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ABSTRACT

CONTENTS

CHAPTER 1- INTRODUCTION
1.1 OVERVIEW OF COTE D’IVOIRE
1.1.1- General
1.1.2- Climate
1.1.3- hydrology
1.2 ENERGY SCENARIO OF COTE D’IVOIRE
1-2-1. Energy resources

1-2-2. Energy Policy

1-2-3. Electricity Tariff


1.3 OBJECTIVES OF THE STUDY

1-4 PROPOSED OULINE

CHAPTER 2: HYDROPOWER IN COTE D’IVOIRE

2-1- OVERVIEW OF HYDROPOWER IN COTE D’IVOIRE

2-2 HYDROPOWER SITUATION

2-2-1-Potential

2-2-2. National institution in charge of energy sector

2-2-3. Current process for the implementation of private projects

2-2-4. Existing Capacity

2-2-5. Future plans

2-2-6. Private sector involvement

2-2-7. International trading


3-3 GENERAL LEGISLATIVE FRAMEWORK OF HYDROPOWER
SECTOR (Electricity, Environment, Water use, Environmental flows)

3-1. ENVIRONMENTAL IMPACT.

3-4. MITIGATION MEASURES

3-5. STATUS OF RURAL ELECTRIFICATION IN CÔTE D’IVOIRE


3-6. BARRIERS AND CHALLENGES

3-7. INTEGRATION OF DIFFERENT ELECTRICITY SOURCES

CHAPTER 3: CONCLUSIONS AND RECOMMADATIONS


3-1. CONCLUSIONS

3-2. RECOMMANDATIONS

REFERENCES
LIST OF ABREVIATIONS

CFA (XOF) : : Financial Community of Africa (Communauté financière


d'Afrique)

ITCZ : Inter Tropical Convergence Zone

Bcm: billion cubic metres

CIE: Compagnie ivoirien de l’electricité (ivorian company of electricity)

GDP : Gross domestic product

SODEXAM : Société d’Exploitation et de Développement Aéroportuaire,


Aéronautique et Météorologique for civil aviation purposes

VAT: Value-added tax

EUR: European Monetary Unit

HPP : Potential for Hydropower Plants

ECOWAS: Economic Community of West African States.

IPP: Independent Private Producer.

EECI: Electrical Energy of Côte d’Ivoire (Energie Electrique de Côte d’Ivoire).

CI-ENERGIES : Côte d’Ivoire Energies.

CIPREL : Côte d’Ivoire Electricity Production Company (compagnie ivoirienne


pour de production de l’électricité).

SOGEPE : Management Company of the Electricity (Société de Gestion du


Patrimoine de l’electricité).

SOPIE : Ivorian Electricity Operation Company (Société des Operation


Ivoirienne d’Electricité).

ANARE : National Authority for Electricity Regulation (Autorité Nationale de


Regulation de l’Electricité).

WAPP : West Africa Power Pool.

PRONER: National Rural Electrification Program ( PROgramme National de


l’Electrification Rurale.

GOCI: Government of Côte d’Ivoire.


ANECI: National agency of water (agence nationale des eaux).

FAO: Food and Agriculture Organization.

SAUR: Urban and Rural Development Company (Société d’Amenagement


Urbain et Rural).

FDE: Stock for Water Development (Fond pour le Developpement de l’Eau)

SODECI: Water Distribution Company in Côte d’Ivoire ( Société de Distribution


de l’eau en Côte d’Ivoire)

AFDB: Africa Development Bank


LIST OF FIGURES AND TABLES

Figure N° Title page N°

1-1 Location map of Côte d’Ivoire.

1-2 General information of Cote d’Ivoire

1-3 Climate zone

1-4a Transitional tropical

1-4b Transitional equatorial

1-5 Basins

1-6a Historic variation in annual discharge

1-6b Seasonality in Discharge

1-7 Market share and generation mix (2017)

1-8a Energy production

1-8b Energy consumption

1-9 Total energy statistics (ktoe)

2-1a: Theoretical hydropower potential of Côte d’Ivoire

2-1b: Theoretical hydropower potential of Côte d’Ivoire

2-2 : National institution in charge of energy sector

2-3: Existing capacity

2-4a: Breakdown of power generation supply

2-4b: Power generation supply


CHAPTER 1- INTRODUCTION

1.1. OVER VIEW OF CÔTE D’IVOIRE

The Republic of Côte d'Ivoire, which became independent in 1960, is located


on the south coast of West Africa. It is divided into 14 districts (including two
autonomous Districts) and 31 regions, with Yamoussoukro as the capital. The
official language of Côte d'Ivoire is French, and the currency is the Communauté
financière d'Afrique (Financial Community of Africa or CFA) franc (XOF)
Côte d’Ivoire has about 22 Mio inhabitants. The neighboring countries are
Liberia and Guinea in the east, Mali and Burkina Faso in the north, as well as
Ghana in the east (see map below).

Figure 1-1: Location map of Côte d’Ivoire.


