FACTS AND FIGURES FOR TOP 5 WAF POWER MARKETS 2014

To solve these issues, the governments of

these countries have chosen to reform their
market to enable private investment in the
power sector.

In 2014, the top 5 power markets of West

Africa (WAF) were in order Nigeria, Ghana,
Ivory Coast, Cameroon and Senegal with
consumption
amounting
to
44.5
Terawatthours. Although, they have been
growing over the past few years and are at
different stages of their liberalization
process, these markets continue to face
the same challenges, namely:
structural shortfall of supply that
usually leads to load shedding;
difficulties in fossil fuels supply;
old and obsolete transmission and
distribution network resulting in:

frequent partial and total

collapse of the national grid;

significant system losses,

especially in distribution.

low end-user prices that jeopardize

the financial health of power
companies.

According to many experts, Ivory Coast is

an example of liberalization of the power
sector. She was one of the first WAF
country to launch the reform its power
market. This process started in 1985 with a
new law governing the power sector that
liberalized electricity generation. The
privatization of the national Company EECI
in 1990, the concession contract signed
with CIE the same year and the beginning
of production of CIPREL, the first Ivoirian
IPP, in 1994, are some milestones of this
process. This country now has 3 IPP, but is
still dominated by the CIE that has enjoyed
a
monopoly
in
transmission
and
distribution.
Nevertheless,
with
the
opening of transmission and distribution to
competition as per the new electricity code
of 2014, this situation will likely evolve in
the short term. The main challenge that
this market will face in future is securing
gas for its thermal generation.
The second country to kick-off the
liberalization of its electricity market was
Ghana, with the acts 538 and 541 of 1997.
Milestones of this process are: the
beginning of production of TICO, first
Ghanaian IPP, in 2000, and the creation of
a transmission company in 2008. In 2014,
there were many utilities active in the
power generation (5) and distribution (3),
transmission being a monopoly as per law.
Although on many aspects Ghana power
market can be considered as the most
mature WAF market, it continues to be

by Patrick Herv BABOGA, M. Eng

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dominated by state-owned companies,

namely VRA, BPA, GRIDCO, ECG and
NEDCO. The main challenge of the
Ghanaian power market for the
foreseeable future will be the setting of
appropriate end-user tariffs that will
reestablish financial health of the sector
without jeopardizing demand.
Senegal was the third of the top 5 WAF
markets to start the reorganization of its
power sector with a law published in 1998.
This process led to a privatization
agreement in 1999 that was cancelled 2000
and to date SENELEC is still a state-owned
company.
Despite
this
unsuccessful
privatization, IPP started production as
early as 1999, with commissioning of the
GTI Dakar Plant. Senegal had in 2014, two
independent
power
producers,
two
dedicated capacity in Malian hydro dams
and is leasing additional engines to meet its
domestics needs. SENELEC remains the
dominant player of this market and is
active in the generation, transmission and
distribution. The main challenge that this
market will face in future is the access
to cheap primary resource or electricity
(Banda Gas project and the FSRU project
are interesting alternatives).
The fourth market to take a step in the
liberalization process in the WAF Zone was
Cameroon with the electricity code of 1998
and the sell-out in 2001, of 56 % interest in
National Company SONEL, by the State.
Some milestones of this process are: the
beginning of production of DPDC, first
private
utility
in
2009
and
the
commissioning in 2013 of the biggest
generation capacity to come online for
more than 30 years (the 216 MW Kribi
plant).
Although
having
two
IPP,
Cameroonian electricity market continues
to be dominated by ENEO the successor of

