Transcript Document

►INFRASTRUCTURE
INTEGRATION IN THE
►WAPP REGION
►
CEE-UT Workshop
► Abuja, May 1st & 2nd 2008
1
Presentation Outline
► Present
situation
► WAPP organisation
► WAPP Master Plan
► WAPP Transmission Priority Projects
► WAPP Generation Priority Projects
► The way forward
2
► THE
PRESENT SITUATION
3
Africa, The Dark Continent
4
5
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.
6
ECOWAS Demand-Supply Balance
Met
54%
Unmet
46%
GWh
50,000
40,000
30,000
Met
Unmet
20,000
38,370
10,000
-
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7
► THE
WEST AFRICAN POWER POOL
8
ECOWAS ADDRESSES THE NEEDS
► To
address this situation of need, the Economic
Community of Western African States (ECOWAS)
created a new organization: the West African
Power Pool (WAPP)
9
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
10
WAPP ORGANIZATION
► Formed
January 2006 by decision of the Heads of
State and of Government
 Articles of Agreement approved
 WAPP = Specialised Institution of ECOWAS
 Headquarters Agreement with the Republic of Benin
► Articles
of Agreement
 Utility association
 Defines governance/operation structure and roles
 Operation funded by Members’ contributions
11
WAPP MISSION
► Improve
supply of reliable, stable, sustainable,
affordable electricity
► Develop integrated regional electricity market





