Annex 1
Guidelines for cooperation
Pursuant to Articles 3 and 10 of the Energy Protocol of the Southern African Development Communityu, the following sets forth guidelines for cooperation in the Energy Commission (hereinafter the “Commission’). It should be noted that the Energy Protocol should be implemented within the context of the principles of a regional energy cooperation policy and strategy (hereinafter “the Policy”). The Technical Unit shall propose and when necessary update the Policy for the approval by the Committee of Ministers. The Policy shall emphasise the development of energy in the support of regional integfration and socio-economic developmetn and address, inter alia, the following issues:Energy tradeIntegrated resource planningEnergy efficiency and conservationDemand-side managementEnergy pricingPrivate sector and NGO involvementCompetitionTraining and organisation capacity buildingGenderResearch and development and fundingEnergy investment and fundingEnvironmentInformation collection, processing and disseminationInter-sectoral and intra-sectoral issues, andOther cross cutting issues.To the extent possible, the Policy shall complement national energy policies of Member States. It shall be the primary mission of each subsector to enhance the provision of energy co-operation and integration.Presently, the subsectors within the Energy Sector include the following: Electricity, Petroleum and Natural Gas, Coal, Woodfuel, New and Renewable Energy Sources and Energy Efficiency and Conservation. This list of subsectors is not exclusive and, when appropriate, could be extended to include other relevant subsector s or cross-cutting themes of interest to stakeholders, Member States and the Commission as set forth in Article 3.1.ElectricityThe electricity subsector of SADC shall strive towards an integrated power system that would be productively used and optimally managed in an environmentally sound manner. Within this context, the following sets forth guidelines for regional integration and cooperation:a)Promote electricity trading and power pooling such as that described in the Southern African Power Pool (SAPP) Intergovernmental Memorandum of Understanding, the SAPP Agreement between Operating Members, all as adopted by the Member States.b)Promote integrated resource planning in the electricity subsector to take advantage of enonomies of scale and optimization of investment and equitable sharing of benefits.c)Coordinate the development and regular updating of a regional ectricity master plan.d)Promote the evolution of common regional standards, rules and procedures relevant to the generation, transmission and distribution of electricity, including the standardization of electrical manufacturing facilities, particularly in areas in which the region holds a comparative advantage.e)Develop and utilise electricity in an environmentally sound manner, and subject electricity projects to environmental impact assessments in conformity with agreed basic environmental standards.f)Emphasise the provision of universal and affordable service to all citizens and the importance of quality customer service in national electricity policies.g)Encourage agreements between member States and non-member States, and, on regional electricity development and trade, so long as such agreements are in accordance with Article 4 of the Protocol.2.Petroleum and natural gasMember States should promote cooperation in the development of all aspects of the Region’s petroleum resources. Likewise, natural gas continues to grow in importance and is a resource that exists variously throughout the region such as in Angola, Mozambique, Namibia, South Africa, and Tanzania. Hence, regional cooperation will be necessary in the development and user of natural gas. Combining these two broad objectives, the following sets forth applicable guidelines.a)Petroleum exploration (upstream)i)Member States should take an integrated approach toward the exploration of geological structures which transgess national borders. This may invariably necessitate joint negotiations with petroleum companiesii)Member States should coordinate, and where possible, jointly undertake promotional activities.iii)The Commission shall facilitate exploration activities in the Region;iv)The Commission should strive to harmonise laws, regulations and agreements governing exploration activities in order to support exploration programmes. Particular emphasis should be placed on matters relating to the environment, health, safety and security.v)A regional petroleum data base shall be established.(b)Petroleum downstream(i)Member States should create an enabling legal and fiscal environment which promotes, enhances and facilitates cross-border trade and transport of petroleum products and natural gas.(ii)The Commission should devise procedures relating to the introduction of new petroleum products, product specifications and, where appropriate, technologies that may have a significant regional impact.(iii)The Commission should promote the joint procurement of petroleum products to take advantage of economies of scale.(iv)The Commission should encourage joint development and establishment for refining, storage and transmission facilities and sharing of excess capacity.(v)The Commission shall promote extensive exchange of information relative to petroleum and natural gas through the development of a regional data bank, staff exchange and interaction, and closer institutional liaison.3.CoalThe Region has an abudance of coal, primarily located in Botswana, Malawi, Mozambique South Africa, Swaziland, Tanzania, Zambia and Zimbabwe. The supplies are generally site-specific and often bulky to transport. The guideline that should be followed are:(a)More deliberate efforts should be implemented to substitute coal for woodfuel. To this end, the Commission shall develop a strategy for expanded coal utilisation considering such issues as cost, efficient coal stove development, coal briquetting, coal gasification and the use of coal bed methane.(b)Clean coal technologies available in the world markets which may improve efficiency in operation and mitigate environmental degradation should be sought.4.WoodfuelWoodfuel is recognised as a predominant source of energy throughout the region, presently and in the future. Accordingly, the goal of the Commission should be to develop, enhance and facilitate cooperation at a regional level relative to the provision and use of woodfuel in a sustainable, rational and environmentally benign matter. In so doing, it should be recognised that biomass has several end-uses, such as the provision of fuel, fodder, food, farming, construction and forestry products.Moreover, most problems in the woodfule sector are local and site-specific in character and therefore, solutions to the biomass problems would eminate largely from local communities. In light of this, the following sets forth guidelines for regional cooperation:(a)Promote local community participation in policy formulation and implementation, with special attention on the gender dimension.(b)Strengthen institutional capacity in the woodfuel subsector, particularly with respect to training, data collection and information dissemination.(c)Encourage applied research.(d)Improve woodfuel end-use efficiency and seek acceptable alternatives to woodfuel.5.New and renewable sources of energyLike woodfuel and coal, new and renewable sources of energy (hereinafter “NRSE”) are generally site-specific. Applications often take the form of biogas, windmills, min-hydroplants, passive solar design of buildings, photovoltaics, solar thermal, and solar stoves and water heaters. The potential is great for use of renewables in the region. The following lists the guidelines of a strategy to promote increased production and use of renewables in an economically and socially acceptable manner.(a)The Commission shall develop appropriate financing mechanisms suitable for the development of NSRE.(b)Member States shall consider the implementation of suitable tax regimes that promote the development and use of NRSE.(c)Member States shall strive to create an enabling environment for provate sector involvement in NRSE.(d)The Commission shall provide, upon request and to the extent possible, technical support to governments and non-governmental organisations involved in the NRSE sub-sector.(e)Member States shall include cost-effective NRSE applications in their public investment programmes.6.Energy efficiency and conservationAs energy resources in the Region are not inexhaustible, everyone should be encouraged to use energy judiciously and efficiently, regardless of which source of energy is consumed. Energy efficiency and conservation applications have minimal adverse impact on the environment, relative to other energy applications. Moreover, these applications reduce the amount of capital, investment in energy development. Also, energy conservation cuts across various energy sectors. In view of this, it is important that this sub-sector increase its visibility and importance. Therefore, the following sets forth the guidelines for this subsector:(a)Encourage the development of national energy efficiency and conservation plans;(b)Develop increased training opportunities for energy efficiency and conservation;(c)Target reduction in commercial energy intensity by an achievable and measureable percentage per annum;(d)Encourage the involvement of independent energy managers and energy services in energy conservation;(e)Involve utilities and other energy providers in energy efficiency schemes through demand side management and other appropriate means of energy conservation;(f)Utilize pricing as an instrument of energy efficiency and conservation where appropriate; and(e)Identify and minimise constraints for more efficient use of energy.