1 ► infrastructure integration in the ► wapp region ► ► cee-ut workshop ► ► abuja, may...

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►INFRASTRUCTURE INTEGRATION INFRASTRUCTURE INTEGRATION IN THE IN THE

►WAPP REGIONWAPP REGION

► CEE-UT Workshop► Abuja, May 1st & 2nd 2008

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Presentation OutlinePresentation Outline

►Present situationPresent situation►WAPP organisationWAPP organisation►WAPP Master PlanWAPP Master Plan►WAPP Transmission Priority ProjectsWAPP Transmission Priority Projects►WAPP Generation Priority Projects WAPP Generation Priority Projects ►The way forwardThe way forward

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►THE PRESENT SITUATIONTHE PRESENT SITUATION

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Africa, The Dark ContinentAfrica, The Dark Continent

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Current Power Supply Situation in the Current Power Supply Situation in the West African Sub-RegionWest African Sub-Region

► Inadequate/Non Existent Transmission Inadequate/Non Existent Transmission Interconnections in ECOWAS Member States Interconnections in ECOWAS Member States and also between ECOWAS Member States;and also between ECOWAS Member States;

► Inadequate Generation Capacity in ECOWAS Inadequate Generation Capacity in ECOWAS Member States resulting in Power Member States resulting in Power Shortages;Shortages;

► Inability of ECOWAS Member States to raise Inability of ECOWAS Member States to raise the necessary financing to implement the the necessary financing to implement the projects required to alleviate the situation.projects required to alleviate the situation.

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ECOWAS Demand-Supply BalanceECOWAS Demand-Supply Balance

Unmet46%

Met54%

661 688 3,004 1707,773

860 16 16 841

38,370

1,800 56 674-

10,000

20,000

30,000

40,000

50,000

GWh

MetUnmet

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►THE WEST AFRICAN POWER POOLTHE WEST AFRICAN POWER POOL

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ECOWAS ADDRESSES THE NEEDSECOWAS ADDRESSES THE NEEDS

► To address this situation of need, the To address this situation of need, the Economic Community of Western African Economic Community of Western African States (ECOWAS) created a new States (ECOWAS) created a new organization: the West African Power Pool organization: the West African Power Pool (WAPP)(WAPP)

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WAPP VISIONWAPP VISION

► The vision of the West African Power Pool The vision of the West African Power Pool (WAPP) Organization is to integrate the (WAPP) Organization is to integrate the operations of the national power systems operations of the national power systems into a unified, sustainable regional into a unified, sustainable regional electricity market, with the ultimate goal of electricity market, with the ultimate goal of providing the ECOWAS Member States with providing the ECOWAS Member States with stable and reliable electricity supply at stable and reliable electricity supply at affordable costaffordable cost

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WAPP ORGANIZATIONWAPP ORGANIZATION

► Formed January 2006 by decision of the Formed January 2006 by decision of the Heads of State and of Government Heads of State and of Government Articles of Agreement approvedArticles of Agreement approved WAPP = Specialised Institution of ECOWASWAPP = Specialised Institution of ECOWAS Headquarters Agreement with the Republic of Headquarters Agreement with the Republic of

BeninBenin

► Articles of AgreementArticles of Agreement Utility associationUtility association Defines governance/operation structure and rolesDefines governance/operation structure and roles Operation funded by Members’ contributionsOperation funded by Members’ contributions

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WAPP MISSIONWAPP MISSION

► Improve supply of reliable, stable, Improve supply of reliable, stable, sustainable, affordable electricitysustainable, affordable electricity

► Develop integrated regional electricity Develop integrated regional electricity marketmarket Least cost developmentLeast cost development Economies of scaleEconomies of scale Access to primary energy resourcesAccess to primary energy resources Increased coverageIncreased coverage Maximum benefits through tradeMaximum benefits through trade

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WAPP OBJECTIVESWAPP OBJECTIVES

► Facilitate Infrastructure development Facilitate Infrastructure development Transmission interconnectionsTransmission interconnections Exploit primary energy resources (Natural Gas; Hydro)Exploit primary energy resources (Natural Gas; Hydro)

