Market Overview

SAPP Trading arrangements are meant to fulfill the vision of SAPP which is to:

  • Facilitate the development of a competitive electricity market in the Southern African region.
  • Give the end user a choice of electricity supply.
  • Ensure that the Southern African region is the region of choice for investment by energy intensive users.
  • Ensure sustainable energy developments through sound economic, environmental & social practices.
  • STEM, was initially used in SAPP and currently DAM system is being used .The pool moved from a cooperative to a competitive pool

SAPP Current Trading Portfolios

  • Bilateral Trading Objectives are mainly 
  • To meet long term demand and supply balance
  • To underpin Generation and Transmission Investments
  • Over The Counter Trading (OTC) Objective is 
  • To meet short term demand and supply balance
  • DAM Trading Objectives are mainly
  • To optimize supply & demand portfolios in a bid to minimize cost of supply and maximize participants profits
  • Assists in managing load and generation fluctuations
  • Bilateral, OTC and DAM trading complement each other and are not meant to compete against each other
  • Post DAM Objectives are
  • To mainly settle all the outstanding requirements after the actual DAM Trading has been done

DAM Governing Documents

  1. DAM Book Of Rules
    1. Agreement between all participants and Market Operator
    2. A living document but binding
  2. DAM Participation Agreement
    1. Agreement between each participant and Market Operator

Implementation Structure

  1. Markets Sub Committee
  2. Market Surveillance & Monitoring Team
  3. Market Operator
  4. Control Areas and TSOs for Dispatch, Scheduling & Imbalance management