Achieving a sustainable power pool for West Africa
Energy analysts in Africa are applauding the decision of the African Development bank to provide $1.9 million in grant for the Nigeria-Benin interconnector reinforcement project at a time when the West African pool initiate has a crying need for revitalisation.
The West Africa Power Pool, a Specialized Institution of the Economic Community of West African States (ECOWAS) was created at the 22nd Summit of the Authority of ECOWAS Heads of State and Government with the aim of promoting power supply in the sub-region
Founded in 2000, WAPP is a cooperation agreement between nineteen national electricity companies in Western Africa under the auspices of the Economic Community of West African States (ECOWAS) and mandated by the governments of its fourteen member states. The members of WAPP pledged to work together to establish a reliable power grid for the region and a common market for electricity.
The World Bank is the lead infrastructure consortium member for WAPP. In 2011, it provided funding of over $100m for the first phase of the Inter-zonal transmission hub project of the WAPP (APL3) Programme. The World Bank has provided substantial funding to date, while supporting WAPP Secretariat’s efforts to coordinate other finance sources such as the European Investment Bank (EIB), African Development Bank (AfDB) and others.
According to a paper presented by Pancrace Niyimbona, energy expert and member of United Nation Economic Commission for Africa identified major constraints to power pools development and operation in WAPP to include lack of trust and confidence among pool members, underdeveloped transmission networks and tie lines and inadequate generating capacity and reserve margin.
Other problems include difficulties in mobilizing investment for power projects, lack of legal framework for electricity trading, lack of rules for access to the transmission grid, including setting wheeling charge, and lack of regional regulation and appropriate mechanism for dispute resolution.
Analysts are of the opinion that funding remains the greatest constraints to achieving the goals of West Africa power pool. Hence the news that the African Development Bank has signed a grant agreement last month, worth $1,992,721 to support the Nigeria-Benin Interconnector Reinforcement Project was a welcomed development.
In a release by the African Development Bank, it stated that the grant will help the construction of a 330 kV double circuit high voltage transmission line from Erukan (Nigeria) to Sakete (Benin) and help meet the needs of the ECOWAS region in suppling reliable electricity supply at affordable cost.
Stefan Nalletamby, AfDB Acting Vice-President, Operations, in charge of Infrastructure, Private Sector and Regional Integration, signed for the Bank Group, while Siengui A. Ki, Secretary General, signed for WAPP, in the sidelines of the AfDB Annual Meetings in Lusaka.
The Project, a WAPP key priority, will ensure stable integration of the national electricity networks in the ECOWAS Region and facilitate the accessibility to economic energy resources to all member states of the region.
Speaking at the signing event, AfDB Acting Vice-President Stefan Nalletamby said: “Energy is one of the most essential requirements for Africa’s development and a key pillar of the Bank’s High 5s vision. The project will allow inclusive economic growth needed to transform the lives and livelihoods of many in the West African region.”
The realisation of the 330 kV WAPP Nigeria–Benin Project will facilitate optimal power exchanges and trading between the Member States. It seeks to establish a robust transmission link from Côte d’Ivoire to Nigeria passing through Prestea, Aboadze, Volta in Ghana, Lomé in Togo, and Sakete in Benin.
“The project will definitely advance WAPP’s goal to establish more secure, reliable transmission corridors for power exchange and help catalyse the development of energy resources, and the transfer of low-cost energy supply,” WAPP Secretary General said.
“The increased volumes of power derived from the project, will boost the region’s economies and contribute to poverty reduction efforts,” he added.
The project, which would be executed in Nigeria and Benin is expected to lead to the construction of approximately 200 km of 330 kV high voltage transmission line; extension of/or the construction of a new 330 kV high voltage substation in Erunkan (Nigeria) extension of/or the construction of a new 330 kV high voltage substation in Sakete (Benin) or environ; Installation of SCADA and Fibre Optic systems; the Feasibility Study for the Nigeria-Benin Interconnector Reinforcement Project was carried out by NEPAD Infrastructure Project Preparation Facility, NEPAD-IPPF.
WAPP aims to integrate the national power systems of its members into a unified regional electricity market which, over time, will provide the citizens of the region with a stable and reliable electricity supply at affordable costs.
However industry watchers are of the view those regulatory frameworks should be aligned towards achieving the common goal of increase investments needed for power grid expansion in the region, with emphasis on the implementation of cross-border projects that will enhance supply, reliability and reduce costs to end users.
This will help to create an attractive environment for investments in order to facilitate the funding of power generation and transmission facilities, including creating a common operating standard, rules and a transparent and reliable mechanism for the swift settlement of power trade transactions.
Developing appropriate policies and financing mechanisms for cross-border projects remain a key challenge, particularly for encouraging private sector investors. WAPP is working with World Bank and other financiers to develop workable models for cross-border project finance and regulation on priority projects, along with ways to increase capacity of institutions responsible to support delivery.
ISAAC ANYAOGU