available across different countries to meet growing demand for electricity . Given the infrastructure differences that exist between South Africa and other countries in Africa , the transition towards a liberalised electricity market will probably look different throughout Africa . Countries housing a lessdeveloped grid infrastructure are more likely to adopt a so-called ‘ mini grids ’ approach . For instance , Nigeria has a similarly sized economy to South Africa and a population of approximately three times more , yet it manages ( by comparison to South Africa ) with minimal installed grid generation and a large reliance on diesel . As such , liberalisation may not be given any impetus here as the decentralised grid infrastructure potentially meets Nigeria ’ s primary development goals .
Another consideration is that , despite a state ’ s failure to deliver adequate electricity services , governments in the region have adopted a protective approach in respect of the state utility companies . For example , in Botswana , to achieve the objective of becoming an exporter of electricity , the majority of both existing and planned generation assets are and will continue to be owned by the state utility company , with only a nominal amount of generation being allocated to independent power producers .
A further factor is whether there is a regulatory framework that allows for trading and wheeling of electricity in a country . For example , in Botswana , virtual supply of energy – in the way it is deployed in South Africa – is not permitted and electricity generated by private generators must be sold to the state utility company . In contrast , Zambia has a sophisticated private generation and virtual supply framework conducive to the evolution of a competitive sector .
Conclusion When considering developed , decentralised electricity markets , it is clear that liberalisation is only the first step . Electricity markets , regulations and technical infrastructure will need to continually evolve to cater for the unforeseen issues that will arise . Ultimately , flexibility of the South African government and all other participants in the electricity market will be vital in order to achieve a successful market reform . •
With the lowest regional generation capacity in the world , improving the electricity supply is critical to socioeconomic development in sub-Saharan Africa . www . africanmining . co . za African Mining Publication African Mining African Mining • July 2023 • 35