NEWS

The African Development Bank has approved a USD 2 million technical assistance grant to support the development of a pioneering Southern African Power Pool (SAPP) Energy Storage Strategy, marking a major step toward modernizing Southern Africa’s power systems and unlocking more renewable energy across the region.

The grant, financed through the Fund for African Private Sector Assistance (FAPA) and approved by the Board, will help SAPP design a regional strategy to integrate energy storage solutions—such as battery systems and pumped hydropower—into its interconnected grid, serving 360 million people across 12 countries.

The project will be implemented under the Bank’s Africa Energy Sector Technical Assistance Program (AESTAP), which works to strengthen policy, regulation, power markets, and utility performance across Africa. By improving the ability of Southern African power systems to absorb growing volumes of wind and solar energy, the initiative will directly support the Bank’s Four Cardinal Points, High Five priorities—particularly Light Up and Power Africa—and advance the continent’s progress toward Sustainable Development Goal 7 (SDG7) and the Bank’s flagship Mission 300 objective of connecting 300 million Africans to electricity by 2030.

Southern Africa has some of the world’s highest potential for variable renewable energy (VRE), but inadequate transmission capacity limits the scale and stability of solar and wind deployment. Energy storage offers a transformative solution—balancing supply and demand, improving system reliability, reducing load shedding, deferring transmission investments and enhancing opportunities for investment and power trade across borders.

Despite this potential, SAPP currently has no regional strategy guiding the planning and deployment of energy storage infrastructure. The newly approved technical assistance project addresses that gap by:

• Developing a 15-year regional investment plan for energy storage
• Assessing current storage capacity and regulatory frameworks
• Designing a regional capacity-building program for ministries, regulators, and utilities
• Identifying two pilot energy storage projects and conducting pre-feasibility studies
• Supporting SAPP to integrate storage solutions into its Pool Plan and future transmission expansion

The Department of Energy Financial Solutions, Policy & Regulation of the AfDB, welcomed the board’s approval.

“Storage is the missing link that will allow the region to fully harness its vast solar and wind resources. By helping SAPP define a clear investment pathway, we are laying the foundation for greater private sector participation, stronger power markets, and a more resilient regional grid,” said Wale Shonibare, Director of Energy Financial Solutions, Policy & Regulation Department.

Once implemented, the project will position SAPP as a continental leader in VRE integration, improving system reliability, lowering carbon emissions, and catalyzing investment in generation, transmission, and distribution.

“SAPP’s existing Pool Plan addresses electricity demand-supply balance, but the rapid growth of variable renewable energy introduces significant grid integration challenges. Energy storage is a proven solution to these issues. The African Development Bank’s support for a regional Energy Storage Strategy will enable the Southern African region to establish a clear investment pathway, strengthen grid resilience, and accelerate renewable energy adoption,” said Steve Dihwa, Executive Director, SAPP Coordination Centre.

This initiative also aligns with the Bank’s support for regional power pools and its ongoing work on the Regional Transmission Infrastructure Financing Facility, which aim to mobilize blended finance for cross-border infrastructure.