► Capacity-Building for Secretariat and Member Capacity-Building for Secretariat and Member UtilitiesUtilities

► Develop harmonised Codes & standards to Develop harmonised Codes & standards to facilitate operation, trade and development, facilitate operation, trade and development, e.g.e.g. Operation Manual (OSMP)Operation Manual (OSMP) Planning & design criteriaPlanning & design criteria

► Develop and improve energy TradingDevelop and improve energy Trading System monitoring & coordinationSystem monitoring & coordination Standard agreements (trading, wheeling, power purchase)Standard agreements (trading, wheeling, power purchase) Electricity market (rules, governance, metering, settlement)Electricity market (rules, governance, metering, settlement)

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NIGERIABENIN

TOGO

GHANA

SENEGALGAMBIA

GUINEABISSAU

GUINEA

SIERRALEONE

NIGER

MALI

CÔTED’IVOIRE

BURKINA FASO

LIBERIA

THE CHALLENGE: THE CHALLENGE: Integrating Fragmented National Power Integrating Fragmented National Power

SystemsSystems

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►WAPP MASTER PLANWAPP MASTER PLAN

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Master Plan for Infrastructure Master Plan for Infrastructure DevelopmentDevelopment

In line with WAPP Mission and Objectives,In line with WAPP Mission and Objectives, the ECOWAS Council of Ministers adopted in the ECOWAS Council of Ministers adopted in 1999 a Master Plan to develop electricity 1999 a Master Plan to develop electricity generation and transmission infrastructure, generation and transmission infrastructure, and to interconnect the national electrical and to interconnect the national electrical power systemspower systems

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Master Plan Master Plan for Infrastructure Developmentfor Infrastructure Development

Revised in 2004, the Master PlanRevised in 2004, the Master Plan

Defines the long-term vision and implementation Defines the long-term vision and implementation strategy for the regional transmission systemstrategy for the regional transmission system

Identifies the capital costs of the regional Identifies the capital costs of the regional transmission investment program over the next transmission investment program over the next 17 years (2020 horizon)17 years (2020 horizon)

Identifies requirements for the stability, reliability Identifies requirements for the stability, reliability and operability of the regional systemsand operability of the regional systems

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Investment RequirementsInvestment Requirements

Overall Generation and Transmission Investment Requirements

0

1 000

2 000

3 000

4 000

5 000

6 000

2004-7 2008-11 2012-15 2016-20

2004

US

D m

illio

ns

generation WAPP projects transmission reinforcement

N:\COST ESTIMATES FOR IMPLEMENTATION

Overall Generation and Transmission Investment Requirements(2004 USD millions)

9 billion USD by 2011(2004 prices)

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WAPP IMPLEMENTATION STRATEGYWAPP IMPLEMENTATION STRATEGY

Coastal Transmission Backbone SubprogramCoastal Transmission Backbone Subprogram (Cote d’Ivoire, Ghana, Benin/Togo, Nigeria)(Cote d’Ivoire, Ghana, Benin/Togo, Nigeria)..

Inter-zonal Transmission Hub Sub-programInter-zonal Transmission Hub Sub-program (Burkina Faso, OMVS via Mali, LSG via Cote d’Ivoire)(Burkina Faso, OMVS via Mali, LSG via Cote d’Ivoire)..

North-core Transmission Sub-programNorth-core Transmission Sub-program (Nigeria, (Nigeria, Niger, Burkina Faso, Benin)Niger, Burkina Faso, Benin)..

OMVG/OMVS Power System Development OMVG/OMVS Power System Development SubprogramSubprogram (The Gambia, Guinea, Guinea Bissau, Mali, Senegal)(The Gambia, Guinea, Guinea Bissau, Mali, Senegal)

Cote d’Ivoire-Liberia-Sierra Leone-Guinea Power Cote d’Ivoire-Liberia-Sierra Leone-Guinea Power System Re-development SubprogramSystem Re-development Subprogram (Cote d’Ivoire, (Cote d’Ivoire, Liberia, Sierra Leone, Guinea)Liberia, Sierra Leone, Guinea)..