Figure 1-2: General information of cote d’ivoire

1-1-1. GENERAL

Côte d'Ivoire is the world's largest producer and exporter of cocoa beans
and a significant producer and exporter of coffee, palm oil, and cashew nuts.
Consequently, the economy is highly sensitive to fluctuations in international
prices for these commodities, and, to a lesser extent, to climatic conditions.
Despite government attempts to diversify the economy, it is still dependent on
agriculture and related activities that employ about 68% of the population.
Since 2006, oil and gas production have become more important engines of
economic activity than cocoa. Offshore oil and gas production have resulted in
substantial crude oil exports and provide sufficient natural gas to fuel electricity
exports to Ghana, Togo, Benin, Mali, and Burkina Faso. Oil exploration by a
number of consortiums of private companies continues offshore.
Oil production have been failing and the Government has launched an
ambitious exploration program to end the slump and rapidly increase
production to a target of 200,000 baril per day. Several new blocs have been
auctioned at the end of 2017 and in 2018.
On the Power and Utility sector, in a bid to catch up on demand
and optimise regional opportunities, Côte d'Ivoire has allocated in 2017, some
USD 4 billion for investment in the Energy sector.
The government is encouraging private sector to help ramp up electricity
production in line with its ambition to increase capacity to 4,000 MW by 2020,
up from around 1,600 MW in 2013.
Gross domestic product (GDP) growth over the last few years has also
been driven by a significant increase in infrastructure investments (roads,
bridges, public buildings, etc.) all over the country.
1-1-2. CLIMATE
The climate in West Africa can be grouped into six zones with distinctive
seasonal rainfall patterns (L’Hôte et al., 1996). In Côte d’Ivoire the climate ranges
from “Transitional equatorial” in the south to “Transitional tropical” in the north.
The southern regions have two rainfall peaks in June and September, whereas in
the north rainfall peaks in August. These differences are caused by the seasonal
shifting of the Inter Tropical Convergence Zone (ITCZ) from south to north and
back to the south. The diagrams below summarize the mean monthly rainfall and
air temperature in these climate zones.( Côte d’Ivoire country report)

Figure 1-3: Climate zone


Figure 1-4a. Transitional tropical

Figure 1-4b: Transitional equatorial

2-1-3. HYDROLOGY

The Sassandra, Bandama and Comoe rivers are the three largest rivers in
Côte d’Ivoire. About 31 % of the country is located in the Bandama basin, 21 %
in the Sassandra basin and 19 % in the Comoe basin. All of the three rivers
discharge to the south into the Atlantic ocean. Rivers in the north-western parts of
the country discharge to the north and are tributaries to the Niger River (Figure 1-
6 ).
The figures 1-7 and figure 1-8 on the following page illustrate the annual
and seasonal variations in discharge for the Bandama, Sassandra and Comoe
rivers.
All three rivers show strong variations in annual discharge over the last 60
years. Some extremely dry years occurred in the 1980s and early 1990s, whereas
the period 1998-2014 represents moderately wet conditions in the historic
context.
There is strong seasonality in discharge, with high flows in September and
October. However, the lower stretches of the Bandama and Sassandra rivers are
affected by reservoir operation with increased low flow during the dry season..
( Côte d’Ivoire country report)

Figure 1-5: Basins

Figure 1-5 : Basins


Figure 1-6a : Historic variation in annual discharge

Figure
1.2 1-6b : Seasonality
ENERGY in Discharge
SCENARIO OF COTE D’IVOIRE
Current, Côte d’Ivoire has an installed generation of 2199 MW. The country is the
third largest in electricity system in west Africa after Nigeria and Ghana. The
power capacity is dominate by natural gas-fired generation (1320 MW) and
hydropower 879 MW . The natural gas-fired is produced by PPIs represent 60
percent of total Ivorian production (with a 68 percent capacity factor),while hydro
production is 40 percent (with a 27 percent capacity factor)

Figure 1-7: Market share and generation mix (2017)

1-2-1. Energy resources

1-2-1-1. Biomass

As with most African countries, biomass is the most common energy source
and it provides about 75 per cent of energy requirements, especially for domestic
purposes and for small businesses. Fuel wood is mainly obtained from natural
forests, savannah woodlands, bushland and tree plantations, among others.
Forested land covers 32.7 per cent of the country (World Bank, 2015d), an area of
about 6.38 million hectares. Agroindustrial residues, crops and plantations
represent a readily available form of renewable energy and are already being used
in some agro-businesses and sawmills (REEEP, 2012). Biogas from household
waste is being experimented with in Abidjan. The production of bioethanol using
feedstock from maize, sugarcane and sweet sorghum is also being explored. It is
estimated that in the northern part of Côte d’Ivoire, about 120 ktoe per year is
available from bagasse (the fibrous by products of extracting
sugarcane or sorghum juice) (REEEP, 2012).
1-2-1-1.Hydropower

Hydro and thermal generating plants provide all of Côte d’Ivoire’s


electricity, with hydro accounting for less than 50 per cent of the power
generated. By the end of 2011, there was 606 MW of installed hydropower
capacity. Buyo, Kossou and Taabo are the main dams in Côte d’Ivoire with 165
WM,174 MW and 210 MW of generating capacity, respectively. One is recently
accomplished in 2017, named Soubré hydropower plant has a capacity of 275
MW. There are four other large sites that are still undeveloped. Their capacities
range from 4 MW to 288 MW and there are various other small potential hydro
sites that could also be developed (REEEP, 2012). In general, Côte d’Ivoire has a
theoretical capacity of 46 TWh/annum with a technically exploitable potential of
about 12.4 TWh (REEEP, 2012).

