South Africa - SAPP Market

South Africa is part of the Southern African Power Pool (SAPP), a regional electricity cooperation initiative created in 1995 that brings together the power system operators of 12 Southern African countries. The SAPP’s objective is to facilitate electricity exchange between countries, improve supply security, and promote efficiency through regional trade. In South Africa, the market is dominated by Eskom, a state-owned company that acts as the system operator and main generator.

The South African electricity system has historically been based on coal, which accounts for the majority of installed capacity. However, in recent years, an energy transition has begun towards a more diversified and inclusive mix of renewable energies.

In the coming years, South Africa’s electricity system and its participation in the SAPP will face significant challenges and opportunities: