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African Power Pools: How Regional Integration Can Strengthen Energy Security

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African Energy Chamber

According to the African Energy Chamber’s State of African Energy 2026 Outlook, Africa’s five regional power pools are key to reducing costs, improving reliability and attracting investment in electricity infrastructure

CAPE TOWN, South Africa, January 12, 2026/APO Group/ –Regional electricity integration could be a game-changer for Africa, helping countries address persistent electricity challenges and attract investment in energy infrastructure, according to the African Energy Chamber’s (https://EnergyChamber.org) State of African Energy 2026 Outlook. By developing larger, interconnected markets, nations can create alternative offtake solutions, reduce project risks and enable economies of scale. Five regional power pools have been established across the continent – Southern Africa, Eastern Africa, Western Africa, Central Africa and North Africa – to facilitate cross-border electricity trade, share resources and coordinate energy policies.

 

The Outlook notes that the Southern African Power Pool (SAPP) stands out as the most advanced. Its robust institutional framework, high degree of grid interconnection and transparent electricity market have enabled efficient trading and optimized resource use. SAPP serves as a model for regional integration, allowing member countries to benefit from reliable power exchanges and a diversified generation mix. Yet, even here, challenges remain: trading remains limited relative to total demand, liquidity is low and transmission constraints persist, highlighting the need for continued investment and market development.

By leveraging private investment alongside government support, these frameworks can mobilize capital, technology and expertise

West Africa’s power integration also shows promise. The Outlook highlights WAPP’s progress in expanding cross-border connections and increasing electricity trade, while noting that growth is constrained by incomplete grid links, regulatory fragmentation and financial issues such as payment arrears. Similarly, the Eastern Africa Power Pool is advancing through large-scale interconnection projects, but its development is slowed by political and regulatory fragmentation, infrastructure gaps and occasional security tensions. The Central African Power Pool remains the least developed, with minimal cross-border trade and limited infrastructure.

​​North Africa presents a contrasting picture: the region has some of Africa’s most advanced infrastructure, yet electricity trade is limited because countries primarily pursue bilateral agreements or focus on Europe-bound exports rather than intra-African integration. The Outlook emphasizes that across all regions, the African Union’s African Single Electricity Market aims to harmonize standards, regulatory frameworks and planning to create the world’s largest electricity market by 2040. Achieving this vision faces significant hurdles, including vast distances, technical incompatibilities, infrastructure needs, political fragmentation and differing national interests.

Even within the relatively mature SAPP, the Outlook identifies additional work needed to unlock market potential. Market liquidity remains a major constraint: in 2023, only 7.7 TWh was traded over the SAPP, compared with total demand of 344 TWh – roughly 2%. Around 80% of this trade comes from bilateral contracts, with just 13% conducted through the day-ahead market (DAM). In contrast, mature European markets trade more than 24% of physical consumption through DAMs, illustrating how limited trading scale in SAPP restricts its ability to stabilize the network. Transmission congestion also constrains trade: although blocked trades in the DAM fell from over 40% before 2018 to 1.3%, the Outlook notes this improvement reflects reduced activity rather than enhanced infrastructure. Addressing funding gaps and improving wheeling tariffs are critical to enabling the power pool to function at full potential.

The Outlook also highlights financing as a central issue across Africa, where public debt and fiscal constraints limit governments’ ability to fund large infrastructure projects. Innovative approaches such as public-private partnerships have emerged as vital tools for bridging these gaps. The Outlook identifies four main models for private-sector participation in transmission projects: Build-Own-Operate; Build-Own-Operate-Transfer; Build-Transfer-Operate; and Engineering, Procurement, Construction and Finance. Examples cited include the Kigali Power Transmission Project in Rwanda and the CLSG interconnector linking Ivory Coast, Liberia, Sierra Leone and Guinea, funded by multilateral institutions and regional governments.

“By leveraging private investment alongside government support, these frameworks can mobilize capital, technology and expertise to construct and operate critical transmission infrastructure,” says NJ Ayuk, Executive Chairman, African Energy Chamber, adding that regional electricity integration offers clear potential to lower costs, improve reliability and attract investment, “laying the foundation for a more secure, efficient and renewable-powered Africa.”

Distributed by APO Group on behalf of African Energy Chamber.

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Venezuelan Oil and Gas Opportunities Take Center Stage at African Energy Week (AEW) 2026

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Venezuela

The country is promoting new hydrocarbons contracts, upstream and refining opportunities, and technical partnerships with Africa to attract investment and strengthen local energy sector capabilities

CAPE TOWN, South Africa, October 14, 2026/APO Group/ –Venezuela is seeking to attract international investment into its oil and gas sector while building stronger energy partnerships with African countries. Revised hydrocarbon legislation offers new entry routes for private operators, while cooperation on technical training could help African markets draw on Venezuela’s industry expertise. These opportunities featured at the Venezuela Global Investment Forum during African Energy Week (AEW) 2026 in Cape Town.

 




 
 

Ricardo Gomez, Venezuela’s Vice Minister of Commercial Policy, outlined the country’s investment proposition, highlighting 303 billion barrels of proven oil reserves and 193 trillion cubic feet of natural gas.

“Venezuela combines a large hydrocarbon resource base with refining infrastructure and a market that needs reliable energy,” he said. “The opportunities extend from upstream projects to downstream and refining.”

The country’s amended Organic Hydrocarbons Law introduces new ways for international companies to enter the market. Hydrocarbon production participation contracts allow private operators to manage designated assets, oversee operations and market production under negotiated terms. Agreements can extend for 25 years, offering a longer investment horizon for field development and rehabilitation.

Restructured joint venture companies provide another route, retaining majority state ownership while allowing international partners to take on operational responsibilities through approved agreements. Direct ministerial contracts and strategic alliances offer additional opportunities in field redevelopment, oilfield services and infrastructure.

Venezuela is seeing a lot of interest as a result of aggressive fiscal and regulatory changes that are making the country more attractive

Potential investments span heavy-oil production in the Orinoco Belt, mature onshore fields, offshore gas, pipeline rehabilitation, export terminals and refinery upgrades. Venezuela’s target of signing 105 definitive oil contracts by year-end reflects its wider effort to attract operators and accelerate project development.

Scott Gilbert, CEO and Executive Director of Corcel Plc and Non-Executive Chairman of Apertura Energy, highlighted investor interest in the changing regulatory environment. “Venezuela is seeing a lot of interest as a result of aggressive fiscal and regulatory changes that are making the country more attractive,” he said.

Alongside these commercial opportunities, Venezuela is promoting its technical expertise through the Venezuelan University of Hydrocarbons (UVH). Celia Bejarano, the university’s President, explained how the institution trains engineers and geologists in geophysics, reservoir engineering, well management, natural gas and petrochemicals.

“The Venezuelan University of Hydrocarbons was created to deliver a specialized institution where the country can train its own recruits to develop its own premier resources,” Bejarano said.

Through its Africa-Venezuela Energy Partnership with the African Energy Chamber (AEC), UVH is advancing technical training, knowledge exchange and workforce development. The initiative could help African energy projects apply Venezuela’s experience in heavy-oil production and offshore engineering while strengthening local capabilities. Rene Awambeng, founder and managing partner of Premier Invest, highlighted this opportunity for African developers.

“When we are developing our assets here, we always import talent,” he said. “With the Venezuelan University of Hydrocarbons, we can actually leverage Venezuela’s immense experience to support local content development here in Africa.”

Also speaking during the discussion, NJ Ayuk, Executive Chairman of the AEC, emphasized the strategic value of closer ties between the regions. “Our energy industry has an amazing ally in Venezuela,” he said, describing the country as “open for business and ready to partner with Africa.”

Distributed by APO Group on behalf of African Energy Chamber.

 




 

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African Energy Chamber (AEC), S&P Global Energy Sign Five-Year Partnership for African Energy Week

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African Energy Week

S&P Global Energy has renewed and formalized a long-term relationship with AEW as the event connects African energy projects with investors and commercial partners

CAPE TOWN, South Africa, October 14, 2026/APO Group/ –The African Energy Chamber (AEC) (https://EnergyChamber.org/) and S&P Global Energy have signed a memorandum of understanding renewing their official partnership for the African Energy Week (AEW) conference and exhibition for five years, through the 2031 edition, establishing a long-term relationship around the continent’s energy investment platform.

 




 
 

The agreement was signed during the opening ceremony of AEW 2026 in Cape Town by Christian Nilsson, Chief Commercial Officer of S&P Global Energy, and NJ Ayuk, Executive Chairman of the AEC. It formalizes a partnership between one of the world’s leading market intelligence and research firms and Africa’s biggest energy conference, laying the foundation for long-term engagement and collaboration. The partnership is also set to produce a new State of Energy in Africa report, with findings to be shared at the conclusion of AEW 2026.

Africa competes for capital against every other region in the world, and the countries that win will be the ones that can show investors the numbers

S&P Global Energy provides market intelligence, data and analysis across energy and commodities. Its work supports commercial decisions on supply, demand, pricing and investment, which are areas relevant to African companies seeking capital and international investors assessing opportunities across the continent.

The partnership comes as African energy markets seek investment across upstream development, gas infrastructure, electricity generation, refining and industrial processing. Access to market information helps investors assess project economics, compare opportunities and understand the conditions influencing long-term returns.

“Africa competes for capital against every other region in the world, and the countries that win will be the ones that can show investors the numbers,” said Ayuk. “S&P Global Energy brings analytical rigor to AEW. Locking in this partnership through 2031 means the governments and companies that come to Cape Town will keep getting world-class data insights alongside the deals being signed on our stages.”

Considered Africa’s premier energy marketplace, AEW brings project owners and prospective partners together through investment forums, country spotlights, technical discussions, an exhibition and commercial meetings. The event program spans oil and gas, power, energy finance and emerging technologies, connecting policy discussions with the requirements of companies developing and funding projects.

The five-year agreement establishes a sustained relationship between the AEC and S&P Global Energy as AEW continues to connect African energy opportunities with global capital and expertise.

Distributed by APO Group on behalf of African Energy Chamber.

 

 




 

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Etu Energias, Chariot, BW Energy Sign Master Agreement at African Energy Week (AEW) 2026

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African Energy Week

The Master Agreement covers technical and financial collaboration, strengthening a partnership between the companies

CAPE TOWN, South Africa, October 14, 2026/APO Group/ –Angola’s Etu Energias has signed a Master Agreement with Chariot and BW Energy covering technical and financial collaboration. The agreement aims to support Etu Energias’ growth strategy in Angola and reflects a shared ambition between the parties to build a long-term and growing relationship for the benefit of all stakeholders.

 




 
 

The agreement was signed during the opening ceremony of African Energy Week 2026 by Edson Dos Santos, CEO of Etu Energias; Duncan Wallace, CTO and Board Member of Chariot; and Ali Athar, Senior Vice President of Finance and Accounting at BW Energy. It demonstrates continued confidence in Angola’s upstream sector as well as the capacity of the country’s indigenous companies. Etu Energias, Angola’s first private oil and gas exploration company, has grown production to 25,000 bpd within five years and is targeting 100,000 bpd by 2030. The agreement aims to improve access to commercial solutions and capital with the goal of supporting long-term sector development.

The signing follows a framework agreement announced by Chariot on September 1 between Etu Energias, BW Energy and Chariot to support Etu’s acquisition of Chevron’s additional 31% interest in Angola’s Block 14 and 15.5% interest in Block 14K. The partnership established a basis for technical and operational support as Etu seeks to assume operatorship of Block 14, with Shell Western Supply and Trading providing the acquisition debt funding.

For Etu Energias, the transaction supports its ambition to expand production and operating capacity in Angola. Already a stakeholder in the licenses, the company brings knowledge of the assets, while BW Energy and Chariot contribute complementary technical expertise.

For BW Energy, the framework marks a strategic entry into Angola and an extension of its West African growth strategy. An August company announcement identified opportunities to develop nearby reservoirs through connections to existing infrastructure, optimize production and reduce operating costs. BW Energy’s support gives it economic exposure to future cash flows corresponding to approximately 8,000 bpd, subject to completion and applicable approvals.

For Chariot, the September agreement adds economic exposure equivalent to approximately 4,000 bpd in return for services and support. Shell Western Supply and Trading’s role centers on acquisition financing. The company will provide all acquisition debt funding required at completion of the Chevron transaction.

Distributed by APO Group on behalf of African Energy Chamber.

 




 

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