An exploratory research into the desirability of regional Transmission organisations in Africa

Abstract

Africa is still regarded as a” Dark Continent” by many because electricity is still inaccessible to many parts of that continent. This has resulted in slow growth of socia1I and economic development. This is what prompted this research on how Africa could help herself. The research study attempted to find an answer to the following question: How could regional transmission organisations (RTOs) be used as an enabling vehicle for transmission infrastructure development in Africa? The research used the qualitative method to explore the viability and challenges of forming, RTOs in Africa. Three cases were studied, namely the USA's RTOs, Westcor and Motraco, for insight into RTOs in general and how they are formed in Africa. Interviews were conducted with experts and leaders in the electricity industry in South Africa and correspondence through e-mails with experts in other African countries. RTOs have been identified as a vehicle that could be used to expand the power grid infrastructure to the rest of Africa. NEPAD could facilitate the collaboration and raising of funds needed for such capital investments. The benefits of this research are that a debate on the formation of RTOs in Africa could be taken further and other entities such as Eskom could leverage their resources, create economic growth in Africa and hence improve the lives of Africans. It is recommended that further research be carried out to determine ways of measuring the Cost/benefit of RTOs in Africa. In the case where bilateral agreements existed between industrial users and suppliers, ways should be found of also supplying to residents a1t market competitive prices. It is also recommended that further detailed study of the nature, dynamics, strengths and weaknesses of the USA's RTOs be carried out. The study should also be done to find what Russia, China and India are doing regarding the RTOs or similar systems.