1-2-1-2.Oil and natural gas

Production of offshore oil started in 1980 and by the end of 2011, oil
production was estimated at 11,720 thousand barrels (WEC, 2013). Most (86
per cent) of the oil and gas wells are located in shallow marine areas, 7 per cent
are in deep offshore wells and 7 per cent are onshore. The proven petroleum
reserves in 2005 were 100 million barrels. Natural gas was initially discovered in
Côte d’Ivoire in the 1980s, but development only started in 2005. The proven
recoverable reserves at the end of 2011 was 28.3 bcm and production was 1.6
bcm (WEC, 2013).

1-2-1-2.Peat

The area of peatland is 725 km2 (WEC, 2013).

1-2-1-3. Wind

The only available data on wind is compiled by the Société d’Exploitation et


de Développement Aéroportuaire, Aéronautique et Météorologique (SODEXAM)
for civil aviation purposes. Along the coast, San Pedro in the west and Korhogo
in the north have wind velocities above 6 m/s, while Bouake in the central region
and Tabou on the western coast have wind speeds higher than 4 m/s.

1-2-1-4. Geothermal

The geological conditions point to some limited potential for geothermal


energy, but no study has yet been undertaken (REEEP, 2012).
1-2-1-5. Solar

There is moderate potential for solar energy, ranging between 2.0 and 4.5
kWh/m2 /day with a daily sunshine duration of 6 hours (REEEP, 2012). Many
educational and health facilities in urban areas use solar for water heating. It is
estimated that about 2 kW is needed to heat 150 litres of water. In rural areas,
solar could help reduce or replace the amount of firewood used for water heating
(REEEP, 2012).

Figure 1-8a: Energy production

Figure 1-8b: Energy consumption


Figure 1-9: Total energy statistics (ktoe)

1-2-2. Energy policy of Côte d’Ivoire

Greater involvement from private energy companies, especially on the


production side, has led to increases in electricity production capacity, which
reached 2020 MW in 2017. While gas-fuelled thermal power plants accounted for
80% of production that year, plans to boost hydropower capacity, and upcoming
biomass and solar power projects, will be critical to diversifying the energy mix
and meeting future demand. Although increasing electricity production capacity is
a key part of the government’s energy policy, it also emphasises a continued rise
in hydrocarbons output, with the authorities announcing in July 2016 that the goal
is to double crude oil and natural gas production by 2020.(Ministry of energy)

In an effort to bring more competition into the electricity sector and


encourage private investment, the sector regulations have been moving towards
liberalisation. Private producers have been able to operate in electricity
generation since 1985, when the authorities published an electricity bill.
However, production, transmission and distribution remained under a state of
monopoly, with these activities managed by CIE since 1990. .(Ministry of energy)

In 2014 the government adopted a new Electricity Code. Although parts of its
implementation still depend on a series of upcoming governmental decrees, the
code was set to terminate CIE’s monopoly on transmission, distribution and
marketing of electricity. It also created new regulatory provisions for renewable
energy producers, and established regulations to penalise electricity theft. .
(Ministry of energy)

In late 2016 the government made claims that it had broken up the long-standing
monopoly of CIE, thus opening the door to new companies involved in the
distribution of electricity. Six decrees in total were implemented covering the
dissolution of the sector regulator, improved conditions for IPPs to sell energy to
the national grid, as well as the establishment of new prices and regulations for
the distribution and marketing of energy. .(Ministry of energy)

However, the power grid has remained under the management of CIE, which is
majority-owned by utilities firm Eranove Group. CIE signed its first concession
agreement with Côte d’Ivoire in 1990, which was extended in 2005 for 15
additional years. In this context, information on whether the decrees taken will
have much effect on the current state of the industry, before 2020, remains
unclear. .(Ministry of energy)

CIE also oversees for some of the government-owned dams, and handles all
production, transmission, distribution and marketing of electricity, as well as
exports into neighbouring countries. IPPs sell the energy produced to the national
grid through power purchase agreements with the CIE. However, 2020 will open
the door for authorities to either renegotiate a new contract with CIE or a number
of different providers, which will now be able to participate in all segments of the
market. .(Ministry of energy)

