South Africa and Norway should work together to develop new forms of renewable energy and increase the use of mature technologies to fight climate change and poverty, the Norwegian Ministry of Petroleum and Energy State Secretary Robin Kåss said on Thursday.

Addressing stakeholders at a round table discussing the critical success factors for South Africa's future renewable energy power development, he reiterated that there was an "urgent need" for more renewable energy to meet greenhouse gas emission reduction ambitions, as well as meeting increasing demand for power. Fossil fuels should be made cleaner and more efficient, he added.

Kåss commended the signing of the agreement between Sasol and Norwegian State-owned oil and gas company Gassnova earlier in the week, which gave the South African petrochemicals giant the possibility of being involved in carbon capture and storage research at the technology centre in Mongstad, Norway.

He further stated that it was important to have effective power markets and grids.

Kåss noted that in 1991 the power market was liberalised in Norway, and in 1993 the market trader, Nordic Power Pool, was established. He said that the success of the power pool, came from the commitment to the regional power pool. He encouraged South Africa to learn from the successes of the Nordic example.

SOUTHERN AFRICAN POWER POOL (SAPP)

Although previously earmarked to begin openly trading power in November, it was understood that open trading was likely to begin on December 15.

Trading power between countries in the Southern African region was not a new concept, however, it previously took place through bilateral agreements.

Norwegian power trading company Nord Pool was assisting with the establishment and implementation of the SAPP power trading market.

Nord Pool Consulting AS MD Hans-Arild Bredeson explained that of the 56 000 MW of electricity generating capacity within the SAPP, some 53 000 MW of capacity was connected through the system.

He added that the benefits of implementing such a system was the ability to link together electricity production facilities, so that a surplus could be used in another area where there may be a deficit.

The power was dispatched on the basis of a merit order. "The more interconnections you get, the more dispatches based on merit order, and you can have the optimum use of your resources. Economies of scale produce advantages," he noted.

"The benefits also include an increase in security and reliability of supply. You can help each other in shortage times, and there is a good balance in the energy mix," stated Bredeson.

"It will help to get investment into the region," he added, stating that foreign investors were attracted to good sustainable market solutions.