How regional integration can strengthen energy security

Regional electricity integration could be transformative for Africa, helping countries overcome persistent power shortages and attract investment in energy infrastructure, according to the African Energy Chamber’s State of African Energy 2026 Outlook. By developing larger, interconnected electricity markets, countries can reduce project risk, create alternative offtake solutions and achieve economies of scale. To this end, five regional power pools have been established across Africa – Southern, Eastern, Western, Central and North Africa – to promote cross-border electricity trade and policy coordination.The Outlook identifies the Southern African Power Pool (SAPP) as the continent’s most advanced. Its strong institutional framework, extensive grid interconnection and transparent electricity market have enabled more efficient trading and better use of generation resources. SAPP serves as a benchmark for regional integration, offering member states improved reliability and a diversified energy mix. However, challenges persist. Electricity trading remains limited relative to demand, market liquidity is low and transmission constraints continue to hinder growth, underscoring the need for further investment.Power integration in West Africa is also progressing. The Western Africa Power Pool (WAPP) has expanded cross-border links and increased electricity trade, but its growth is constrained by incomplete grid connections, regulatory fragmentation and financial challenges such as payment arrears. Similarly, the Eastern Africa Power Pool is advancing through major interconnection projects, yet development is slowed by political and regulatory complexity, infrastructure gaps and occasional security concerns. The Central African Power Pool remains the least developed, with minimal infrastructure and limited cross-border trade.Different dynamicNorth Africa presents a different dynamic. While the region has some of Africa’s most advanced electricity infrastructure, intra-African trade remains limited, as countries prioritise bilateral arrangements or electricity exports to Europe. Across all regions, the African Union’s African Single Electricity Market aims to harmonise standards and regulations to create the world’s largest electricity market by 2040, though significant technical, financial and political hurdles remain.Even within SAPP, market limitations are evident. In 2023, only 7.7 TWh was traded compared with total demand of 344 TWh – about 2%. Most trade occurs through bilateral contracts, with just 13% via the day-ahead market, far below levels seen in mature European markets. Transmission congestion and funding gaps further restrict trading potential.Financing remains a critical challenge across Africa, given high public debt and fiscal constraints. The Outlook highlights public-private partnerships as essential to bridging infrastructure gaps, citing projects such as Rwanda’s Kigali Power Transmission Project and the CLSG interconnector in West Africa.“By leveraging private investment alongside government support, these frameworks can mobilise capital, technology and expertise,” says African Energy Chamber Executive Chairman NJ Ayuk, adding that regional integration can lower costs, improve reliability and attract investment, laying the foundation for a more secure and efficient African power system. – Distributed by APO on behalf of the African Energy Chamber.

How regional integration can strengthen energy security

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Republikein 2026-01-13

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How regional integration can strengthen energy security

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Republikein 2026-01-13

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