1-2-3. Electricity Tariff

Current electricity tariffs in Côte d’Ivoire are not linked to inflation or the
real costs of energy. However, in June 2016 the government adopted a schedule
for tariff adjustments over the next few years: a 10 per cent capped tariff
increase in 2016 and a subsequent five per cent increase in 2017 and 2018,
followed by a three per cent increase in 2019 and 2020. Due to complaints
about the price-hike that amounted to almost 40% in some cases,
The tariff for most domestic customers ranges from approximately EUR
0.055/kWh to 0.096/kWh depending on customer class and usage, with a bi-
monthly fixed charge of EUR 0.85-1.80. This is before VAT and levies (e.g. for
rural electrification) on the tariff. The small commercial base tariff ranges from
EUR 0.102/kWh to 0120/kWh, with a bi-monthly fixed charge of EUR 2.15.
Medium voltage customer tariffs vary by customer class, demand and time-of-
use. Unit rates range from EUR 0.039/kWh to 0.165/kWh and annual demand
charges from EUR 27/kW to EUR 121/kW. High voltage customer tariffs
likewise range widely for the same reasons from EUR 0.054/kWh to EUR
0.175/kWh and annual demand charges from EUR 53/kW to 113/kW. These
figures are exclusive of VAT and levies.

1-3.OBJECTIVES OF THE STUDY

With its terrain which is generally large plateau rising gradually from the sea
level in the South to almost 500 m elevation in the North and its many rivers,
Côte d’Ivoire has the potential to be one of the leading hydropower nation of
Africa, However, the current situation is that in rural area, only 30% have access
to electricity and unsustainable use of firewood dominates the energy sector.

Côte d’Ivoire growing economy is putting the power supply network under
pressure and government is targeting and increase in overall generating capacity
from 2000 MW to 4000 MW by 2020 .This growth is expected to be reached by
using a mix of gas-fired generation and hydroelectric power, and the
expansion will be mostly driven by the private sector.

To achieve the different goals mentioned above hydropower development


becomes increasingly important.

This dissertation aims to show the potential of hydropower, its development


status and find the solution to improve energy supply

1-4. PROPOSED OUTLINE OF THIS STUDY

In this dissertation we will show the following points:

 Scenario of energy in Côte d’Ivoire

 Status of hydropower in Côte d’Ivoire

 Importance of hydropower in Côte d’Ivoire economy

 Status of electrification in Côte d’Ivoire


CHAPTER 2: HYDROPOWER IN COTE D’IVOIRE

OVER VIEW OF HYDROPOWER

As the human population grows the demand for energy increases. At the same
time, the standard of living improves, as new household applications, vehicles
and devices are being introduced to the public. This development results in
increased capability to afford modern day energy services (EIA, 2013). Humans
have been emitting large amounts of greenhouse gases for decades through the
use of fossil fuels, and are only now starting to see the consequences. The emitted
greenhouse gasses have led to a rise in global temperatures. Average temperature
change has been projected to cause dangerous climatic changes if raised more
than 2 degrees Celsius, compared to pre-industrial levels, by the year 2100
(Nordhaus, 1977). In order to decrease the negative anthropogenic impacts on the
planet and secure a sustainable future for the human race, clean and renewable
ways of energy extraction and production must be applied. Renewable energy
sources can be found in abundance everywhere on the planet in varying forms.
One of these highly available resources is hydropower.
Hydropower is a mature technology, offering clean, sustainable energy that is
excellent at handling changes in load demand. Currently the world generates
approximately 3 500 TWh of hydroelectricity, which amounts to 16.3 % of the
world’s total electricity needs.
In Côte d’Ivoire, the first hydropower plant was commissioned one year
before the independence of the country in 1959. It is Ayamé 1 hydropower plant.

2-3 HYDROPOWER SITUATION

2-3-1. Potential

The theoretical hydropower potential for Côte d’Ivoire is estimated to be


2878 MW (reference period 1998-2014), which is the total of all rivers in the
country.
The following table and figures show how the total potential of the country is
subdivided into theoretical potential for hydropower plants (HPP) of different
plant size. A classification scheme based on mean annual discharge (m³/s) and
specific hydropower potential (MW/km) was applied to determine the preferred
plant size for river reaches with a typical length of 1-10 km. Four classes were
considered for the preferred plant size, including pico/micro/mini HPP (< 1 MW
installed capacity), small HPP (1-30 MW installed capacity), medium/large HPP
(> 30 MW installed capacity), and “No attractive potential” for river reaches with
too low specific hydropower potential. For the latter in some cases it may still be
worthwhile to utilize this potential in e.g. multi-purpose schemes. The technical
potential was not assessed in this study.
Figure 2-1a: Theoretical hydropower potential of Côte d’Ivoire (ECOWAS
Country Profiles )

Figure 2-1b: Theoretical hydropower potential of Côte d’Ivoire (ECOWAS


Country Profiles )
2-3-2. National institution in charge of energy sector

Under the Electricity Law of 1985, the production of power was open to the
private sector, but the transmission, distribution, import and export activities of
electricity remained a State monopoly. However, in accordance with articles 5
and 6 of the Electricity Law of 1985, the State of Côte d’Ivoire granted to a
private operator, the “Companie Ivoirienne l’Electricité” (CIE) a concession over
the production, transmission, distribution, import and export of electricity. The
CIE replaced the former national company “Energie Electrique de Côte d’Ivoire”
(EECI) who retained its role in the management of assets and projects, the
development of technical studies as well as the technical control of the concession
holder. At that time, Côte d’Ivoire was already seen as one of the pioneers in Sub-
Saharan Africa in terms of private participation in its power sector.

