Presentation Outline
► Present
situation
► WAPP organisation
► WAPP Master Plan
► WAPP Transmission Priority Projects
► WAPP Generation Priority Projects
► The way forward
►INFRASTRUCTURE
INTEGRATION IN THE
►WAPP REGION
CEE-UT Workshop
Abuja, May 1st & 2nd 2008
►
►
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Africa, The Dark Continent
► THE
PRESENT SITUATION
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Current Power Supply Situation in the
West African Sub-Region
► Inadequate/Non
Existent Transmission
Interconnections in ECOWAS Member States and
also between ECOWAS Member States;
► Inadequate
Generation Capacity in ECOWAS
Member States resulting in Power Shortages;
► Inability
of ECOWAS Member States to raise the
necessary financing to implement the projects
required to alleviate the situation.
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6
ECOWAS DemandDemand-Supply Balance
Met
54%
Unmet
46%
GWh
► THE
50,000
WEST AFRICAN POWER POOL
40,000
30,000
Met
Unmet
20,000
38,370
10,000
-
661
n
ni
Be
a
in
rk
Bu
688
3,004
7,773
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oi
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am
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e
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o
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so
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ha
G
860
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a
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ui
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au
ss
Bi
16
be
Li
16
ria
841
i
al
M
1,800
l
e
ia
ga
on
er
ig
ne
Le
e
N
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ra
er
Si
56
674
go
To
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ECOWAS ADDRESSES THE NEEDS
WAPP VISION
► The
vision of the West African Power Pool (WAPP)
Organization is to integrate the operations of the
national power systems into a unified, sustainable
regional electricity market, with the ultimate goal
of providing the ECOWAS Member States with
stable and reliable electricity supply at affordable
cost
► To
address this situation of need, the Economic
Community of Western African States (ECOWAS)
created a new organization: the West African
Power Pool (WAPP)
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WAPP ORGANIZATION
WAPP MISSION
► Improve
supply of reliable, stable, sustainable,
affordable electricity
► Develop integrated regional electricity market
► Formed
January 2006 by decision of the Heads of
State and of Government
ƒ
ƒ
ƒ
Articles of Agreement approved
WAPP = Specialised Institution of ECOWAS
Headquarters Agreement with the Republic of Benin
► Articles
ƒ
ƒ
ƒ
ƒ
ƒ
of Agreement
ƒ Utility association
ƒ Defines governance/operation structure and roles
ƒ Operation funded by Members’
Members’ contributions
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Least cost development
Economies of scale
Access to primary energy resources
Increased coverage
Maximum benefits through trade
12
THE CHALLENGE:
WAPP OBJECTIVES
Integrating Fragmented National Power Systems
► Facilitate Infrastructure development
ƒ Transmission interconnections
ƒ Exploit primary energy resources (Natural Gas; Hydro)
► Capacity-Building
MALI
for Secretariat and Member
SENEGAL
GAMBIA
Utilities
► Develop harmonised Codes & standards to
facilitate operation, trade and development, e.g.
GUINEA
GUINEA
BISSAU
ƒ Operation Manual (OSMP)
ƒ Planning & design criteria
NIGER
BURKINA FASO
BENIN
SIERRA
LEONE
► Develop and improve energy Trading
ƒ System monitoring & coordination
ƒ Standard agreements (trading, wheeling, power purchase)
ƒ Electricity market (rules, governance, metering, settlement)
LIBERIA
NIGERIA
TOGO
CÔTE
D’IVOIRE
GHANA
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Master Plan for Infrastructure Development
► WAPP
In line with WAPP Mission and Objectives, the
ECOWAS Council of Ministers adopted in 1999 a
Master Plan to develop electricity generation and
transmission infrastructure, and to interconnect
the national electrical power systems
MASTER PLAN
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Master Plan
for Infrastructure Development
Investment Requirements
Revised in 2004, the Master Plan
O verall G eneration and T ransm ission
Investm ent R equirem ents
ƒ Defines the longlong-term vision and implementation
6 000
strategy for the regional transmission system
2004 USD millions
5 000
ƒ Identifies the capital costs of the regional
transmission investment program over the next 17
years (2020 horizon)
9 billion U SD by 2011
(2004 prices)
4 000
3 000
2 000
1 000
0
ƒ Identifies requirements for the stability, reliability and
2004-7
operability of the regional systems
2008-11
g e ne ratio n
WA P P p ro je cts
2012-15
2016-20
transm issio n re info rce m e nt
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Coastal Trans Backbone Sub-program
Inter-Zonal Trans Sub-program
WAPP IMPLEMENTATION STRATEGY
North-core Trans Sub-program
OMVG/OMVS Development Sub-program
LSG System Redevelopment Sub-program
ƒ Coastal Transmission Backbone Subprogram (Cote
d’Ivoire, Ghana, Benin/Togo, Nigeria).
