ECOWAS Sustainable Energy Week
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1 ECOWAS Sustainable Energy Week Towards a Viable and Robust Energy Market in the ECOWAS Region Presentation by: Mr. Siengui A. Ki Secretary General of WAPP Accra, Oct 17, 2016
2 PRESENTATION OUTLINE A. BACKGROUND B. HOW TO ACHIEVE THE VISION? C. ECOWAS MASTER PLAN FOR THE GENERATION AND TRANSMISSION OF ELECTRICAL ENERGY D. STATUS OF IMPLEMENTATION E. MOVING FORWARD F. CONCLUSION
3 West African Power Pool BACKGROUND
4 Why WAPP? Despite abundant energy resources within the region Insufficient installed/available generation capacities in all ECOWAS Member States Supply/Demand Imbalance characterised by chronic load shedding WEST AFRICAN POWER POOL DEVELOPMENT OF POWER SUPPLY INFRASTRUCTURE Hydro & Thermal Interconnection lines (MASTER PLAN) DEVELOPMENT OF A REGIONAL POWER MARKET (Optimization of resources use) 4
5 Establishment of WAPP Establishment: WAPP was created in 1999 by Decision A/DEC. 5/12/99 and established in 2006 through Decisions A/DEC. 18/01/06 and Decision A/DEC. 20/01/06 by the Authority of ECOWAS Heads of State and Government. Vision: The WAPP was created to integrate the national power systems into an unified regional electricity market with the expectation that such mechanism would, over the medium to long-term, ensure the citizens of ECOWAS Member States with a stable and reliable electricity supply at affordable costs. Mission: To promote and develop infrastructure for power generation and transmission, as well as, to assure the coordination of electric power exchanges between ECOWAS Member States.
6 Members of WAPP in 2016 (29#)
7 Organisational Structure GENERAL ASSEMBLY MDs of WAPP Member utilities EXECUTIVE BOARD Responsible for execution of WAPP policies and decisions EOC SPEC FC HRGC DCC ORGANISATIONAL COMMITTEES GENERAL SECRETARIAT WAPP Donors Coordination Committee Information & Coordination Centre Administration & Finance Department Planning, Investment Programming & Environmental Safeguards Department
8 Regional Energy Sector Coordination
9 ONGOING STRATEGY TO ACHIEVE VISION IMPLEMENTATION OF MASTER PLAN DEVELOPMENT OF WAPP INFORMATION AND COORDINATION CENTER REGIONAL ELECTRICITY MARKET
10 West African Power Pool ECOWAS MASTER PLAN FOR THE GENERATION AND TRANSMISSION OF ELECTRICAL ENERGY
11 1 st Master Plan adopted by ECOWAS Council of Ministers in 1999 through Regulation C/REG.7/12/99 Master Plan was revised in 2005 and adopted by the ECOWAS Heads of State and Government through Decision A/DEC.7/01/05 Revised Master Plan was updated in 2012 and adopted by ECOWAS Heads of State and Government through Supplementary Act A/SA.12/02/12 Process has begun to achieve an update of the Master Plan in 2018
12 Adopted by ECOWAS Heads of State and Government in February 2012 through Supplementary Act A/SA. 12/02/12 Outcomes ( ): A Total Investment Requirement = US$26.42 billion
13 REALISATION OF THE ECOWAS REVISED MASTER PLAN SHALL RESULT IN AN ENERGY MIX WITH 10% OF RENEWABLE ENERGY BY 2025 AS FOLLOWS 13
14 27/08/11 14
15
16 WAPP Before 2006 WAPP Today WAPP in 2019 Inter Zonal Hub North-Core OMVG-OMVS MALI SENEGAL NIGER GAMBIA GUINEA BISSAU GUINEA SIERRA LEONE BURKINA FASO CÔTE GHANA D IVOIRE BENIN TOG O NIGERIA CLSG LIBERIA Coastal Backbone Implementation Road Map 16
17 West African Power Pool STATUS OF IMPLEMENTATION OF PROJECTS
18 Summary Implementation Schedule Interconnection in service before WAPP Interconnection in service under WAPP Interconnection under implementation Power Generation in service under WAPP Power Generation under implementation MALI NIGER SENEGAL THE GAMBIA GUINEA BISSAU BURKINA FASO GUINEA BENIN TOGO SIERRA LEONE CÔTE D IVOIRE LIBERIA GHANA NIGERIA
19 Summary Implementation Schedule Interconnection in service Interconnection in service under WAPP Interconnection under implementation Interconnection under preparation Power Generation in service under WAPP Power Generation under implementation MALI NIGER SENEGAL THE GAMBIA GUINEA BISSAU BURKINA FASO GUINEA BENIN TOGO SIERRA LEONE CÔTE D IVOIRE NIGERIA GHANA LIBERIA STATUS OF DELIVERY OF WAPP PROJECTS 19
