SADC Expanded Electricity Wheeling to Boost Power Trade
Cross-border grid integration will allow businesses to source power from independent producers across the region.
Updated on Oct. 3, 2026 in Utilities
Live Poll
Should your region prioritize cross-border electricity sharing to improve local energy stability?
The Southern African Development Community has prioritized expanded electricity wheeling to facilitate regional power trade and bypass supply constraints. This shift aims to integrate 12 member states into a unified transmission network by 2027.
Why it matters
Regional trade has suffered recently due to drought and instability in South Africa, forcing energy-dependent operators to seek more reliable cross-border supply routes. Increased wheeling allows for better utilization of regional surpluses, potentially stabilizing costs for commercial power users.
The Southern African Power Pool manages 60.8 GW of generation capacity against 50.1 GW of peak demand, with the ZIZABONA interconnector project requiring US$223 million in funding. The region requires US$40.8 billion in annual energy investment by 2040 to meet its renewable and access targets.
The players
Southern African Development Community
An intergovernmental organization focused on economic integration and regional development across 16 member states.
Southern African Power Pool
A collaborative organization of national utilities facilitating the reliable and economical supply of electricity across the region.
Development Bank of Southern Africa
A state-owned development finance institution that provides long-term investment for infrastructure projects in the region.
World Bank
A multilateral development institution that provides financing and technical support to countries for major infrastructure and development projects.
The details
Electricity wheeling allows an independent power producer to move electricity through a third-party utility network to an end-user, with the transmission owner collecting a fee for the transit. The ZIZABONA interconnector, which is scheduled to begin construction in 2026, serves as a critical link in this strategy by providing a 422 km transmission path. As inland nations connect to the broader network by 2027, companies may gain more options to source energy from surplus generators like Angola.
Timeline
1995: Southern African Power Pool was established.
2023-2024: Bilateral utility agreements dominated electricity trade.
November 2025: World Bank approved US$12 million technical assistance.
2026: ZIZABONA interconnector construction scheduled to begin.
2028: ZIZABONA interconnector commercial operations expected.
Market Landscape
This move to expand wheeling protocols marks a strategic evolution of the Southern African Power Pool's regional energy trade protocols. It follows a period of decline in cross-border power trade caused by supply constraints in major hubs like South Africa.
Operators in the region should monitor the ZIZABONA project timeline as a signal for potential improvements in energy supply reliability. Future energy procurement strategies should account for the upcoming ability to source power through broader regional wheeling agreements.
The takeaway
The move toward a unified regional grid signals a shift away from restrictive bilateral power deals toward a more flexible market for commercial energy. Business owners should track the 2027 integration deadline to evaluate whether third-party wheeling could lower their long-term power costs.
What happens next
Construction of the ZIZABONA interconnector is scheduled to begin in 2026, with commercial operations targeted for 2028.
Further reading
For more on how infrastructure shifts impact regional power markets, visit the Utilities section.
Source note: This article includes information reported by Green Building Africa.
Live Poll
Should your region prioritize cross-border electricity sharing to improve local energy stability?
