1 ► INFRASTRUCTURE INTEGRATION IN INFRASTRUCTURE INTEGRATION IN THE THE ► WAPP REGION WAPP REGION ► CEE-UT Workshop ► Abuja, May 1st & 2nd 2008
Jan 13, 2016
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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
Interconnected Countries 2007Interconnected Countries 2007
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
Interconnected Countries 2010Interconnected Countries 2010
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
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
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
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
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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
WAPP Zone B Priority ProjectsWAPP Zone B Priority Projects
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
WAPP Zone B Priority ProjectsWAPP Zone B Priority Projects
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