MALI
ƒ InterInter-zonal Transmission Hub SubSub-program (Burkina Faso,
OMVS via Mali, LSG via Cote d’
d’Ivoire).
SENEGAL
ƒ NorthNorth-core Transmission SubSub-program (Nigeria, Niger,
NIGER
GAMBIA
Burkina Faso, Benin).
GUINEA
BISSAU
BURKINA FASO
NIGERIA
GUINEA
ƒ OMVG/OMVS Power System Development Subprogram
BENIN
(The Gambia, Guinea, Guinea Bissau, Mali, Senegal)
SIERRA
LEONE
ƒ Cote d’
d’IvoireIvoire-LiberiaLiberia-Sierra LeoneLeone-Guinea Power
System Red’Ivoire, Liberia,
Re-development Subprogram (Cote d’
CÔTE
D’IVOIRE
TOGO
GHANA
LIBERIA
Sierra Leone, Guinea).
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Implementation Road Map
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Interconnected Countries 2006
Interconnected Countries 2007
MALI
MALI
SENEGAL
NIGER
SENEGAL
NIGER
GAMBIA
GAMBIA
GUINEA
NIGERIA
CÔTE
D’IVOIRE GHANA
SIERRA
LEONE
CÔTE
D’IVOIRE GHANA
LIBERIA
LIBERIA
WAPP 330 kV Coastal
Transmission Backbone
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Interconnected Countries 2010
Te m
a
Lom
é
Co
to n
o
Lag u
os
TOGO
WAPP 225 kV WAPP
Zone A/B “Hub”
NIGERIA
TOGO
rad
i
SIERRA
LEONE
BURKINA
FASO
BENIN
BURKINA
FASO
BENIN
Ta
ko
GUINEA
GUINEA
BISSAU
GUINEA
BISSAU
West Africa Gas Pipeline
(WAGP) Project
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Interconnected Countries 2011-12
WAPP 225 kV OMVG Ph.I
MALI
MALI
NIGER
NIGER
SENEGAL
SENEGAL
GAMBIA
GUINEA
GUINEA
BISSAU
NIGERIA
TOGO
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NIGERIA
TOGO
CÔTE
D’IVOIRE GHANA
rad
i
Te m
a
Lom
é
Co
ton
o
Lag u
os
rad
i
LIBERIA
GUINEA
SIERRA
LEONE
LIBERIA
Ta
ko
SIERRA
LEONE
CÔTE
D’IVOIRE GHANA
BURKINA
FASO
BENIN
WAPP 225 kV LSG
Interconnection
Te m
a
Lom
é
Co
ton
o
Lag u
os
GUINEA
BISSAU
BURKINA
FASO
BENIN
Ta
ko
GAMBIA
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Transmission Projects to 2011
►
►
► WAPP
PRIORITY PROJECTS
►
►
►
►
►
►
Ikeja WestWest-Saké
Sakété (Nigeria(Nigeria-Benin)
Bobo DioulassoDioulasso-Ouagadougou (Burkina Faso)
AboadzeAboadze-Volta (Ghana)
VoltaVolta-Momé
Momé HagouHagou-Saké
Sakété (Ghana(Ghana-TogoTogo-Benin)
AboadzePresteaKumasi
(Ghana)
Aboadze Prestea
BolgatangaBolgatanga-Ouagadougou (Ghana(Ghana- Burkina Faso)
HanHan-Bobo DioulassoDioulasso-SikassoSikasso-Bamako
(Ghana(Ghana-Burkina FasoFaso-Mali)
OMVG (Guinea(Guinea-GuineaGuinea-BissauBissau-The GambiaGambia-Senegal)
2007
2008
2008
2009
2009
2010
2010
2011
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Transmission Projects 2011-20
►
►
►
►
►
►
WAPP Zone A Priority Projects
GHANA
Côte d’
ée Forestiè
d’IvoireIvoire-Liberia/Guin
Liberia/Guiné
Forestièrere-Sierra LeoneLeoneGuiné
Guinée Maritime
OMVG Phase II (loop via Sambangalou,
Sambangalou, Tambacounda)
Tambacounda)
OMVS KayesKayes-Tambacounda Line (Mali(Mali-Senegal)
NigeriaNigeria-NigerNiger-Benin, Burkina Faso (North Core)
Côte d’
d’IvoireIvoire-Mali
Côte d’
d’IvoireIvoire-GuineaGuinea-Mali
TOGO
Momé
Momé
Hagou
Hague
Kumasi
Kumasi
Obuasi
Akosombo
Akosombo
Obuasi
2009
CÔTE
D’IVOIRE
2008
Prestea
Prestea
BENIN
2009
Aboadze
Aboadze
2009
Sakété
Sakété
NIGERIA
2006
Cotonou
Cotonou
Lomé
Volta
Volta
Accra
Existing 161 kV
Existing
161330
kV kV line
Committed
330/161 kV 161
line kV
under
Committed
lineconstruction
Under dev’t330
330kVkVoperated at 161 kV
Proposed
330kV WAPP Coastal Transmission Backbone
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WAPP Zone A Priority Projects
West Africa Gas Pipeline (WAGP)
Interconnection in service
Committed interconnection
Under development
BENIN
GHANA
NIGER
NIGERIA
TOGO
MALI