SONEL that has enjoyed monopoly in

transmission and distribution and also
operates hydro and thermal plants. This
monopoly was ended with the new
electricity code of 2011 and the creation of
a transmission company in 2015. Given the
important generation capacity under
construction, the main challenge of this
market will be to develop and upgrade
the grid (merge the three existing
network).
The poor performance of its electricity
market has obliged Nigeria to start
liberalization of this sector with the
granting of express approvals to some
companies. This approach resulted in the
commissioning of AES Barge in 2001, the
first Nigerian IPP, and of the Agip Okpai
plant in 2005. In parallel, Nigeria kicked-off
the revision of its regulation, to stimulate
private financing. This led to the
enactment in 2005 of the Electric Power
Sector Reform. The main achievement of
this reform occurred in 2013 with the
creation of 5 power generation companies,
one transmission company and 11
distribution companies, all successors of
the Power Holding Company of Nigeria.
This reform has also enabled the arrival of
many additional IPP since 2005. Thus,
Nigeria had at the end of the year 2014,
more than 30 utilities and was the biggest
WAF market. In the coming years, this
market will face two main challenges:
reducing transmission and distribution
losses (46 % in 2014) and setting the
appropriate electricity tariffs.
The following factsheet highlights facts and
figures on these markets for 2014.

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Rank County

1 Nigeria

Main indicators

Population : 177,500,000
GDP (MUSD) : 568,500
Area : 923,768 km

2 Ghana

Population : 26,790,000
GDP (MUSD) : 38,620
Area : 238,535 km

3 Ivory Coast

Population : 14,670,000
GDP (MUSD) : 15,660
Area : 196,190 km

Population : 22,770,000
GDP (MUSD) : 32,050
Area : 475,440 km

5 Senegal

Population : 22,160,000
GDP (MUSD) : 34,250
Area : 322,463 km

4 Cameroon

Production

Transmission

Ditribution

Consumption

Comments

Installed Capacity : 11.732 GW

Available capacity : 7.485 GW
Net production : 29,244 GWh
Load Factor : 28.5 %
Fuel : Natural gas, hydro
Utilities : 22 producing utilities (PHCN
succesors, IPP, NIPP, IOC)

Peak load 4.144 GW

Network length : 15,022 km
Lines type : 330/132 kV
losses : 9.7 %
Number of networks : 1
Operator : TCN (State owned)
9 collapses of the grid

Lines length : 356,363 km

MV : 33/11 kV
LV: 415/220 V
18 % of netwok losses + 28 % of
collection losses
Operators : 11 distribution
companies

Consumption : 21,654 GWh

Number of subscribers : 8,645,000
Consumption per capita : 126 kWh
Average end-user price : 144.60 USD/MWh
Electricity access 45 %

PHCN historical power company was privatized in 2013

Second Multi-Year Tarrif Order (MYTO 2) is under implentation and
tariffs are more cost reflective
Regulatory agencies : NERC, ECN
Unavailability of gas, water shortages and grid constraints affects
power generation and transmission
Exports power to Togo, Benin and Niger
Gas cost : 3.3 USD/MMBTU

Installed Capacity : 2.830 GW

Net production : 12,963 GWh
Load factor 52.3 %
Fuel : Hydro, natural gas, light crude oil
(LCO), solar
Utilities : VRA, BPA (State owned) TICO, CEL,
SAPP, (IPP)

Peak load 2.061 GW

Network length : 4,450 km
Lines type : 330/225/161/65 kV
Losses : 4.3 %
Number of networks : 1
Operator : GRIDCO (State Owned)

Lines length : 91,382 km

MV : 34,5/33/30/20/11 kV
LV: 415/220 V
losses : 25.2 %
Operators : ECG, NEDCO (State
Owned) and EPC (Private owned)

Installed Capacity : 1.632 GW

Net production : 8,152 GWh
Load factor 57.0 %
Fuel : Natural gas, Hydro, fuel-oil, diesel
Utilities : CIE (15 % State owned), CIPREL,
AGGREKO, AZITO (IPP)

Peak load 1.148 GW

Network length : 4,697 km
Lines type : 225/90 kV
Losses : 6.4 %
Number of networks : 1
Operator : CIE