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NIGERIA

NIGERSENEGAL

GAMBIA

GUINEABISSAU

GUINEA

MALI

SIERRALEONE

LIBERIA

Implementation Road Map

TOGO

GHANA

CÔTED’IVOIRE

BURKINA FASO

BENIN

Coastal Trans Backbone Sub-program

Inter-Zonal Trans Sub-program

North-core Trans Sub-program

OMVG/OMVS Development Sub-program

LSG System Redevelopment Sub-program

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NIGERIA

NIGER

BENIN

TOGO

GHANA

BURKINA FASO

CÔTED’IVOIRE

GUINEABISSAU

GUINEA

SIERRALEONE

SENEGAL

MALI

LIBERIA

GAMBIA

Interconnected Countries 2006Interconnected Countries 2006

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NIGERIA

NIGER

BENIN

TOGO

GHANA

BURKINA FASO

CÔTED’IVOIRE

GUINEABISSAU GUINEA

SIERRALEONE

SENEGAL

MALI

LIBERIA

GAMBIA


Tako

radi

Cot

onou

Lom

é

Lago

s

Tem

a

West Africa Gas Pipeline (WAGP) ProjectWAPP 330 kV Coastal

Transmission Backbone

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GUINEABISSAU GUINEA

SIERRALEONE

LIBERIA

GAMBIA


SENEGAL

MALI

NIGERIA

NIGER

BENIN

TOGO

GHANA

BURKINA FASO

CÔTED’IVOIRE

Tako

radi

Cot

onou

Lom

é

Lago

s

Tem

a

WAPP 225 kV WAPP Zone A/B “Hub”

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GUINEABISSAU

GUINEA

SIERRALEONE

LIBERIA

GAMBIA

Interconnected Countries 2011-12Interconnected Countries 2011-12

WAPP 225 kV OMVG Ph.I

NIGERIA

NIGER

BENIN

TOGO

GHANA

BURKINA FASO

CÔTED’IVOIRE

Tako

radi

Cot

onou

Lom

é

Lago

s

Tem

a

MALI

SENEGAL

WAPP 225 kV LSG Interconnection

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►WAPP PRIORITY PROJECTSWAPP PRIORITY PROJECTS

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Transmission Projects to 2011Transmission Projects to 2011

► Ikeja West-Sakété (Nigeria-Benin)Ikeja West-Sakété (Nigeria-Benin) 20072007► Bobo Dioulasso-Ouagadougou (Burkina Faso)Bobo Dioulasso-Ouagadougou (Burkina Faso) 20082008► Aboadze-Volta (Ghana)Aboadze-Volta (Ghana) 20082008► Volta-Momé Hagou-Sakété (Ghana-Togo-Benin)Volta-Momé Hagou-Sakété (Ghana-Togo-Benin) 20092009► Aboadze-Prestea-Kumasi (Ghana)Aboadze-Prestea-Kumasi (Ghana) 20092009► Bolgatanga-Ouagadougou (Ghana- Burkina Faso)Bolgatanga-Ouagadougou (Ghana- Burkina Faso) 20102010► Han-Bobo Dioulasso-Sikasso-Bamako Han-Bobo Dioulasso-Sikasso-Bamako

(Ghana-Burkina Faso-Mali)(Ghana-Burkina Faso-Mali) 20102010► OMVG (Guinea-Guinea-Bissau-The Gambia-Senegal)OMVG (Guinea-Guinea-Bissau-The Gambia-Senegal)

20112011

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Transmission Projects 2011-20Transmission Projects 2011-20

► Côte d’Ivoire-Liberia/Guinée Forestière-Sierra Côte d’Ivoire-Liberia/Guinée Forestière-Sierra Leone-Guinée MaritimeLeone-Guinée Maritime

► OMVG Phase II (loop via Sambangalou, OMVG Phase II (loop via Sambangalou, Tambacounda)Tambacounda)

