• Energy Related Services

    SADC has a substantial deposit of energy resources ranging such as coal, hydro, oil and natural gas. For example, the regional total coal output is 265 million tonnes, of which South Africa accounts for 260 million. Of this, nearly 70 million tonnes is exported. However, development of the sector in the region remains challenging due to investment and technological requirements.  SADC Member States formulated a Protocol on Energy whose objective is to ensure the availability of sufficient, least-cost energy services that will assist in the attainment of economic efficiency and the eradication of poverty, whilst ensuring the environmentally sustainable use of energy resources.  Efforts to implement the Protocol include establishment of regional institutions  (such as Southern Africa Power Pool Plan-SAPP and Regional Electricity Regulators Association-RERA) and development of appropriate planning instruments.  While progress is being made to scale up access to energy, the region is experiencing power shortages, which has negatively affected trade, industry, delivery of social services and the general economic development. Through SAPP the region has being able to prepare regional plans and projections which allow coordination of overcoming power shortage challenges in the region.

    In 2008, the regional installed generation capacity was 9,855 2 MW; generating 1,214 KWh/capita/year providing access giving about 35% of the urban population. Regional peak load demand in 2009 was approximately 43.5 Gigawatts, of which South Africa accounts for 80%. Peak load capacity was 48.7 Gigawatts, and with so little spare capacity, load shedding is common. On the basis of planned investments in power stations, peak load capacity is forecast to rise to 77 Gigawatts by 2020 and 167 Gigawatts by 2040. Looking further into the future, the recent Nextant report forecasts an increase in power demand of 4% p.a. and estimates that a total additional generating capacity of 52 Gigawatts is required by 2025 (SADC Regional Infrastructure Master Plan).


    It is important to note that the negotiations on “energy-related services” will cover only a subset of activities related to improve the availability of energy in the region.  The standard services classification in W120 does not provide for a class of services with the  heading “energy services” but mentions energy related services under “other business services” such as services incidental to mining (on a fee or contract basis at oil or gas deposits, e.g. drilling, repairs and dismantling, etc.);  services incidental to energy distribution (transmission and distribution on a fee or contract basis of electricity, gaseous fuels, steam and hot water); and under Pipeline transportation of fuels (transport of oil and petroleum products and natural gas).  However, it is widely recognized that numerous other services are instrumental in the upstream and downstream production, transmission, and distribution of energy related goods and services.