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 Markets

Bilateral Market- Bilateral Trading Objectives are mainly to meet long-term demand and supply balance

  • Trading arrangements mutually agreed between bilateral parties
  • Volumes and Prices are the key parameters
  • Transmission path to be secured in advance
  • Can be firm or non firm
    • Firm contracts
      • Have penalties for non delivery and
      • Generally not interruptible – reliability premium
    • Non Firm contracts
      • Are interruptible with notice
      • If notice given, no penalties
      • Generally less than 75% reliable.

Forward Physical Markets - Is competitive trading in monthly or weekly contracts (or any other defined periods longer than one day ahead) for future delivery according to the contract specifications.

The following energy contracts may be traded;

  • FPM-Monthly trades hourly energy base-load contracts for each of the 24 hours of all days in the following month.
  • Hourly energy base-load contracts for the following time-of-use contracts with different hourly patterns valid for all days in the following month;
  • Off-peak hours
  • Non off-peak hours
  • FPM-Weekly trade’s hourly energy contracts for the following time-of-use contracts with different hourly patterns valid for all days in the following week:
  • Off-peak hours
  • Peak hours
  • Standard

Day Ahead Market- is the regional market established within the SAPP with the objectives to trade electricity a day in advance of the delivery of such trades.

  • Hourly energy contracts for each of the 24 hours of the following day, or a future day.

Intra Day Market - The IDM is a continuous market, and trading takes place every day around the clock until one hour before delivery. Prices are set based on a first-come, first-served principle

  • Hourly energy contracts for one or more hours for periods as specified by the SAPP Market Operator.
Trading Governing Documents
  1. Market Book of Rules (set of rules as governing SAPP Market Operations)
    1. Agreement between all participants and Market Operator
    2. A living document but binding
  2. 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

For Access to the SAPP Market Public Website go to