► OMVS Kayes-Tambacounda Line (Mali-Senegal)OMVS Kayes-Tambacounda Line (Mali-Senegal)► Nigeria-Niger-Benin, Burkina Faso (North Core)Nigeria-Niger-Benin, Burkina Faso (North Core)► Côte d’Ivoire-MaliCôte d’Ivoire-Mali► Côte d’Ivoire-Guinea-MaliCôte d’Ivoire-Guinea-Mali

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330kV WAPP Coastal Transmission Backbone

NIGERIABENINTOGOGHANA

CÔTED’IVOIRE

Kumasi

Obuasi

Prestea

Aboadze

Accra

Volta

Akosombo

Lomé

MoméHague

Cotonou

Sakété

Existing 161 kVCommitted 330 kV lineCommitted 161 kV lineProposed 330 kV operated at 161 kV

NIGERIABENINTOGOGHANA

CÔTED’IVOIRE

Kumasi

Obuasi

Prestea

Aboadze

Accra

Volta

Akosombo

Lomé

Momé Hagou

Cotonou

Sakété

Existing 161 kV330/161 kV line under constructionUnder dev’t 330 kV

2008

2006

2009

2009

2009

WAPP Zone AWAPP Zone A Priority ProjectsPriority Projects

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WAPP Zone AWAPP Zone A Priority ProjectsPriority Projects

NIGERIATOGO

GHANA

GUINEA

NIGERMALI

CÔTED’IVOIRE

BURKINA FASO

LIBERIA

Interconnection in service

Committed interconnection

Under development

B. KebbiOuagadougou

Niamey

330kV WAPP Northern Transmission Corridor (North Core)

BembèrèkèBENIN

2008

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West Africa Gas Pipeline (WAGP)West Africa Gas Pipeline (WAGP)

GHANA TOGO BENIN NIGERIA

Tema Regulating & Metering Station

Takoradi Regulating & Metering Station

Mainline 560 km x 18”/20”

Cotonou Regulating & Metering Station Lome

Regulating & Metering Station

Onshore Pipeline 56 km x 30”

Existing ELP Pipeline

Alagbado Tee

Lagos Beach Compressor Station








Alagbado Tee









Alagbado Tee









Alagbado Tee


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“OMVS Power System”- 2nd Generation Projects

Canakry

GUINEA-BISSAU

GUINEA

Bissau

Kaléta

Linsan

Transmission Line

Substation

Existing 225 kVUnder dev’t 225 kV

Proposed Hydro

THE GAMBIA

SENEGAL

MAURITANIA

MALI

Dakar

Bamako

OMVS

Sambangalou

Brikama

Kaolack

Tambacounda

KayesFelou

Gouina

WAPP Zone B Priority ProjectsWAPP Zone B Priority Projects

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“OMVG Power System”

THE GAMBIA

GUINEA-BISSAU

GUINEA

Bissau

Kaléta

Linsan

Transmission Line

Substation

Existing 225 kVUnder dev’t 225 kV

Proposed Hydro

SENEGAL

MAURITANIA

MALI

Dakar

Bamako

OMVS

Sambangalou

Brikama

Kaolack

Tambacounda

Tanaf

Soma

Boke

Labe

Mali

Pita

Felou

Gouina


33225kV WAPP Zone A/B “Hub”

BURKINA FASO

MAURITANIA

GUINEA

CÔTED’IVOIRE

ManantaliBamako

Ségou

LIBERIAAbidjan

NIGER

Sikasso

GHANA

BURKINA FASO

Ouagadougou

Ferkéssedougou

CÔTE D’IVOIRE

MALIOMVSSENEGAL

2008


Bobo Dioulasso BolgatangaHan

GUINEA

GUINEABISSAU

Laboa

BuchananMonrovia

Freetown Nzérékoré

Kindia

SIERRALEONE

Under dev’t 225kV

Existing 225kV

225kV under construction

Man

LIBERIASanniquellie

Bumbuna

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Generation ProjectsGeneration Projects► Hydro :Hydro :