BURKINA FASO Niamey
2008
Ouagadougou
B. Kebbi
BENIN
GUINEA
Bembèrèkè
Tem a
Regulating
& Metering
Station
Takoradi
Regulating
& Metering
Station
Cot onou Onshore Pipeline
Regulating
56 km x 30”
& Metering
Lom e
Regulating & Station
Alagbado Tee
Metering Station
Existing ELP
Pipeline
NIGERIA
Mainline
560 km x 18”/20”
TOGO
CÔTE
D’IVOIRE
GHANA
Lagos Beach
Compressor
Station
LIBERIA
330kV WAPP Northern Transmission Corridor (North Core)
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WAPP Zone B Priority Projects
OMVS
Dakar
WAPP Zone B Priority Projects
OMVS
MAURITANIA
SENEGAL
Felou
Kaolack
Felou
Gouina MALI
Gouina
Tambacounda
Tambacounda
THE GAMBIA
MAURITANIA
SENEGAL
Dakar
Kayes
Kaolack
Brikama
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Brikama
MALI
THE GAMBIA
Soma
Bamako
GUINEABISSAU
Bamako
Tanaf
Sambangalou
Sambangalou
GUINEABISSAU
Bissau
Mali
Bissau
Labe
GUINEA
Kaléta
“OMVS Power System”
- 2nd Generation Projects
Linsan
Canakry
Proposed Hydro
Substation
Transmission Line
Existing 225 kV
Under dev’t 225 kV
Boke
“OMVG Power System”
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Kaléta
Pita
Linsan
GUINEA
Proposed Hydro
Substation
Transmission Line
Existing 225 kV
Under dev’t 225 kV
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WAPP Zone B Priority Projects
Generation Projects
► Hydro
MAURITANIA
OMVS
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
ƒ
MALI
SENEGAL
Manantali
Ségou
NIGER
BURKINA
FASO
Bamako
GUINEA
BISSAU
BURKINA Ouagadougou
FASO
2008
Sikasso
Bobo
Dioulasso Han Bolgatanga
GUINEA
Kindia GUINEA
Bumbuna
CÔTE
D’IVOIRE
Laboa
Ferkéssedougou
CÔTE D’IVOIRE
SIERRA
Freetown LEONE
Nzérékoré
Man
Monrovia
Buchanan
Existing 225kV
LIBERIA
Abidjan
ƒ Nigeria –Okitipupa,
Okitipupa, Papalanto,
Papalanto, Ibom Power, Alaoji,
Alaoji, Geregu,
Geregu, Afam
VI
ƒ Ghana - Takoradi steam turbine, Tema CCGT
ƒ Senegal – Kahone
225kV under construction
Under dev’t 225kV
225kV WAPP Zone A/B “Hub”
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Regional energy development –
generation projects
►
NIGER
SENEGAL
GAMBIA
Te m
a
Lom
é
Co
ton
o
Lag u
os
Under construction
or financing closed
Under development
CÔTE
D’IVOIRE GHANA
rad
i
SIERRA
LEONE
LIBERIA
NIGERIA
TOGO
Realizing WAPP vision - the integration of the
presently fragmented national power systems into
a unified, sustainable regional electricity market –
requires a long and complex process which cannot
be fully predicted at this stage. We may, however,
attempt to anticipate the series of steps which need
to be taken for the creation of a regional electricity
market
Ta
ko
GUINEA
BURKINA
FASO
BENIN
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THE WAY FORWARD
MALI
GUINEA
BISSAU
2012
2012
► Thermal:
GHANA
LIBERIASanniquellie
:
OMVS - Félou
OMVG - Kalé
Kaléta
OMVS - Gouina
OMVG - Sambangalou
OMVG - Souapiti
Liberia - St.Paul River, Mt.Coffee
Sierra Leone – Bumbuna,
Bumbuna, Benkongor,
Benkongor, Yben
Guinea – Kassa
Nigeria - Zungeru,
Zungeru, Mambila,
Mambila, Lokoja,
Lokoja, Onitsha, Ikom,
Ikom, Gurara,
Gurara,
Makurdi,
Makurdi, Dyondyonga,
Dyondyonga, Gambou,
Gambou, Kandadji
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WHAT IS A
CREATION OF WAPP ELECTRICITY MARKET
MEDIUM TERM OBJECTIVE (2011)
“REGIONAL ELECTRICITY MARKET”
► Today,
there are cross-border exchanges of
electricity without competition among sellers, or
among buyers
Genco-transco
ƒ A market would require some kind of competition
ƒ A regional market is different from a national market
► We
Genco-transco
Production