20 Summary Implementation Schedule Interconnection in service Interconnection in service under WAPP Interconnection under implementation Interconnection under preparation Power Generation in service under WAPP Power Generation under implementation Power Generation under preparation Power Generation Identified MALI NIGER SENEGAL THE GAMBIA GUINEA BISSAU BURKINA FASO GUINEA BENIN SIERRA LEONE CÔTE D IVOIRE GHANA TOGO NIGERIA LIBERIA STATUS OF DELIVERY OF WAPP PROJECTS 20
21 Medium Voltage Cross Border Projects BURKINA FASO BENIN CÔTE D IVOIRE GHANA TOGO LIBERIA Ghana - Togo Ghana - Burkina Faso: Ghana - Southern Togo: Benin - Northern Togo: Cote d'ivoire - Liberia: Partially commissioned in early 2016, remaining works expected to be commissioned end 2016 STATUS OF DELIVERY OF WAPP PROJECTS 21
22 West African Power Pool MOVING FORWARD
23 WAPP Business Plan: OBJECTIVE 1: Update ECOWAS Revised Master Plan for the Generation and Transmission of Electrical Energy OBJECTIVE 2: Implement WAPP Priority Projects OBJECTIVE 5: Reinforce the Capacity of WAPP WAPP BUSINESS PLAN OBJECTIVE 3: Establish a Regional Electricity Market OBJECTIVE 4: Implement the WAPP Dark Fibre Project 23
24 Priority Focus Areas Update ECOWAS Revised Master Plan for the Generation and Transmission of Electrical Energy; Implement WAPP Information and Coordination Center and operationalize regional electricity market;
25 Update ECOWAS Revised Master Plan for the Generation and Transmission of Electrical Energy AIM: Elaborate an optimal development plan that is based on least cost planning and takes into consideration among others: Ongoing developments within ECOWAS Member States COP21 and the renewed drive of the sub-region to better integrate renewable energy resources in the energy mix through initiatives such as the West Africa Clean Energy Corridor Initiatives of bi-lateral/multi-lateral Partners addressing energy challenges in Africa Establish a catalogue of regional priority projects that will assure energy security and unconstrained power exchanges among ECOWAS Member States; Process in progress to mobilise funding to prepare study and secure approval of ECOWAS Heads of State and Government in early 2018.
26 Implement WAPP Information and Coordination Center Aim is to facilitate an accelerated launch of the regional electricity market and the management of key forthcoming ICC responsibilities that include: Daily management of the various markets (bilateral market, dayahead market,...). Monitoring and control of trade Coordination with operating control area centers to optimize the use of the interconnections Planning and carrying out day-to-day transactions relating to the operation of the interconnected Regional networks Management of financial transactions between market participants (transportation costs, financial settlement of contracts...) Contract executed in August 2016 for construction of ICC Building in Calavi, Benin - Works launch planned in January 2017 and expected completion after 24 months Contract execution for supply and installation of equipment expected in October Launch meeting planned in December 2016 and expected completion is after 33 months.
27 West African Power Pool CONCLUSION
28 Challenges to be Overcome Demand continues to outgrow production capacity implying load shedding is becoming more prominent; The energy crisis in the sub-region has led to ECOWAS Member states adopting non-optimal solutions that have deviated from the ECOWAS vision for an integrated, sustainable and vibrant electricity market in West Africa; Institutional frameworks of national electricity sub-sectors and the technical, financial and operational performances of utilities need to strengthened 28
29 Way Forward Continue to leverage the low cost energy resources for the benefit of the sub-region through least cost planning and periodic stock-taking of Master Plans; Accelerate realization power of generation projects and encourage, in close collaboration with ECREEE and ERERA, a rapid but structured integration of renewable energy development into regional and national strategies for addressing power supply deficits; Promote electricity sector reforms and restructuring to render the utilities more efficient, viable and attractive for alternate sources of financing. 29
30 WAPP: Lighting Up West Africa THANK YOU FOR YOUR ATTENTION WAPP Secretariat 06 BP 2907 Cotonou République du Bénin Tel : + (229) / Fax : + (229) / info@ecowapp.org Site: 30
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