Least cost development
Economies of scale
Access to primary energy resources
Increased coverage
Maximum benefits through trade
12
WAPP OBJECTIVES
► Facilitate
Infrastructure development
 Transmission interconnections
 Exploit primary energy resources (Natural Gas; Hydro)
► Capacity-Building
for Secretariat and Member
Utilities
► Develop harmonised Codes & standards to
facilitate operation, trade and development, e.g.
 Operation Manual (OSMP)
 Planning & design criteria
► Develop
and improve energy Trading
 System monitoring & coordination
 Standard agreements (trading, wheeling, power purchase)
 Electricity market (rules, governance, metering, settlement)
13
THE CHALLENGE:
Integrating Fragmented National Power Systems
MALI
SENEGAL
GAMBIA
NIGER
GUINEA
GUINEA
BISSAU
BURKINA FASO
BENIN
SIERRA
LEONE
LIBERIA
NIGERIA
TOGO
CÔTE
D’IVOIRE
GHANA
14
► WAPP
MASTER PLAN
15
Master Plan for Infrastructure Development
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
16
Master Plan
for Infrastructure Development
Revised in 2004, the Master Plan
 Defines the long-term vision and implementation
strategy for the regional transmission system
 Identifies the capital costs of the regional
transmission investment program over the next 17
years (2020 horizon)
 Identifies requirements for the stability, reliability and
operability of the regional systems
17
Investment Requirements
Overall Generation and Transmission
Overall Generation and Transmission Investment Requirements
Investment
Requirements
(2004 USD millions)
6 000
2004 USD millions
5 000
9 billion USD by 2011
(2004 prices)
4 000
3 000
2 000
1 000
0
2004-7
generation
2008-11
WAPP projects
2012-15
2016-20
transmission reinforcement
N:\COST ESTIMATES FOR IMPLEMENTATION
18
WAPP IMPLEMENTATION STRATEGY
 Coastal Transmission Backbone Subprogram (Cote
d’Ivoire, Ghana, Benin/Togo, Nigeria).
 Inter-zonal Transmission Hub Sub-program (Burkina Faso,
OMVS via Mali, LSG via Cote d’Ivoire).
 North-core Transmission Sub-program (Nigeria, Niger,
Burkina Faso, Benin).
 OMVG/OMVS Power System Development Subprogram
(The Gambia, Guinea, Guinea Bissau, Mali, Senegal)
 Cote d’Ivoire-Liberia-Sierra Leone-Guinea Power
System Re-development Subprogram (Cote d’Ivoire, Liberia,
Sierra Leone, Guinea).
19
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
MALI
SENEGAL
NIGER
GAMBIA
GUINEA
BISSAU
BURKINA FASO
NIGERIA
GUINEA
BENIN
SIERRA
LEONE
CÔTE
D’IVOIRE
TOGO
GHANA
LIBERIA
Implementation Road Map
20
Interconnected Countries 2006
MALI
SENEGAL
NIGER
GAMBIA
GUINEA
GUINEA
BISSAU
SIERRA
LEONE
BURKINA
FASO
BENIN
NIGERIA
TOGO
CÔTE
D’IVOIRE GHANA
LIBERIA
21
Interconnected Countries 2007
MALI
NIGER
SENEGAL
GAMBIA
GUINEA
BISSAU
BURKINA
FASO
BENIN
GUINEA
NIGERIA
TOGO
CÔTE
D’IVOIRE GHANA
SIERRA
LEONE
LIBERIA
WAPP 330 kV Coastal
Transmission Backbone
West Africa Gas Pipeline
(WAGP) Project
22
Interconnected Countries 2010
WAPP 225 kV WAPP
Zone A/B “Hub”
MALI
NIGER
SENEGAL
GAMBIA
GUINEA
BISSAU
GUINEA
SIERRA
LEONE
BURKINA
FASO
BENIN
NIGERIA
TOGO
CÔTE
D’IVOIRE GHANA
LIBERIA
23
Interconnected Countries 2011-12
WAPP 225 kV OMVG Ph.I
MALI
NIGER
SENEGAL
GAMBIA
GUINEA
BISSAU
BURKINA
FASO
BENIN
GUINEA
SIERRA
LEONE
LIBERIA
NIGERIA
TOGO
CÔTE
D’IVOIRE GHANA
WAPP 225 kV LSG
Interconnection
24
► WAPP
PRIORITY PROJECTS
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Transmission Projects to 2011
Ikeja West-Sakété (Nigeria-Benin)
► Bobo Dioulasso-Ouagadougou (Burkina Faso)
► Aboadze-Volta (Ghana)
► Volta-Momé Hagou-Sakété (Ghana-Togo-Benin)
► Aboadze-Prestea-Kumasi (Ghana)
► Bolgatanga-Ouagadougou (Ghana- Burkina Faso)
► Han-Bobo Dioulasso-Sikasso-Bamako
(Ghana-Burkina Faso-Mali)
► OMVG (Guinea-Guinea-Bissau-The Gambia-Senegal)
►
2007
2008
2008
2009
2009
2010
2010
2011
26
Transmission Projects 2011-20
Côte d’Ivoire-Liberia/Guinée Forestière-Sierra LeoneGuinée Maritime
► OMVG Phase II (loop via Sambangalou, Tambacounda)
► OMVS Kayes-Tambacounda Line (Mali-Senegal)
► Nigeria-Niger-Benin, Burkina Faso (North Core)
► Côte d’Ivoire-Mali
► Côte d’Ivoire-Guinea-Mali
►
27
WAPP Zone A Priority Projects
GHANA
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
Proposed
Under
dev’t330
330kVkVoperated at 161 kV
330kV WAPP Coastal Transmission Backbone
28
WAPP Zone A Priority Projects
Interconnection in service
Committed interconnection
Under development
NIGER
MALI
BURKINA FASO Niamey
2008
Ouagadougou
B. Kebbi
BENIN
GUINEA
Bembèrèkè
NIGERIA
TOGO
CÔTE
D’IVOIRE
GHANA
LIBERIA
330kV WAPP Northern Transmission Corridor (North Core)
29
West Africa Gas Pipeline (WAGP)
BENIN
TOGO
GHANA
Takoradi
Regulating
& Metering
Station
NIGERIA
Tem a
Regulating
& Metering
Station
Cot onou Onshore Pipeline
Regulating
56 km x 30”
& Metering
Lome
Alagbado Tee
Regulating & Station
Metering Station
Existing ELP
Pipeline
Mainline
560 km x 18”/20”
Lagos Beach
Compressor
Station
30
WAPP Zone B Priority Projects
OMVS
Dakar
MAURITANIA
SENEGAL
Kayes
Kaolack
Brikama
Felou
Gouina MALI
Tambacounda
THE GAMBIA
Bamako
Sambangalou
GUINEABISSAU
Bissau
GUINEA
Kaléta
“OMVS Power System”
- 2nd Generation Projects
Linsan
Canakry
Proposed Hydro
Substation
Transmission Line
Existing 225 kV
Under dev’t 225 kV
31
WAPP Zone B Priority Projects
OMVS
MAURITANIA
SENEGAL
Dakar
Felou
Kaolack
Gouina
Tambacounda
Brikama
MALI
THE GAMBIA
Soma
Bamako
Tanaf
Sambangalou
GUINEABISSAU
Mali
Bissau
Labe
Boke
“OMVG Power System”
Kaléta
Pita
Linsan
GUINEA
Proposed Hydro
Substation
Transmission Line
Existing 225 kV
Under dev’t 225 kV
32
WAPP Zone B Priority Projects
MAURITANIA
OMVS
MALI
SENEGAL
Manantali
Ségou
BURKINA
FASO
Bamako
GUINEA
BISSAU
BURKINA
2008 FASO
Ouagadougou
Sikasso
Bobo
Dioulasso Han Bolgatanga
GUINEA
Kindia GUINEA
Bumbuna
CÔTE
D’IVOIRE
Laboa
SIERRA
Freetown LEONE
Ferkéssedougou
CÔTE D’IVOIRE
Nzérékoré
Man
LIBERIASanniquellie
GHANA
Monrovia
Buchanan
Existing 225kV
LIBERIA
Abidjan
225kV WAPP Zone A/B “Hub”
225kV under construction
Under dev’t 225kV
33
Generation Projects
► Hydro









