ECOWAS: a regional electricity market or the cart before the horse



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# Ivory Coast : The ECOWAS countries have launched a regional electricity market. However, the electricity deficit is striking in all the countries of the region. Hence the importance of focusing primarily on electricity production by exploiting the enormous potential that exists.

Electricity is rare in West Africa. At the level of the ECOWAS-Economic Community of West African States-, only one country has an electrification rate exceeding 80%, Cape Verde. For all others, this is between 15 and 65%. And on average, the electrification rate in the region is around 40%.

The highest rate is in Cape Verde, with more than 80% of the population having access to electricity. Ghana (65%), Senegal (56%), Côte d'Ivoire (55%), etc. Other countries including Nigeria (35%) have low electrification rates. A situation which contributes to keeping the West African region in a vicious circle of poverty, instability and underdevelopment
Audelà, the electricity production is very unequally distributed at the level of the region.

To regulate this situation, ECOWAS launched, late last week, the regional electricity market of West Africa. The ceremony, chaired by Abdoulaye Bio Tchané, Benin's Minister of Planning and Development, was marked by the presence of 13 other ministers in charge of energy in the region.


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According to the Beninese Minister of Energy, "the establishment of the regional electricity market is necessary to solve the problem of the distribution of energy resources between the countries and to bridge the gap between electricity supply and demand. "

The objective of this market is to offset the supply and quantity deficit in the region. A situation that hampers economic development within ECOWAS

It is expected that this regional electricity market will enable the States of the region to benefit from a regular, reliable and competitive electricity supply.

However, while it is obviously useful to create a regional electricity market, it is especially important to invest in electricity generation at the regional level. Because the countries of the region have a huge electricity production deficit. The typical example of this deficit is illustrated by Nigeria. The continent's leading economic power, with 190 million inhabitants and over 70% of ECOWAS GDP, only has an installed capacity of around 10,000 MW. For comparison, South Africa, three times less populated, produces 45,000 MW. In addition, on the capacity of Nigeria, consisting mainly of gas-fired power plants, the failures make the actual production capacity oscillate between 4,000 and 7,000 MW.


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That is to say that the regional market will not solve much in terms of the improvement of the rate of electrification if efforts are not provided in terms of increased capacity

Yet, the region has exceptional potential for electricity generation. It has many oil producers including Nigeria (the largest African producer), Ghana, Côte d'Ivoire and Niger. Nigeria also has significant natural gas reserves for gas.

Ghana and Côte d'Ivoire have several gas fields that supply their local markets. In addition, the commissioning since 2011 of West Africa gas pipeline, long of 678 km and supposed to supply Benin, Togo and Ghana from Nigeria, should contribute to develop the continent's electricity production. . To this must be added the important discoveries of gas at the Mauritian-Senegalese border, estimated at 450 billion cubic meters.


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In addition, at the level of renewable energies, the potential is exceptional. As such, ECOWAS focuses on the production of electricity via green energies. In this context, the Center for renewable energies and energy efficiency of ECOWAS (ECREEE) wants to produce 10,000 MW by 2020 and increase the share of renewable energy in the energy mix of the region from 12 to 35% in 2020 and 45% by 2030.

The region has a significant hydropower potential that exceeds 25,000 MW of which almost a quarter is located in Guinea. Of this potential, barely 20% are currently exploited. Solar power is also an important source that can make a major contribution to reducing the continent's electricity deficit.

However, large-scale projects such as the Noor solar program in Morocco have not been developed at the regional level.
Still, nothing at the level of renewable energy, it will take 35 billion dollars of investment to produce the 10,000 MW.
Hence the need to pool investments and initiate joint projects structuring for the production of electricity, like the hydroelectric dams of the OMVS – Organization for the development of the Senegal River – grouping together 4 countries: Senegal, Mali, Mauritania and Guinea


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Finally, to dispose of of an efficient electricity market, in addition to generation, it is also necessary to develop electricity distribution networks. However, at present, there is little electrical interconnection between countries between ECOWAS countries. In addition to the investments required for the installation of power lines, it will also be necessary to invest in harmonizing the voltage of the transmission networks.

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