ECOWAS MASTER PLAN for the DEVELOPMENT of REGIONAL POWER GENERATION and TRANSMISSION INFRASTRUCTURE 2019-2033 Final Report Volume 0: Synthesis
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ECOWAS MASTER PLAN FOR THE DEVELOPMENT OF REGIONAL POWER GENERATION AND TRANSMISSION INFRASTRUCTURE 2019-2033 Final Report Volume 0: Synthesis December 2018 Financing 11th EDF Regional Indicative Programme Financing agreement EDF/2017/ 039-384 TRACTEBEL ENGINEERING S.A. Boulevard Simón Bolívar 34-36 1000 - Brussels - BELGIUM tel. +32 2 773 99 11 - fax +32 2 773 99 00 [email protected] tractebel-engie.com TECHNICAL DOCUMENT Our ref.: WAPP-MP/4NT/0626321/005/03 TS: Imputation: P.011966/0004 INTERNAL Client: Project: ECOWAS MASTER PLAN FOR THE DEVELOPMENT OF REGIONAL POWER GENERATION AND TRANSMISSION INFRASTRUCTURE 2019-2033 Subject: Synthesis Comments: 03 2019 01 17 FIN *L. Charlier *J. Dubois *J. Dubois *L. Bouzat 02 2018 12 12 FIN *L. Charlier *J. Dubois *J. Dubois 00 2018 10 01 FIN *L. Bouzat *J. Dubois *J. Dubois REV. YY/MM/DD STAT. WRITTEN VERIFIED APPROVED VALIDATED *This document is fully electronically sgned on 2019.01.17 TRACTEBEL ENGINEERING S.A. - Registered office: Boulevard Simón Bolívar 34-36, 1000 Brussels - BELGIUM VAT: BE 0412 639 681 - RPM/RPR Brussels: 0412 639 681 - Bank account IBAN: BE74375100843707 - BIC/SWIFT: BBRUBEBB ECOWAS MASTER PLAN FOR THE DEVELOPMENT OF REGIONAL POWER GENERATION AND TRANSMISSION INFRASTRUCTURE 2019-2033 Synthesis INTRODUCTION The collective vision of the Economic Community of West African States (ECOWAS) is to develop the West African Power Pool (WAPP) – a cooperative power pooling mechanism for integrating national power system operations into a unified regional electricity market – with the expectation that such mechanism would, over the medium to long term, assure their citizens a stable and reliable electricity supply at affordable costs. In 2012, the Authority of the ECOWAS Heads of State and Government approved, through Supplementary Act A/SA.12/02/12, a list of 59 Priority Projects for the subregion that emanated from the update of the ECOWAS Revised Master Plan for the Generation and Transmission of Electrical Energy prepared by Tractebel. However, in view of, among others, the evolution of the energy landscape in West Africa over the last five years, the renewed drive of the sub-region to better integrate variable renewable energy resources into the energy mix, Initiatives aimed at addressing energy challenges in the sub-region such as the West Africa Clean Energy Corridor (WACEC), the near-term commissioning of the WAPP Information and Coordination Center (ICC) as well as the operationalization of the regional electricity market within the ECOWAS region, an update of the 2012 Master Plan is required. In this context, the present study aims at formulating a new ECOWAS Master n o i s Plan for the Development of Regional Power Generation and Transmission r e v Infrastructure 2019-2033, that shall provide a rational basis for decision-making l a n i and investment in the power sector at the regional level. F It is important to highlight the excellent collaboration and assistance provided by the Energy Directorate of the ECOWAS Commission, the General Secretariat of the WAPP, UEMOA Commission, the WAPP Member Utilities, the Ministries in charge of energy in the concerned ECOWAS Member States, the sub-regional organizations involved in the electricity sub-sector as well as international organizations such as IRENA. The exchanges and the information gathering process have also been greatly facilitated by the active and effective participation of the WAPP Secretariat. WAPP-MP/4NT/0626321/005/03· Ed. 2019/01/17 3/24 CHALLENGES FOR THE WEST-AFRICAN POWER SYSTEM The West African energy sector is currently evolving at a significant rate, creating many challenges for the planning and operation of the system and representing many opportunities for an energy transition in West Africa. A high growth of electrical demand With an average annual forecasted growth rate of more than 8% for the next 15 years according to the load forecast prepared within the framework of this study, the ECOWAS region ranks high among regions with high growth around the world. In order to meet this demand, the sub-region can rely on the abundant resources available locally such as: · Invaluable solar potential, particularly in the part of the sub-region (Mali, Burkina Faso, Niger); · Untapped hydropower potential, mainly in Guinea, Côte d'Ivoire, Nigeria, Sierra Leone and Liberia (estimated potential of about 11 GW) · Proven gas resources in Nigeria, Côte d'Ivoire, Ghana and Senegal The implementation of the ECOWAS Master Plan for the Development of Regional Power Generation and Transmission Infrastructure 2019-2033 shall contribute significantly to the satisfaction of the entire demand of the sub-region by optimally developing the available resources within the ECOWAS Member States. An interconnected network in its infancy stage While the power system of most of the 14 mainland countries of ECOWAS1 were still isolated 15 years ago, the last decade has been marked by the commissioning of many interconnections and