Southern African Nations Expanded Regional Power Trade
Member states have pushed for increased electricity wheeling to integrate grids and improve regional energy security.
Updated on Oct. 3, 2026 in Utilities
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The Southern African Development Community is advancing a plan to boost regional electricity trade through expanded wheeling agreements. This initiative seeks to better distribute the regional generation capacity of 60.8 GW to meet the current peak demand of 50.1 GW.
Why it matters
Regional energy trade has stalled recently due to supply constraints in South Africa and drought-related impacts on hydropower. Expanding transmission infrastructure is essential to connect surplus markets like Angola to neighbors facing energy deficits.
The Southern African Power Pool manages a combined generation capacity of 60.8 GW against a regional peak demand of 50.1 GW. Bilateral agreements currently account for up to 90% of electricity traded within the 12-member block.
The players
Southern African Power Pool
This cooperative organization coordinates electricity generation and transmission among 12 member states in Southern Africa.
World Bank
This international financial institution provides loans and technical assistance to developing countries for infrastructure and economic projects.
Development Bank of Southern Africa
This regional development finance institution promotes economic growth and infrastructure development throughout the Southern African region.
The details
Electricity wheeling allows independent producers to transport power across third-party transmission networks for a fee, turning existing grids into active regional markets. New projects, such as the US$223 million ZIZABONA interconnector, are designed to link inland nations and create a unified regional transmission backbone by 2027.
Timeline
The Southern African Power Pool was established in 1995.
Bilateral utility agreements dominated electricity trade between 2023 and 2024.
The World Bank approved US$12 million in technical assistance in November 2025.
Construction of the ZIZABONA interconnector is scheduled to begin in 2026.
ZIZABONA interconnector commercial operations are expected in 2028.
Market Landscape
The push for integrated wheeling follows the established precedents of the Southern African Power Pool transmission integration framework. This transition marks a departure from fragmented bilateral deals toward a multilateral market designed to stabilize supply against regional economic shifts.
The expansion of regional transmission networks aims to reduce reliance on individual national grids that are prone to localized outages. For the average subscriber, successful grid integration could lead to more stable electricity pricing and improved reliability as power becomes easier to move across borders.
The takeaway
Regional power trading offers a path to energy security by leveraging the surplus generation capacities of specific member states. Investors and residents should monitor the 2027 deadline for connecting all 12 inland nations as a key indicator of regional infrastructure progress.
What happens next
Construction of the ZIZABONA interconnector is set to begin in 2026, with commercial operations targeted for 2028.
Further reading
Learn more about the evolving landscape of Utilities to understand how grid integration projects are transforming regional energy markets.
Source note: This article includes information reported by Green Building Africa.
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