recommend the following definition: a regional
Production
Transmission
Power
producer
Power
producer
Transmission
electricity market exists, when
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Producers are able to export energy on a competitive basis, or sell
sell to a
regional power exchange, and
System
operator
Distribution
Distribution companies and large end users are able to import energy
energy
on a competitive basis, or buy from a regional power exchange
Distribution
Distribution
All customers
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SUGGESTED PHASES FOR
MEDIUM TERM OBJECTIVE (2011)
► Phase
ƒ
ƒ
SUGGESTED STEPS FOR
MEDIUM TERM OBJECTIVE (2011)
► WAPP
1: Bilateral trading
Measurement of Net Transfer Capacity (NTC)
Unbundling of accounts for the regional network
► Should
the importing country claim 100 percent for its own
national power company, or gencogenco-transco?
transco?
► How much capacity is available for transit? When?
ƒ Separate the regional network from the national
network
2: Bilateral trading, with a few
transit flows
ƒ
member utilities should -
ƒ Establish clear rules on who has the right to use crosscrossborder interconnection capacity
► Phase
ƒ
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► Best solution: separate ownership
► Next best solution: separate accounts
Allocation of NTC on the basis of contract priority
Calculation of transmission tariffs for regional network
ƒ Agree on who will pay a transmission tariff for use of
the new 330kV and 225kV lines
► How
much capacity will be “reserved”
reserved” for IPP deals?
ƒ Develop a standard transmission service contract
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SUGGESTED PHASES FOR
LONG TERM OBJECTIVE (2020)
LONG TERM OBJECTIVE:
TRANSITION FROM REGULATED PRICES
TO WHOLESALE MARKET PRICES
Power
producer
Power
producer
Power
producer
Power exchange,
or trading system
managed by a Market Operator
Distribution
Distribution
Distribution
3: Merging of selected zones in the
regional network
► Phase
ƒ In each zone there is a regional transmission company
or the network is operated as one transmission
company
Market
operator
► Phase
System
operator
4: Start of the regional electricity market
ƒ Competition among buyers and sellers
ƒ Each market participant gets access to the whole WAPP
regional network by paying only one transmission tariff
ƒ Transit tariffs and export tariffs are eliminated
Eligible
customers
► Phase
Non-eligible customers
5: Start of a regional power exchange
ƒ Congestion management approach
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LONG TERM OBJECTIVE:
TRANSITION FROM REGULATED PRICES
TO WHOLESALE MARKET PRICES
►
Given a political choice between:
ƒ Low electricity prices set by the government, resulting in blackouts
blackouts and
shortages of generating capacity
ƒ High electricity prices set by a wellwell-designed market, with no blackouts and
no generating capacity shortages
► THE
FINAL OBJECTIVE
… many governments would opt for the 1st alternative
►
Electricity prices must not be too low, or power shortages will follow,
nor too high, or social unrest will follow. Finding a balance absorbs
absorbs
most political attention, causing to loose sight of the longerlonger-term
objective of creating a regional electricity market which, with help from
Adam Smith’
Smith’s invisible hand, will automatically find the correct price
levels.
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Lighting Up West Africa
THANK YOU
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