AREP 2022-2026 - AREP 2022-2026 MDTF AREP 2022-2026 Regional elhandel i Afrika, integrering av regionala transmissionsnät och utveckling av förnybar energi. The AREP MDTF was set up as a trust fund (TF) in 2016  to complement a $20 million IDA-funded Southern African Power Pool (SAPP) Program for accelerating planning and implementation of energy projects in Southern Africa (SAPP AREP). The World Bank launched during 2019 a MDTF 2.0 proposal to a broader group of donors. 
During 2019, AREP MDTF was integrated under the ESMAP/MARCOT umbrella within the World Bank (Energy Sector Management Assistance Programme and the Markets, Connectivity and Trade program). It has given AREP more financial and staff resources. It has also linked AREP to the global work to assist developing countries to create functional energy markets. 
Since then, discussions with the regional power pools in Western and Central Africa has continued to include them under the AREP umbrella. A funding proposal for a second phase 2022-25 of the Advancing Regional Energy Projects in Southern and Eastern Africa Multi-Donor Trust Fund (AREP MDTF), was presented during the spring of 2022 by the World Bank. The proposal includes activities during 2022-25 (4 years) totalling USD 81 million, divided on SAPP 17,2 mUSD, EAPP 15,5 mUSD, CAPP 5 mUSD and WAPP 43,6 mUSD. Approximately USD 56 million is available from funding - from the World Bank 36 mUSD, Sida remains 5,2 mUSD, Norad 10 mUSD, other donors 4,5 mUSD. A funding gap of appr. USD 25 million thus exists. The World Bank has requested Sida to consider part of the gap. This appraisal thus covers the entire AREP program goals, structure and volume, while the Swedish additional contribution will be depending availability of regional funds, initially scoped to be 106 million SEK but with a possibility to increase.
The budget and activity plans for 2022-26 are focusing on the following issues;
Regional integration of electricity transmission grids will facilitate decarbonisation of existing power systems and enable growth with a high proportion of renewable electricity. The integration enables the use of a larger proportion of renewable energy. Further, regional integration of electricity grids will benefit the environment as the need for building new generation plants will be reduced, co-use of common resources will increase and the opportunity to replace fossil fuels, especially in Southern Africa (coal) and Northern Africa (oil and gas) with solar and wind parks.
The overall rationale for AREP is that it will bring huge benefits from regional trading - 37 bn$ to be saved in SADC only, compared to "no trading". Further it could reduce operational costs and tariffs, enhance security of electric supply and give more opportunities to develop renewable (variable) energy (solar/wind). 
Regional cooperation is also deemed effective as it builds common trust, interdependency and creates win-win cooperation between  individuals, organisations and nations.
There are however risks involved as lack of political commitment for regional cooperation and integration, unwillingness to commercialize energy trade, and corruption in the implementation of activities.
The expansion to Central and West Africa is positive as it will give the opportunities to share experience and boost implementation for new partners. The higher-level development objectives for the contribution are similar for for the four power pool regions in Africa covered Sothern Africa(SAPP), Eastern Africa (EAPP), Central Africa(CAPP) and West Africa (WAPP):

The Overall SDG7/ESMAP outcome for all regions are:
i) Ensure access to affordable, reliable, sustainable and modern energy for all (SDG7).
ii) Electricity sector carbon intensity reduced.
iii) Increased access to electricity supply.

The Programme Outcomes for all the regions are:
1. Electrical regional transmission networks developed and in operation (number of countries interconnected and transmission capacity increased).
2. Climate change resilient power generation developed, which in fact relates to reducing the coal (Southern Africa) and oil (Western and Central Africa) dependency in favour of solar and wind and more optimised use of hydropower resources affected by climate change - this also has a key adaptation aspect.
3. Transmission networks developed to allow expansion of Variable Renewable Energy (VRE) generation which is key for decarbonisation and cost saving.
4. Electricity trade increased among power pool members and trading mechanisms are developed and operational in all four regions (million $ and TWh).
5. Financing facilitated and mobilized for investments in energy sector infrastructure, including from private sources (million $).

The anticipated outputs are identified in the areas of hard infrastructure (RE and transmission projects prepared, financed and implemented), soft infrastructure (regional master plans, technical operational guidelines for interconnecting grids etc.) and trading/commercial regimes (standard agreements, procedures for commercial contracts, operational guidelines for bourses etc.).