In the 1990’s, to increase its power production capacity, Côte d’Ivoire


concluded several concession agreements with IPPs such as the concession
agreement with CI-ENERGIES for the development of the AZITO natural gas
fired thermal power plant or the concession agreement with CIPREL for the
development of a natural gas fired thermal power plant at Vridi near Abidjan. The
CIE was the purchaser of the power produced by the IPPs in Côte d’Ivoire. The
power plants in Côte d’Ivoire are mainly supplied by local offshore natural gas.
In December 1998, the State undertook a reform of its institutional framework
and winded up its national company Energie Electrique de Côte d’Ivoire (CIE)
and created two new national companies, the Société de Gestion du Patrimoine du
secteur de l’Electricité (“SOGEPE”) which was set up to manage the assets of the
State and the financial flows of the sector on behalf of the State and the Société
d’Opération Ivoirienne l’Electricité (“SOPIE”) which was created to ensure long
term planning of the sector for future electricity capacity. It also created the
Autorité Nationale de Régulation du Secteur de l’Electricité (ANARE) which is
the National authority for the regulation of the electricity sector in charge of
overseeing the compliance by the operators with the legislation, arbitrating
disputes between operators or between operators and the State as well as ensuring
the protection of the interests of the consumers of electricity. In 2010, Côte
d’Ivoire undertook another reform which led to the winding-up of the two
national companies, SOGEPE and SOPIE, and the creation of a new national
electricity company “Société des Energies de Côte d’Ivoire” - “CI-ENERGIES”
having as main activities the management of the electricity supply as well as the
management of projects on behalf of the state
as grantor of the concession agreements.
Figure 2-2: National institution in charge of energy sector
2-3-3.Current process for the implementation of private projects

- Feasibility studies (Promoter)

- Site acquisition (Developer)

- Environmental and social impact studies

- Signing of a Memorandum of Understanding

- Negotiation of the Power Purchase and Sale Agreement

- Rate negotiated between the Promoter and the State

- Existence of adaptable convention models in

function of the Project Proponent


2-3-4. Existing Capacity

Today, electricity in Cote d’Ivoire comes from a mix of thermal (mostly natural
gas) and hydropower generation sources. As shown in Table 3: Installed capacity
(2017), total installed electrical generation capacity was 2,195 MW38 at the end
of 2017,including 879 MW in hydro capacity (seven hydroelectric stations).

Fig 2-2 : National institution in charge of energy sector ( CI- EENERGIES )

Figure 2-3 : Installed capacity


Côte d’Ivoire has substantial untapped hydroelectric potential, but still relies on
limited natural gas to fuel its generation capacity. Natural gas-fired plants
represent 55 percent of total installed capacity, all run by independent power
producers. Hydropower stations represent 40 percent of the total and are all
managed by the private utility Companie Ivorienne d’Électricité (CIE). The oil
plant Vridi Tag 5000, controlled and managed by CIE, represents the remaining 5
percent of capacity. Almost all thermal power generation is owned and operated
by the private sector, representing 60 percent (55 percent gas, 5 percent oil) of
Ivorian electricity generation in terms of MW installed, and 82 percent of energy
generation in terms of GWh (see Figure 6). The hydropower plants are all state-
owned. Since 2011, power generation has increased by 10 percent per year,
reaching 9,939 GWh at the end of 2016 ( Figure 7)

FIGURE 2-4: Breakdown of power generation supply (% total GWh produced)


FIGURE 2-5: Power generation supply (GWh)

2-3-5. Future plans

In the Strategic Action Plan for the Development of the Electricity Sector
(Plan Stratégique de Développement 2011-2030 de la République de Côte
d’Ivoire Ministère des Mines, du Pétrole et de l’Energie), the Ivorian
government identified 66 projects that will require significant investment from
the private sector, including through PPPs with IPPs. The government intends
to develop a balanced energy portfolio by encouraging the production of new
and renewable energy sources. Out of the additional 1,500 MW capacity that
the country plans to commission by 2020, hydroelectric and thermal power
plants developed by private operators account for around 85%. Renewable
energy is planned to constitute 5% of the supply mix by 2015, 15% by 2020
and 20% by 2030.

2-3-6. Private sector involvement

Most hydropower project memoranda of understanding for the next 10 to 15 years


have been allocated to private developers.It is important to consider potential
delays to projects and the effect this could have on private developers. Private
companies may hesitate to invest heavily in much-needed viability studies,which
may not guarantee that the project will move forward once the studies are
completed. More broadly, a lack of existing demand and performance data from
the power sector makes it difficult for private developers to know if these are
solid development opportunities. In addition, lack of competition makes it
difficult to achieve the best price for each project.
While IPPs have historically been the favored structure, future projects will likely
involve private sector participation at the engineering, procurement, and
construction stages, and be transferred to CI-Energies on completion.
2-3-7. International trading

The Ivorian transmission grid is based on two high voltage levels: 90 kV


(2,645 km) and 225 kV (2,088 km). The distribution grid consists of 30 kV and
15 kV (22,336 km) as well as 220 V and 380 V (19,599 km) lines. The
Compagnie Ivoirienne d’Électricité (CIE) operates the power grid, as well as a
number of large hydropower plants, under a concession with the state. The
transmission and distribution systems in Côte d’Ivoire are out-dated and
overloaded with total energy losses at 22%. This shows the need for grid
rehabilitation and system upgrading to reduce losses.
Also, with interconnection transmission lines to Ghana, Burkina Faso, Mali,
Liberia, Sierra Leone, Guinea under construction, Côte d’Ivoire plans to be a
major electricity trading hub in the West African Power Pool (WAPP).

