Published in April 2026 by the World Bank’s Energy Sector Management Assistance Program (ESMAP), this report provides guidelines for transmission pricing and cost allocation to support regional power trade. Its core material was prepared by Ignacio Pérez-Arriaga, Alberto Pototschnig and Mohamed A. Eltahir Elabbas.
The report examines how transmission charges can recover costs, distribute them equitably among beneficiaries and encourage investment without creating unnecessary barriers to cross-border electricity exchanges. It applies the “single system paradigm,” treating regional electricity trade as though it occurs within a single jurisdiction.
Practical guidance covers identifying transmission assets with regional relevance, allocating costs among countries, coordinating national and regional regulatory responsibilities, and addressing congestion and transmission losses. The report offers a useful resource for regulators, policymakers and power pool institutions working to strengthen regional electricity integration in Africa.
