An Outlook on a Future-Proof Regulated Cross-Border Electricity Market in Africa

This chapter provides an outlook on the perspectives and opportunities associated with electricity as a commodity in interconnected markets. Energy security is the backbone of the quest for interconnectivity for electricity supply. As the world, especially within developing nations, increasingly seeks to develop sustainable and secure energy systems; the integration of electricity markets across national borders has emerged as a viable option. This integration fosters improved energy security, market efficiency, and renewable energy integration. Additionally, cross-border electricity markets promote regional cooperation, improved grid stability, and development for economic growth. This is in alignment with the United Nations Sustainable Development Goals to improve energy access, economic development, and poverty eradication. The concept of cross-border electricity markets improves efficiency by allowing countries to share resources and energy assets. Africa is susceptive to poor public electricity supply, despite the desire to industrialise. This chapter delves into the possibilities for a future-proof electricity market through regulated affairs that involve participating countries across the African continent adopting electricity trade as a relative measure to curb energy poverty. The chapter discusses the background of cross-border electricity trading and presents a case study on existing markets in addition to providing an outlook for securing a future-proof electricity market for the continent. By exploring these perspectives, this chapter presents valuable insights for policymakers, researchers, and industry stakeholders to foster sustainable and efficient cross-border electricity trade.