others are still under construction. The commissioning within the next 2 years of the CLSG line and the OMVG loop will lead to the interconnection of the 14 mainland countries of the subregion. The interconnected network of the WAPP offers a multitude of opportunities for n o the exchange of electricity. However, the operation of such a network creates new i s r e challenges for the network operators. The stable functioning of the entire v l a interconnected system remains a major issue for years to come. The list of priority n i projects to be developed in the next 3 to 4 years must therefore aim to address F this operational challenge. The need to develop a subregional electricity market In the context of an interconnected power system, the operationalization of the Electricity Market launched in June 2018 will become all the more important as countries shall be ready to exchange energy with available generation capacity (in particular renewable but also hydropower and thermal). 1 ECOWAS has fifteen (15#) Member States that are Benin, Burkina, Cape Verde, Côte d’Ivoire, The Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. WAPP-MP/4NT/0626321/005/03· Ed. 2019/01/17 4/24 In parallel, the operationalization of the WAPP Information and Coordination Centre (ICC) which shall play the role of market operator, shall ensure among others, transparency and market neutrality due to the sharing of data and information, the maintenance of an up-to-date model of the interconnected power system, the enforcement of common operating rules, the harmonization of protection schemes, and the calculation of Net Transfer Capacity among the involved countries. The presence of critical factors affecting the performance of power Utilities The exchanges and feedback gathered from the players in the electricity sub- sector allowed the identification of cross-cutting critical factors that are affecting the performance of WAPP member utilities. These factors were grouped into six main areas that were related to governance, planning, major project development, operational efficiency, financial health, business efficiency and skills development. The review of the actions plans implemented by some of the electricity utilities in the region as well as the analysis of the measures envisaged in other regions of the world facing similar problems have made it possible to propose a series of recommendations to deal with the critical factors identified. These action plans must be implemented within the power utilities and these include the strengthening, planning and extension of national transmission and distribution networks as well as the implementation of prepaid metering systems to improve performance on revenue collection. Other improvements are nevertheless to be implemented at the level of the sectorial organization, such as the need to strengthen the regulatory authority and its prerogatives on the electricity tariff. Lastly, the WAPP and the other specialized institutions/agencies of ECOWAS can also carry out some measures aimed at facilitating the implementation of transverse corrective actions and these could include the sharing of knowledge and lessons learnt, coordination between national development plans and regional ambitions, development of framework and reference documents, promotion of regional projects, skills transfer and capacity reinforcement of stakeholders. n o i s r e v l a n i F WAPP-MP/4NT/0626321/005/03· Ed. 2019/01/17 5/24 REGIONAL MASTER PLAN Given the current situation of the electricity sub-sector and the issues identified for its future development, the generation and transmission master plan has been developed to meet three main objectives: · The optimal integration of the variable renewable energie resources in West Africa, taking into account economic, environmental and technical constraints; · The development of infrastructure (transmission and generation) necessary to operationalize the electricity market in West Africa; · The need to guarantee security of supply in the short, medium and long- term, taking into account the Needs in terms of electrical energy and Constraints related to the generation (especially variable renewable) and the transmission (sometimes over long distances) of electricity. The resulting generation and transmission master plan was thus compiled. Given the different issues facing the sector in the short, medium and long term, the master plan has been divided into these three intermediate phases: Short-term issues (2019 – 2022) The electric demand for ECOWAS of 15.3 GW in 2018 should evolve towards 21.3 GW in 2022. Such growth requires the massive development of generation and transmission infrastructure. From a power generation point of view, the major short-term issue is the adherence to the Schedule for the implementation of the decided projects. In order to succeed in this transition, the development of solar projects in all the countries of the sub-region will have to be supported by a regulatory framework and appropriate financial measures. In addition, the role of battery storage to support the development of variable renewable energy is being studied by the WAPP in a dedicated study.