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« Lighting up West Africa » Economic Community Communauté Economique Of West African States Des Etats de l’Afrique de l’Ouest General Secretariat / Secrétariat Général « Lighting Up West Africa » Presentation by Engr. Amadou Diallo WAPP Secretary General Vision, Mission and 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 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 Member Utilities in 2012 (24#) VRA CEB ECG NIGELEC LEC EDG CONTOUR GLOBAL Framework of Cooperation – ECOWAS Energy Protocol Adopted by the ECOWAS Heads of State and Government on January 31, 2003 through Decision A/DEC. 17/01/03 and binding on all ECOWAS Member States. Establishes a legal framework to promote long-term cooperation in the ECOWAS energy sector, based on complemntarities and mutual benefits, with a view to achieving increased investment in the energy sector and increased energy trade in West Africa. Organisational Structure GENERAL ASSEMBLY MDs of WAPP Member utilities – Supreme decisional organ Responsible for execution of WAPP policies and decisions EXECUTIVE BOARD 12 Members - eight (8) permanent members, three (3) rotating members, 1 observing member •EOC •SPEC ORGANISATIONAL •FC COMMITTEES •HRGC WAPP Donors’ GENERAL SECRETARIAT •DCC Coordination Committee Planning, Investment Information & Administration & Finance Programming & Environmental Department Coordination Centre Safeguards Department What does WAPP represent for its Membership? • Enhanced sub-regional collaboration and integration • Access to low cost energy resources • Overall reduction in infrastructure development costs due to economies of scale • Rapid project development – Large scale projects are more justified due to larger markets – Financing of regional projects by Development Partners is from separate concessional instruments that are different from national envelopes • Harmonised operation of interconnected networks contribute to increased reliability • Opportunities for trade West African Power Pool WAPP PROGRAMME & IMPLEMENTATION STRATEGY Total energy demand 50,000 GWh (85% accounted for by Nigeria, Cote d’Ivoire, Senegal and Ghana) Maximum Demand projected to reach 31,870 MW by 2025. Population estimated to reach 448 million. Average growth rate of electricity demand 5-7% Primary energy resources available for electricity generation: Hydropower Oil, Natural gas and coal Renewables 2012 - 2015 WAPP Business Plan Status of Power Supply in ECOWAS: Supply Sources Import + Others 5% Hydro Thermal GWh 31% 64% 40,000 30,000 20,000 Thermal Import + Others Hydro 10,000 - Mali Togo Benin Ghana Liberia Gambia Guinea Nigeria Senegal Burkina FasoCote d'Ivoire Sierra Leone Guinea Bissau 9 Status of Power Supply in ECOWAS: Demand-Supply Balance GWh Met Unmet 54% 46% 50,000 40,000 30,000 20,000 Met 38,370 Unmet 10,000 7,773 3,004 1,800 - 661 688 170 860 16 16 841 56 674 Mali Togo Benin Ghana Liberia Gambia Guinea Nigeria Senegal Burkina FasoCote d'Ivoire Sierra Leone Guinea Bissau 10 UPDATE OF THE REVISED ECOWAS MASTER PLAN . WAPP updated its Master Plan in 2011, which was adopted by ECOWAS Heads of State and Government on February 17, 2012 through Supplementary Act A/SA.12/02/12 . Objectives of the Study: – Elaborate an optimal development plan for a regional generation and transmission of electrical energy. – Propose a list of regional priority project that will assure energy security and the achieve the of interconnection of all the West African countries by 2018. – Elaborate a strategy for implementing the regional priority projects. UPDATE OF THE REVISED ECOWAS MASTER PLAN Outcome of Study For the period 2012 – 2025: No. Cost (US$ million) Hydropower Projects (7,092 MW) 24 13,803 Thermal Power Projects (2,375 MW) 5 4,263 Renewable Energy Projects (800 MW) 4 1,893 Transmission Line Projects (16,000 km) 26 6,457 Total Investment Cost is US$ 26.416 Billion 12 27/08/11 13 27/08/11 14 UPDATE OF THE ECOWAS REVISED MASTER PLAN : ENERGY MIX WITH 10% OF RENEWABLE ENERGY BY 2025 15 Implementation Strategy Inter Zonal Hub North Corridor OMVG-OMVS MALI SENEGAL NIGER GAMBIE GUINEE BURKINA FASO BISSAU GUINEE NIGERIA BENIN SIERRA GHANA TOGO LEONE CÔTE D’IVOIRE CLSG LIBERIA Coastal Backbone 16 Summary – Implementation Schedule Interconnection in service MALI NIGER SENEGAL THE GAMBIA BURKINA FASO GUINEA GUINEA BISSAU BENIN NIGERIA SIERRA TOGO CÔTE LEONE GHANA D’IVOIRE LIBERIA Summary – Implementation Schedule Interconnection in service MALI NIGER SENEGAL THE GAMBIA BURKINA FASO GUINEA GUINEA BISSAU BENIN NIGERIA SIERRA TOGO CÔTE LEONE GHANA D’IVOIRE LIBERIA 18 STATUS OF DELIVERY OF WAPP PROJECTS Summary – Implementation Schedule Interconnection in service MALI NIGER SENEGAL THE GAMBIA BURKINA FASO GUINEA GUINEA BISSAU BENIN NIGERIA SIERRA TOGO CÔTE LEONE GHANA D’IVOIRE LIBERIA 19 STATUS OF DELIVERY OF WAPP PROJECTS WAPP Medium Voltage Cross Border Projects BURKINA FASO BENIN GHANA CÔTE TOGO D’IVOIRE LIBERIA Ghana - Togo Ghana - Burkina Faso: Cote d'Ivoire - Liberia: In progress, commissioning expected mid 2013 Ghana - Southern Togo: In progress, commissioning expected in 2014 Benin - Northern Togo: In progress, commissioning expected in 2014 20 STATUS OF DELIVERY OF WAPP PROJECTS West African Power Pool CONCLUSION 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 a sustainable and vibrant electricity market in West Africa; • The energy crisis has also had negative impacts on the treasuries of utilities, which has in turn eroded the capacity of WAPP Members to actively participate in the development of the WAPP; • Institutional frameworks of national electricity sub-sectors and the technical, financial and operational performances of utilities need to be strengthened; • The global financial crises will constrain further funding sources and render difficult the securing of financing for WAPP projects. 22 Way Forward • Continue to leverage the low cost energy resources (hydropower, natural gas) for the benefit of the sub-region; • Expand sources of funding for transmission and generation projects by aggressively pursuing public private partnerships and accelerate their implementation; • Promote electricity sector reforms and restructuring to render them more efficient; • Adopt common approaches to network operation, trading and expansion; • Enhance communication and dialogue among players in the electricity sub-sector – possible cross-transfer of Best Practices; • Encourage, in close collaboration with ECREEE, a rapid but structured integration of renewable energy development into regional and national strategies for addressing power supply deficits; • Reinforce the capacities of ECOWAS Ministries in charge of energy and WAPP Member utilities. 23 WAPP: Lighting Up West Africa THANK YOU FOR YOUR ATTENTION WAPP Secretariat 06 BP 2907 Cotonou – République du Bénin Tel : + (229) 21 37 41 95 / 21 37 71 44 Fax : + (229) 21 37 41 96 / 21 37 71 43 Email: [email protected] Site: www.ecowapp.org 24.
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