SWAKOPMUND – The Southern African Development Community (SADC) region has been failing to meet the targeted annual requirements for new power-generation and transmission capacities for electricity.
This observation was made by the deputy minister of energy Kornelia Shilunga in a speech read on her behalf during the opening of the Regional Energy Regulators Association of Southern Africa’s (RERA) annual general meeting held in Swakopmund last week.
Shilunga said the supply of affordable electricity still remains a challenge, while the region is experiencing massive financial gaps in investments needed for building new generation, transmission and distribution capacities.
“Hence, there is a serious need for commitment to speed up the transition to cost-reflective tariffs or to devise alternative funding mechanisms to mitigate against electricity shortages and prevent a full-blown crisis in the long run in the region,” she added.
Shilunga said moving towards cost-reflective pricing for electricity across the region is only one aspect of the reforms, but it is a crucial step in assuring the sustainability of the electricity supply industry and attracting private investment to a sector in need of new capacity.
“We also need to be mindful that cost-effective energy services may be beyond the reach of the low- income or disadvantaged majority of the population in the SADC region. In this regard, consideration should be made to facilitate the low-income electrification support mechanisms, including tariff structures that allow for a minimum level of supply,” she urged.
“It is also important to ensure that the mechanisms put in place to cater for the low-income population should not compromise the sustainability of the electricity supply industry.”
Also speaking at the opening, chairperson of RERA Henry Kachaje said the organisation as a subsidiary has a duty to address regional energy challenges such as the limited access to clean and versatile sources of energy, diminished surplus generation capacity as well as constrained transmission capacity.
“It is against this backdrop that RERA chose ‘Enhancing Electricity Access and Performance’ as the theme for this year. We remain fully committed to working with member states, stakeholders and cooperating partners in addressing the various challenges that are stifling the development and competitiveness of the energy industry in the region,” Kachaje noted.
According to him, RERA is committed as an association to the mission of facilitating the harmonisation of regulatory policies, legislation, standards and practices, and to be a platform for effective cooperation among energy regulators within the SADC region.