System adequacy in the Southern African Power Pool: A case for capacity mechanisms

Abstract

The requirement for increased investment in electrical energy infrastructure in the Southern African Power Pool (SAPP) region is contextualised. Background on the SAPP is provided for reference. A brief assessment of historical capacity adequacy in the SAPP region shows historically sustained levels of inadequacy as well as distinctive investment cycles primarily as a result of administratively determined generation capacity investments within each member country. The introduction of an appropriately designed capacity mechanism is proposed for SAPP to facilitate system adequacy and incentivise long-term capacity investment.