3-4. GENERAL LEGISLATIVE FRAMEWORK OF HYDROPOWER


SECTOR:

(Electricity, Environment, Water use, Environmental Impact, Environmental


flows)

a) Electricity

 L’Autorité Nationale de Régulation du Secteur de l’Électricité


de Côte d’Ivoire (ANARE)

The Autorité Nationale de Régulation du Secteur de l’Electricité de Côte


d’Ivoire (ANARÉ – National Electricity Sector Regulatory Authority) is
responsible for the regulation of the electricity sector. The agency was
established in 1998. It is in charge of overseeing the compliance with the laws,
regulations and obligations under authorizations and conventions in force in the
electricity sector. It proposes the electricity tariffs to the state as well as the
tariffs to access the national grid. ANARE ensures protection of consumers and
their rights and arbitrates disputes between operators or between operators and
the state. Finally, it advises and assists the state in regulating the electricity
sector. The Electricity Code of 2014 gives greater independence and authority
to the body by specifically providing that it is an independent legal entity with
financial autonomy.
 Compagnie Ivoirienne d’Électricité (CIE)

The Compagnie Ivoirienne d’Électricité (CIE – Ivorian Electricity Company) is


a vertically integrated monopoly, handling most generation, management and
distribution of electricity in the country. Created in August 1990 by the French
group Bouygues and the electricity company EDF, CIE is a mainly private
Ivoirian company that holds a public service concession for the production,
transportation, export, import, distribution and marketing of electricity. The
IPPs in the generation sector sign Power Purchasing Agreements with CIE in its
role as the sole transmission and distribution operator.

 Société des Energies de Côte d’Ivoire (CI-ENERGIES)

In December 1998, the state undertook a reform of its institutional


framework, limited the mandate of the CIE and created two new national
companies: The Société de Gestion du Patrimoine du Secteur de l’Electricité
(SOGEPE) was set up to manage the assets of the state and the financial flows
of the sector on its behalf. The Société d’Opération Ivoirienne l’Électricité
(SOPIE) was created to ensure long term planning of the sector. In 2010, Côte
d’Ivoire undertook another reform, which led to the merger of SOGEPE and
SOPIE under the new national electricity company Société des Énergies de
Côte d’Ivoire (CI-ENERGIES). CI-ENERGIES continues to carry out the tasks
of both companies and thus manages on behalf of the state the electricity supply
as well as new projects as grantor of concession agreements.

Other government initiatives include; The National Program for Rural


Electrification (PRONER) that was launched by the government of Côte
d’Ivoire in 2014 which aims to increase the penetration rate of electricity to
80% by 2020 and the coverage rate to about 100%. It also plans to maintain an
electrification rate of 500 new localities (each with over 500 inhabitants)
annually until 2020. The Electricity For All Program was adopted in 2014
with the aim to establish 200,000 new grid connections to the grid per annum.

 Electricity Law 1985

The Electricity Law of 1985 opened up electricity production to private


operators, but the transmission, distribution, import and export activities of
electricity remained a state monopoly. The state granted a private operator,
the Companie Ivoirienne l’Électricité, a concession over the production,
transmission, distribution, import and export of electricity. The CIE replaced
the former national company.

 Electricity Code 2014


In 2014 the sector was reformed with a new Electricity Code, a
comprehensive framework for the production, transport, dispatch, distribution,
commercialization, import and export of electricity. The Code reinforces the
powers and competencies of the regulatory authority for the electricity sector,
takes into account new and renewable energy sources and includes provisions
to combat fraud and illegal activities that cause many technical and commercial
losses in the sector. The document further liberalizes the power sector by
formally ending the state monopoly on transport, distribution,
commercialization, import and export activities of electricity. All those
activities may now be undertaken by one or more private operators.

As in many countries in the region, electricity tariffs in Côte d’Ivoire have


been considered as too low and not cost reflective. Social tariffs have also been
put in place affecting the profitability of the sector and hindered investment
plans. Côte d’Ivoire has designed a new pricing strategy which consists of
taking a large volume of consumers out of the social tariffs, implementing
gradual price increases to bridge the generation cost differential and
renegotiating export prices. The Electricity Code reflects this pricing strategy
by setting the pricing principles for electricity.

b) Environment

 Water use

The 1998 Water Code (Code de l’Eau), established by Law No. 98-755, is the
principal piece of legislation governing use of precipitation, surface water,
groundwater and territorial seas in Côte d’Ivoire. Under the Water Code, the
country’s water resources are part of the common national heritage, and the state
provides integrated management of all water resources, facilities and structures.
The state’s water priorities are: (1) providing drinking water; (2) protecting,
conserving and managing water resources; and (3) satisfying other human water-
related needs. The state’s water management duties under the Water Code
include: maintaining quality of water resources; preventing waste; ensuring
availability; preventing waterborne disease; and developing and protecting water
facilities and structures. The government may contract out the operation of water
structures and facilities to other entities, as it has for the provision of drinking
water (discussed below) (GOCI 1998b).

