CASE STUDY
Botswana–South Africa Transmission Line Project
Market Analysis and Modelling

Project Details

  • Client
    BOSA
  • Date
    2016.02–2017.07
  • Lead
    Aurecon AMEI Ltd
  • Associate
    Enerweb

An interconnector between South Africa and Botswana is required due to the regional shortfall in generation capacity and congestion on the various transmission lines.

The key drivers for the Botswana-South Africa (BOSA) interconnector were primarily to alleviate congestion on the Matimba-Phokoje-Insukamini line, improve the power pool stability between strong and weak systems, improve system control and reliability, improve regional trading and provide redundancy on the SAPP fibre network. Enerweb partnered with Aurecon on the project, with the Enerweb focus being on the market assessment and SAPP regional business modelling, identifying constrained and unconstrained energy flows across the region under various scenarios.

The objective of the project was to determine the feasibility of the interconnector where a baseline network model had to be developed and the energy to be transmitted via the interconnector be evaluated under various scenarios. Enerweb’s responsibility was the market assessment and SAPP business modelling.

SAPP Market Assessment and Business Modelling (inter-country energy flow). Enerweb covered the following aspects in this comprehensive study:

  • Assess regional economic growth forecasts to determine potential future load centres in relation to the proposed project.
  • Review historic, current and projected demand and supply balance in the SAPP area to identify cross-border trading market potential via the proposed line. This included analysis of historic SAPP day-ahead market bids/offers to determine lost opportunities.
  • Identify planned generation projects, associated power evacuation routes and potential utilisation of the proposed project to evacuate the power to the market.
  • Review the current and envisaged bilateral cross-border Power Purchase Agreements (PPAs) and Power Sales Agreements (PSAs) volumes in the SAPP to determine the potential utilisation of the proposed project.
  • Review the capacity status of the existing transmission interconnectors to determine the potential for the proposed project to complement existing infrastructure and unlock further cross-border trading of electricity.
  • Assess the potential for transmission capacity reservation on the proposed project for utilisation by the SAPP Day Ahead Market (DAM), Intraday market and other future SAPP markets as a source of revenue stream and to complement the vision of the SAPP to migrate towards a competitive regional electricity market.
  • Assess the SAPP trading rules and their implications for the project and the implications of the project on the existing SAPP market rules.

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