OMVS - Félou OMVS - Félou 20122012 OMVG - KalétaOMVG - Kaléta 20122012 OMVS - Gouina OMVS - Gouina OMVG - SambangalouOMVG - Sambangalou OMVG - SouapitiOMVG - Souapiti Liberia - St.Paul River, Mt.CoffeeLiberia - St.Paul River, Mt.Coffee Sierra Leone – Bumbuna, Benkongor, YbenSierra Leone – Bumbuna, Benkongor, Yben Guinea – KassaGuinea – Kassa Nigeria - Zungeru, Mambila, Lokoja, Onitsha, Ikom, Gurara, Makurdi, Nigeria - Zungeru, Mambila, Lokoja, Onitsha, Ikom, Gurara, Makurdi,

Dyondyonga, Gambou, KandadjiDyondyonga, Gambou, Kandadji

► Thermal:Thermal: Nigeria –Okitipupa, Papalanto, Ibom Power, Alaoji, Geregu, Afam VINigeria –Okitipupa, Papalanto, Ibom Power, Alaoji, Geregu, Afam VI Ghana - Ghana - Takoradi steam turbine, Tema CCGTTakoradi steam turbine, Tema CCGT Senegal – KahoneSenegal – Kahone

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GUINEABISSAU

GUINEA

SIERRALEONE

LIBERIA

GAMBIA

NIGERIA

NIGER

BENIN

TOGO

GHANA

BURKINA FASO

CÔTED’IVOIRE

Tako

radi

Cot

onou

Lom

é

Lago

s

Tem

a

MALI

Under construction or financing closedUnder development

SENEGAL

Regional energy development Regional energy development – generation projects– generation projects

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THE WAY FORWARDTHE WAY FORWARD

► Realizing WAPP vision - the integration of the Realizing WAPP vision - the integration of the presently fragmented national power presently fragmented national power systems into a unified, sustainable regional systems into a unified, sustainable regional electricity market – requires a long and electricity market – requires a long and complex process which cannot be fully complex process which cannot be fully predicted at this stage. We may, however, predicted at this stage. We may, however, attempt to anticipate the series of steps attempt to anticipate the series of steps which need to be taken for the creation of a which need to be taken for the creation of a regional electricity marketregional electricity market

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WHAT IS A WHAT IS A “REGIONAL ELECTRICITY MARKET”“REGIONAL ELECTRICITY MARKET”

► Today, there are cross-border exchanges of Today, there are cross-border exchanges of electricity without competition among electricity without competition among sellers, or among buyerssellers, or among buyers A market would require some kind of competitionA market would require some kind of competition A regional market is different from a national marketA regional market is different from a national market

► We recommend the following definition: a We recommend the following definition: a regional electricity market regional electricity market exists, whenexists, when

Producers are able to export energy on a competitive basis, or Producers are able to export energy on a competitive basis, or sell to a regional power exchange, and sell to a regional power exchange, and

Distribution companies and large end users are able to import Distribution companies and large end users are able to import energy on a competitive basis, or buy from a regional power energy on a competitive basis, or buy from a regional power exchange exchange

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CREATION OF WAPP ELECTRICITY CREATION OF WAPP ELECTRICITY MARKET MARKET

MEDIUM TERM OBJECTIVE (2011)MEDIUM TERM OBJECTIVE (2011)

System operator

Distribution Distribution Distribution

All customers

Genco-transco

Production

TransmissionPower

producerPower

producer

Genco-transco

Production

Transmission

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SUGGESTED PHASES FORSUGGESTED PHASES FORMEDIUM TERM OBJECTIVE (2011)MEDIUM TERM OBJECTIVE (2011)

►Phase 1Phase 1: Bilateral trading: Bilateral trading Measurement of Net Transfer Capacity (NTC)Measurement of Net Transfer Capacity (NTC) Unbundling of accounts for the regional networkUnbundling of accounts for the regional network

►Phase 2Phase 2: Bilateral trading, with a few : Bilateral trading, with a few transit flowstransit flows

Allocation of NTC on the basis of contract priorityAllocation of NTC on the basis of contract priority Calculation of transmission tariffs for regional Calculation of transmission tariffs for regional

networknetwork

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SUGGESTED STEPS FOR SUGGESTED STEPS FOR MEDIUM TERM OBJECTIVE (2011)MEDIUM TERM OBJECTIVE (2011)

► WAPP member utilities should - WAPP member utilities should - Establish clear rules on who has the right to use Establish clear rules on who has the right to use

cross-border interconnection capacitycross-border interconnection capacity► Should the importing country claim 100 percent for its Should the importing country claim 100 percent for its

own national power company, or genco-transco?own national power company, or genco-transco?► How much capacity is available for transit? When?How much capacity is available for transit? When?

