Historically electricity trading in Southern Africa started in the early 1960 as bilateral trade after the commissioning of the Kariba Hydro Power Station situated on the border between Zambia and Zimbabwe. The great hydro potential of the Zambezi River gave rise to the commissioning of more plants. This saw the extension and more bilateral electricity trading arrangements being put in place. The Southern African Power Pool (SAPP) was created in April 1995 through the SADC treaty to optimise the use of available energy resources in the region and support one another during emergencies. At the time of creation, the SADC governments agreed to allow their national power utilities to enter into the necessary agreements that regulate the establishment and operation of the SAPP. The past, the present and the future of SAPP would be addressed in this paper. SAPP is transforming from a cooperative into a competitive pool.
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