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PLEXOS and the Sub-Saharan Africa Power Market

Insufficient and largely stagnated generating capacity, unreliable supply in the form of widespread power shortages and an increasing reliance on emergency power, escalating electricity prices and low rates of popular access to the electricity grid are the main characteristics of the sub-Saharan power generation sector.

In an effort to tackle the inefficiencies associated with the sub-Saharan Africa power supply, four regional power pools have been established to promote cross-border trade in electricity and incentivise capacity investment.

Despite high hopes for the power pools, power trading in the sub-Saharan Africa is still very limited, mostly taking place within the Southern Power Pool, between South Africa and Mozambique, while the engagement in trading activities in the rest of the markets is negligible.

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