Under the Water Code, the right to use water is connected to the right to use
land. For example, anyone can collect rainwater that falls on their land or use
water from a pond on their property without permission from the government.
However, certain water-related activities always require government approval,
including activities that: interfere with the free flow of surface or groundwater;
present a public health or safety danger; interfere with water navigation; degrade
the quality or quantity of water; significantly increase the risk of flooding; or
present a serious risk to the quality or diversity of the aquatic COTE D’IVOIRE–
PROPERTY RIGHTS AND RESOURCE GOVERNANCE PROFILE
environment. Use of water for grazing, industry, fishing, transportation or
recreation requires an easement (servitude) (GOCI 1998b).

Water users are subject to usage fees set by the state. The state can issue
decrees regulating quality standards (including discharge limits), measures of
classification and declassification, and management of system utilities. The Water
Code also provides a legal framework for water-related law enforcement, offenses
and penalties (GOCI 1998b).

The National Agency for Water of Côte d’Ivoire (Agence Nationale de l’Eau
de Côte d’Ivoire, or ANECI) has drafted decrees for the implementation of the
1998 Water Code in 2008, 2010 and 2011. However, as of 2012, the GOCI has
not passed any implementing decrees. Without an implementing decree, the
specifics of how the law works and what its standards are remain unclear
(N’Guessan 2012; Mémoué 2012).

The 1996 Environmental Code, established by Law No. 96-766, lays out the
legal framework for protection of the environment against pollution and
degradation, and contains provisions related to water management (Gadji 2003;
FAO 2005).
A hybrid lease contract (affermage) framework underlies the provision of
water in Côte d’Ivoire. The contract establishes a long-term arrangement between
a private water supply services enterprise and the state, which provides public
finance for development of the water supply infrastructure. The state awarded the
first concession contract in 1959 to the Urban and Rural Planning Company
(Société d’Aménagement Urbain et Rural, or SAUR), a French private water
distributor which operates through its Ivoirian subsidiary Côte d’Ivoire Water
Distribution Company (Société de Distribution d’Eau de Côte d’Ivoire, or
SODECI). The contract covered Abidjan and major cities and was later extended
to the entire country. In 1987, the government signed a new 20-year “concession”
contract with SODECI, which included changes to key terms. SODECI no longer
has responsibilities for rural areas. Instead, the onus to provide water services was
transferred to rural communities, although the government continues to provide
financing through regional cross-subsidization. Under the new agreement, the
GOCI and SODECI established a new Water Development Fund (Fonds de
Développement de l’Eau, or FDE) under which SODECI collects a tariff
surcharge from connected customers and manages the fund for network extension
and subsidized household connections. The contract provides for tariff revisions
every five years, but this process was delayed during the conflict. Consequently,
in recent years SODECI has not collected enough to keep up with maintenance
costs (Tremolet et al. 2002; Fall et al. 2009; Foster and Pushak 2010).
Côte d’Ivoire is a member of the Niger Basin Authority and the Volta Basin
Authority, intergovernmental organizations that foster cooperation in managing
and developing the resources of the Niger River Basin and Volta River Basin,
respectively. Côte d’Ivoire also ratified the Convention on Wetlands, an
intergovernmental treaty committing members to protect and sustainably use
wetlands (GOCI 1998b; ABN 2012; Modern Ghana 2006; Ramsar 2005).

 Environmental Impact

 Hydrological and hydraulic modifications in the river’s lower


course:
The project will be implemented in an environment where similar facilities
have been established for several decades, in particular, the hydropower dams of
Kossou (commissioned in 1972) and Taabo (commissioned in 1979). Apart from
the economic impacts of these two (02) facilities for Côte d’Ivoire’s central
government, these structures have impacts on surface water resources in
particular, modifications to the hydrological regime of the water course. For a
new project, these impacts should be strengthened, which will further disturb the
hydrological functioning of the river.

 Deterioration of water quality:


It should be noted that the study on the aquatic environment revealed that the
water course is slightly turpid and loaded with SS at the level of the Taabo dam
reservoir (upstream) and the N’Zi (downstream). This situation is mainly due to
the use of fertilizers and pesticides, and domestic discharges at the watershed
level, which are then washed towards the water course.

 Degradation of forest :

The study on flora and the study on fauna showed that the classified forest (unlike
the LAMTO reserve) exists in name only since it has already been severely
anthropized with the presence of several plantations and areas of fallow land
within it. This degradation could be exacerbated by the project with the possible
disappearance of this protected area due to the presence of personnel of the
contractor (during the works phase) and of the dam operator (during the
operational phase).

