DEVELOPMENT. Challenges and Opportunities. 9/5/2008 eapic 2008 Nairobi 1

Transcription

1 REGIONAL DEVELOPMENT INFRASTRUCTURE Challenges and Opportunities 9/5/2008 eapic 2008 Nairobi 1

2 CONTENTS Introduction Regional Cooperation Generation Resources Existing and Future Power Systems Implementation Strategies Challenges and Opportunities Way Forward 9/5/2008 eapic 2008 Nairobi 2

3 INTRODUCTION The region has a big population (about 100m) Electricity accessibility is very low Demand growth is 10-12% average Inadequate electricity member states suffering from load shedding. 9/5/2008 eapic 2008 Nairobi 3

4 BENEFITS OF REGIONAL INTERCONNECTIONS To improve security of supply, especially in drought years. Seasonal diversity and load diversity To improve system reliability Sharing of operating reserve To reduce planning margins which lead to lower generation investments Co-ordination and co-operation in the planning, development and operation of a competitive regional electricity market based on the requirements of Member States 9/5/2008 eapic 2008 Nairobi 4

5 REGIONAL COOPERATION - ADVANTAGES To provide reliable and economical electricity supply to the consumers in member states. To provide efficient utilisation of natural resources in an environmentally sustainable manner To provide co-ordination and co-operation in the planning and operation of the various systems to minimise running and investment costs. 9/5/2008 eapic 2008 Nairobi 5

6 GENERATION RESOURCES (to be developed) PLANT LOCATION MW Kalagala Uganda 450 Karuma Uganda 200 Ayago South, North Uganda 234, 315 Murchison Falls Uganda 420 Masindi I, II Uganda 360, 720 Mutonga Kenya 60 Low Grand Kenya 140 Ewaso Ngiro Kenya 220 9/5/2008 eapic 2008 Nairobi 6

7 GENERATION RESOURCES contd. PLANT LOCATION MW Masigira Tanzania 118 Rumakali Tanzania 222 Ruhudji Tanzania 358 Mpanga Tanzania 144 Stiegler s Gorge I Tanzania 300 Stiegler s Gorge II Tanzania 900 Stiegler s Gorge III Tanzania /5/2008 eapic 2008 Nairobi 7

8 GENERATION RESOURCES (others) Geothermal Wind Mini Hydro Solar Nuclear 9/5/2008 eapic 2008 Nairobi 8

9 HYDRO GENERATION Renewable and clean Lowest unit costs; minimum O & M costs Water management - many stakeholders High-risk weather conditions Longer lead times (7-8 years) Detailed feasibility studies Long construction period 9/5/2008 eapic 2008 Nairobi 9

10 THERMAL GENERATION Shorter lead time Fuel costs high (gas, coal and liquid fuel) Higher O & M costs Higher environmental risks NOX and SOX 9/5/2008 eapic 2008 Nairobi 10

11 WIND GENERATION Research on wind speeds Capital costs Minimum O & M costs No firm energy Environmental high risk for birds 9/5/2008 eapic 2008 Nairobi 11

12 GEOTHERMAL GENERATION Rift Valley - source Well developed in Kenya Renewable Competitive O & M costs Environmental mitigation 9/5/2008 eapic 2008 Nairobi 12

13 NUCLEAR GENERATION New to the region Alternative to thermal Cost of energy very competitive Minimum O & M costs Environmental waste disposal High safety standards 9/5/2008 eapic 2008 Nairobi 13

14 EXISTINGEAC EAC REGIONAL POWER SYSTEMS Kenya and Uganda power grids are interconnected through a 132kV double circuit line Tanzania and Uganda have a crossborder supply through a 132kV line Kenya and Tanzania have a crossborder supply through a 33kV line Rwanda and Burundi power grids are interconnected through a 70 kv line 9/5/2008 eapic 2008 Nairobi 14

15 EAC REGIONAL POWER SYSTEMS FUTURE PLANS A regional power master plan has been prepared for the EAC countries to optimise development and grid operations Tanzania and Kenya plan to be interconnected through a 330kV line (ZTK Arusha-Nairobi) Rwanda, Tanzania and Burundi are planned to be interconnected through Rusumo Falls Project (NBI) Rwanda and Burundi plan a 132kV interconnection (NBI) Kenya-Uganda 220 kv interconnection (NBI) 220kV line Rusumo Kyaka to Uganda A 220kV interconnection Masaka Mutukula Mwanza Musoma Olkaria (Lake Victoria ring) 9/5/2008 eapic 2008 Nairobi 15

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17 FORMATION OF REGIONAL POWER POOLS East African Community Power Pool (EACPP) Eastern African Power Pool (EAPP) Southern African Power Pool (SAPP) 9/5/2008 eapic 2008 Nairobi 17

18 IMPLEMENTATION STRATEGIES The following Implementation Strategies can be adopted: A Public-Private Partnership, through a project company with majority public share-holding. A BOOT with assets to be transferred to the governments at the end of the concession. A Special Purpose Vehicle established for interconnectors (a Power Transporter and not a Power Trader). 9/5/2008 eapic 2008 Nairobi 18

19 Challenges and opportunities for regional interconnections Policy and legislation to attract capital Regulatory framework Modelled implementation structures Cost-reflective tariffs Fund mobilisation Commitment to joint project development (interconnections & generation resources) 9/5/2008 eapic 2008 Nairobi 19

20 WAY FORWARD Consider developing proposed interconnections and generation resources as regional projects. Team up together to mobilise funds to implement the earmarked projects for the benefit / development of the EAC region. Utilise the opportunity of private capital market since the investments needed are capital intensive. 9/5/2008 eapic 2008 Nairobi 20

21 THANK YOU FOR LISTENING 9/5/2008 eapic 2008 Nairobi 21