Lines length : 37,961 km

MV : 30/11 kV
LV: 380/220 V
losses : 17.6 %
Operator : CIE

Consumption : 5,563 GWh

Number of subscribers : 1,311,741
Consumption per capita : 251 kWh
Average end-user price : 138.7 USD/MWh
Electricity access 77 %
SAIDI : 40 hrs per customer

EECI historical power comany was privatized in 1990

Prices are regulated, not cost reflective and rarely modified
Regulatory agency : ANARE
Exports power to Togo, Benin, Burkina, Mali and Ghana
Gas cost : 5.3 USD/MMBTU
Fuel-oil cost : 972.2 USD/MT

Installed Capacity : 1.249 GW

Net production : 6,080 GWh
Load factor 55.6 %
Fuel : Hydro, Natural gas, fuel-oil, diesel,
Solar
Utilities : ENEO (44 % State owned), KPDC,
DPDC (IPP)

Peak load 0.790 GW

Network length : 2,232 km
Lines type : 225/110/90 kV
Losses : 5.6 %
Number of networks : 3
Operator : ENEO

Lines length : 34,358 km

MV : 30/15 kV
LV: 380/220 V
losses : 30.9 %
Operator : ENEO

Consumption : 4,360 GWh

Number of subscribers : 951,496
Consumption per capita : 191 kWh
Average end-user price : 129,40 USD/MWh
Electricity access : 50 %
SAIDI : 105.2 hrs per customer
SAIFI : 305 per customer

SONEL historical power company was privatized in 2001

Prices are regulated and rarely modified
Regulatory agency : ARSEL
Transmission company created in 2015
Fuel-oil cost : 476.2 USD/MT
Diesel cost : 1,213.2 USD/MT

Installed Capacity : 0.828 GW

Net production : 3,227 GWh
Load factor 44.0 %
Fuel : Fuel-oil, hydro, natural gas, diesel
Utilities : SENELEC (State owned), GTI,
KONOUNE (IPP), MANANTALI, FELOU (Dedicated
capacity), AGGREKO, APR Energy (Leased
capcity)

Peak load 0.466 GW1

Network length : 511 km1
Lines type : 225/90 kV
Losses : 2.4 %
Number of networks : 3
Operator : SENELEC

Consumption : 10,182 GWh

1

Number of subscribers : 2,658,602

Consumption per capita : 380 kWh
Average end-user price : 158.07 USD/MWh
Electricity access 80 %
1

SAIDI : 215/106 hrs per customer

1

SAIFI : 135 per customer

Lines length : 16,466 km

MV : 30/6.6 kV
LV: 380/220/127 V
losses : 18.4 %
Operator : SENELEC

Consumption : 2,565 GWh

Number of Subscribers : 1,050,228
Consumption per capita : 194 kWh
Average end-user price : 237.69 USD/MWh
Electricity access : 60 %
END = 21 GWh

IPP generation started in 2000 (commissioning of TICO)

Automatic Adjustment Formula (AAF) is under implementation and
tariffs are more cost reflective
Regulatory agencies : PURC, EC
Poor performance of the WAGP has obliged Ghana to rely on LCO
for thermal production
Exports power to Togo, Benin and Burkina
Gas cost : 8.7 USD/MMBTU
LCO cost : 110.2 USD/bbl

The privatization deal with the consortium of Hydro-Quebec and

Elyo was canceled by Senegal in 2000
Prices are regulated, not cost reflective and rarely modified
Regulatory agency : CRSE
Senegal has 60 and 15 MW of dedicated capacity in Manantali and
Felou hydro dams (Mali)
Fuel-oil cost : 710.0 USD/MT
Diesel cost : 1,083.1 USD/MT
Gas price : 8.9 USD/MMBTU

2012 data

Sources : Regulators, Utilities, Ministries of Enegy, International Energy Agency, World bank, African Development Bank

By Patrick Herv BABOGA, M. Eng.

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