Separate the regional network from the national Separate the regional network from the national networknetwork

► Best solution: separate ownershipBest solution: separate ownership► Next best solution: separate accountsNext best solution: separate accounts

Agree on who will pay a transmission tariff for Agree on who will pay a transmission tariff for use of the new 330kV and 225kV linesuse of the new 330kV and 225kV lines

► How much capacity will be “reserved” for IPP deals?How much capacity will be “reserved” for IPP deals? Develop a standard transmission service contractDevelop a standard transmission service contract

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LONG TERM OBJECTIVE: LONG TERM OBJECTIVE: TRANSITION FROM REGULATED PRICES TRANSITION FROM REGULATED PRICES

TO WHOLESALE MARKET PRICESTO WHOLESALE MARKET PRICES

Power producer

Power producer

Power producer Market

operator

System operator

Distribution Distribution Distribution Eligible customers

Non-eligible customers

Power exchange,or trading system

managed by a Market Operator

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SUGGESTED PHASES FORSUGGESTED PHASES FORLONG TERM OBJECTIVE (2020)LONG TERM OBJECTIVE (2020)

► Phase 3Phase 3: Merging of : Merging of selectedselected zones in the zones in the regional networkregional network In each zone there is a regional transmission In each zone there is a regional transmission

company company oror the network is operated as one the network is operated as one transmission company transmission company

► Phase 4Phase 4: Start of the regional electricity : Start of the regional electricity marketmarket Competition among buyers and sellersCompetition among buyers and sellers Each market participant gets access to the whole Each market participant gets access to the whole

WAPP regional network by paying only one WAPP regional network by paying only one transmission tarifftransmission tariff

Transit tariffs and export tariffs are eliminatedTransit tariffs and export tariffs are eliminated

► Phase 5Phase 5: Start of a regional power exchange: Start of a regional power exchange Congestion management approachCongestion management approach

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LONG TERM OBJECTIVE: LONG TERM OBJECTIVE: TRANSITION FROM REGULATED PRICES TRANSITION FROM REGULATED PRICES

TO WHOLESALE MARKET PRICESTO WHOLESALE MARKET PRICES► Given a political choice between:Given a political choice between:

Low electricity prices set by the government, resulting in Low electricity prices set by the government, resulting in blackouts and shortages of generating capacityblackouts and shortages of generating capacity

High electricity prices set by a well-designed market, with no High electricity prices set by a well-designed market, with no blackouts and no generating capacity shortagesblackouts and no generating capacity shortages

… … many governments would opt for the 1st alternativemany governments would opt for the 1st alternative

► Electricity prices must not be too low, or power shortages will Electricity prices must not be too low, or power shortages will follow, nor too high, or social unrest will follow. Finding a follow, nor too high, or social unrest will follow. Finding a balance absorbs most political attention, causing to loose balance absorbs most political attention, causing to loose sight of the longer-term objective of creating a regional sight of the longer-term objective of creating a regional electricity market which, with help from Adam Smith’s electricity market which, with help from Adam Smith’s invisible hand, will automatically find the correct price levels.invisible hand, will automatically find the correct price levels.

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►THE FINAL OBJECTIVETHE FINAL OBJECTIVE

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Lighting Up West Lighting Up West AfricaAfrica

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THANK YOUTHANK YOU

1 ► infrastructure integration in the ► wapp region ► ► cee-ut workshop ► ► abuja, may...

Documents

wapp master plan slide

trade slide

settlement slide

wapp vision

wapp mission

wapp objectives

present situation slide

affordable cost slide