said harmonisation of standards and other tools would help two countries to reach an electricity trade agreement.
With these tools, Rwanda would be able to trade with, not only the neighbouring countries, but also further countries in COMESA.
This project will also enable the region to put in place a common energy market and a regional regulator.
Reacting on the issue that the cost of electricity is high in the region, including in Rwanda, Gumyusenge said, that like in other services, it is always important to strike a balance between supply and demand.
“Very high price would make the consumers enable to buy which would be a failure of providers on one side. On another side however, lower cost would prevent the provider to remain in business,” he said.