 Increase in land disputes.

The Region of Agneby-Tiassa, like all the country’s regions is under great land
pressure. The displacement and resettlement of PAPs will, therefore, exacerbate
cases of land disputes. Appeal, redress and grievance management mechanisms
will be proposed in order to ensure transparent management of claims that could
be received by the project

 Increase in waterborne diseases

The high prevalence in the study area of water-borne diseases, in particular


malaria, is due to the existence of the dam.

3-7 Mitigation measures

3-7-1. Normative and Administrative Measures

It is necessary to ensure the project’s compliance with applicable regulations,


administrative and contractual requirements, in particular:

 Compliance with environmental and social regulations

The project must ensure compliance with existing national environmental


regulations as well as those of AfDB in both the construction and operational
phases. Also, a list of authorizations and permits must be produced and the
engineering consultant will have to ensure that the developer, contractor and its
sub-contractors also comply with them. The submission of the ESIA certificate of
environmental compliance to the Board of Directors is one of the conditions of
the environmental action plan.

Environmental and Social Management System (ESMS)

Its objective is to prevent and minimize negative environmental and social


impacts and to enhance the positive impact of the project implemented by the
sponsor . It will provide the framework and guidelines guaranteeing that the latter
has a strong commitment and the capacity to comply with national legislation and
donors’ policies and standards in force in its selection, approval, investment and
monitoring operations relating to the Singrobo-Ahouaty Hydropower
Development Project. IHE has planned the establishment of this ESMS on the
basis of the ISO 14001 reference in addition to attestations of safety and social
accountability.

 Hygiene, Health, Safety and Environment Plan:

Project will prepare a specific HHSE Plan for its activity and the project in
accordance with performance standards environmental and safety guidelines and
the appropriate national requirements.

 Environmental flows:
Environmental flows are the quantity,timing,duration,frequency and quality of
flows required to sustain ecosystems and the human livelihoods and well being
that depend on them downstream of water bodies.

In Côte d’Ivoire the average precipitation is 1348 millimeters per year, and
rainfall varies by region. The tropical south, including the forest region, has the
most abundant and consistent rainfall (about 1500 millimeters annually), with two
rainy seasons (March-June and September-November) and two dry seasons
(December-March and July-August). The area in the middle of the country also
has four seasons and averages between 1200 and 1500 millimeters of
precipitation annually, but the rainfall is more erratic, and the area is more
susceptible to flooding. The semi-arid savannah in the north has only one rainy
season, averages between 900 and 1200 millimeters of rainfall per year and is
also susceptible to floods and droughts (FAO 2005; GWP 2012; Gadji 2003;
Aregheore 2009; IDA 1997; Duflo and Udry 2003).

Annually, 1.4 billion cubic meters of freshwater are withdrawn, of which


agriculture claims 43%, domestic use 38% and industry 19%. Most cultivation
completely depends on rainfall, including 90% of rice crops. Only 2% of
permanent cropland (or 0.4% of total agricultural land) is equipped for irrigation.
Areas that are irrigatated generally produce industrial or export crops (World
Bank 2012; Duflo and Udry 2003; FAO 2005).

3-5 Status of rural electrification in Côte d’Ivoire

Côte d’Ivoire electricity access reached 92% of the population in urban areas,
while in rural areas is still limited to 38%, although increasing. The national
overall electricity access rate is 64%. This rate is one of the highest in the sub
region. The Global Tracking Framework estimates the national access to clean
cooking solutions at 19%.

3-6. Integration of different electricity sources

Cote d’Ivoire set a target to have 42 percent of its energy produced


by renewable energy by 2030 (with a breakdown of 26 percent large hydro and
the other 16 percent into “other”—solar biomass, small hydro, and wind).The
National Action Plan for Renewable Energy outlines plans for installed capacity
(6000 MW) . The projections are ambitious, partly because they give high
capacity factors to hydro (60 percent for small, 46 percent for large) and biomass
(84 percent), but they show the 42 percent target being achieved in generation
(MWh).
3-7. Barriers and challenges

3-7-1 Barriers

One of the biggest barriers facing SHP development is the lack of new studies
on potential sites. With new studies undertaken, it is likely that the estimated
figure of 40.68 MW would be significantly greater.
However, due to the importance of the electricity sector for the country’s
economic recovery, more attention is being given to the potential of RE. It is
likely that SHP in the country will benefit from this.

3-6-2. Challenges

The average existing hydropower capacity factor was 26.7 percent in 2016,
below an average global factor of 50 percent for new projects.This low capacity is
partly due to take-or-pay commitments. Although favorable to IPPs, these
commitments can lead to inflexibility in the management of generation facilities
and even force water spillage. As a result, energy produced by the IPPs must be
produced and purchased as a priority. This arrangement can increase the
complexity of developing a cost-effective, efficient development plan.
CHAPTER 3: CONCLUSIONS AND RECOMMENDATIONS

3-1. CONCLUSION

Based on the details worked out following conclusions may be drawn:

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