:
OMVS - Félou
OMVG - Kaléta
OMVS - Gouina
OMVG - Sambangalou
OMVG - Souapiti
Liberia - St.Paul River, Mt.Coffee
Sierra Leone – Bumbuna, Benkongor, Yben
Guinea – Kassa
Nigeria - Zungeru, Mambila, Lokoja, Onitsha, Ikom, Gurara,
Makurdi, Dyondyonga, Gambou, Kandadji
2012
2012
► Thermal:
 Nigeria –Okitipupa, Papalanto, Ibom Power, Alaoji, Geregu, Afam
VI
 Ghana - Takoradi steam turbine, Tema CCGT
 Senegal – Kahone
34
Regional energy development –
generation projects
MALI
NIGER
SENEGAL
GAMBIA
GUINEA
BISSAU
GUINEA
SIERRA
LEONE
LIBERIA
Under construction
or financing closed
Under development
BURKINA
FASO
BENIN
NIGERIA
TOGO
CÔTE
D’IVOIRE GHANA
35
THE WAY FORWARD
►
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
36
WHAT IS A
“REGIONAL ELECTRICITY MARKET”
► Today,
there are cross-border exchanges of
electricity without competition among sellers, or
among buyers
 A market would require some kind of competition
 A regional market is different from a national market
recommend the following definition: a regional
electricity market exists, when
► We

Producers are able to export energy on a competitive basis, or sell to a
regional power exchange, and

Distribution companies and large end users are able to import energy
on a competitive basis, or buy from a regional power exchange
37
CREATION OF WAPP ELECTRICITY MARKET
MEDIUM TERM OBJECTIVE (2011)
Genco-transco
Genco-transco
Production
Production
Transmission
Power
producer
Power
producer
Transmission
System
operator
Distribution
Distribution
Distribution
All customers
38
SUGGESTED PHASES FOR
MEDIUM TERM OBJECTIVE (2011)
► Phase


1: Bilateral trading
Measurement of Net Transfer Capacity (NTC)
Unbundling of accounts for the regional network
► Phase
2: Bilateral trading, with a few
transit flows
Allocation of NTC on the basis of contract priority
 Calculation of transmission tariffs for regional network

39
SUGGESTED STEPS FOR
MEDIUM TERM OBJECTIVE (2011)
► WAPP
member utilities should -
 Establish clear rules on who has the right to use crossborder interconnection capacity
► Should
the importing country claim 100 percent for its own
national power company, or genco-transco?
► How much capacity is available for transit? When?
 Separate the regional network from the national
network
► Best
solution: separate ownership
► Next best solution: separate accounts
 Agree on who will pay a transmission tariff for use of
the new 330kV and 225kV lines
► How
much capacity will be “reserved” for IPP deals?
 Develop a standard transmission service contract
40
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
Market
operator
System
operator
Eligible
customers
Non-eligible customers
41
SUGGESTED PHASES FOR
LONG TERM OBJECTIVE (2020)
3: Merging of selected zones in the
regional network
► Phase
 In each zone there is a regional transmission company
or the network is operated as one transmission
company
► Phase
4: Start of the regional electricity market
 Competition among buyers and sellers
 Each market participant gets access to the whole WAPP
regional network by paying only one transmission tariff
 Transit tariffs and export tariffs are eliminated
► Phase
5: Start of a regional power exchange
 Congestion management approach
42
LONG TERM OBJECTIVE:
TRANSITION FROM REGULATED PRICES
TO WHOLESALE MARKET PRICES
►
Given a political choice between:
 Low electricity prices set by the government, resulting in blackouts and
shortages of generating capacity
 High electricity prices set by a well-designed market, with no blackouts and
no generating capacity shortages
… 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
most political attention, causing to loose sight of the longer-term
objective of creating a regional electricity market which, with help from
Adam Smith’s invisible hand, will automatically find the correct price
levels.
43
► THE
FINAL OBJECTIVE
44
Lighting Up West Africa
45
THANK YOU
46