Benefits of Integrating into a Regional Power Pool

Transcription

1 EASTERN AFRICA POWER POOL Benefits of Integrating into a Regional Power Pool Ephrem Tesfaye Power Economist Eastern Africa Power Pool (EAPP) ETHIOPIA

2 The Eastern African Power Pool (EAPP) The Energy Ministers from seven Eastern Africa countries, namely: Burundi, DRC, Egypt, Ethiopia, Kenya, Rwanda and Sudan signed an Inter- Governmental Memorandum of Understanding (IGMOU) for the establishment of EAPP on February 24, 2005.

3 EAPP cont. The Signature of the IGMOU was followed by the signature of an Inter-Utility MOU by the CEOs/Managing Directors of the countries nine Power Utilities. This event heralded the formal launching of EAPP. Tanzania & Libya have consequently signed the relevant MOUs & became also member of EAPP.

4 EAPP cont. The Eastern Africa power pool was further adopted by Heads of State and Government at the 11th Summit of COMESA in Djibouti in November 2006 as a specialized institution of COMESA for electrical power for Eastern Africa.

5 EAPP Objectives The overall objective of EAPP is to facilitate regional integration and hence to realize sustainable growth and development. Specific objectives of EAPP include: Secure power supply for the EAPP member countries

6 EAPP Objectives Optimize energy resources availability in the EAPP Region by working out EAPP Regional investment schemes in Generation, Transmission and Distribution taking into account the socio-economic and environmental aspects.

7 EAPP Objectives cont. Coordinate and co-operate operate in the planning, development and operation of the power systems and minimize costs Increase power supply in the EAPP Region in order to increase access rate of the population to electricity

8 EAPP Objectives cont. Facilitate the development of a competitive electricity market in the EAPP Region based on cooperation among the countries

9 Ongoing Projects EU: Technical assistance and Capacity Building Project USAID: Powering Progress MFA Norway: Regional Coordination Centre and Regional Regulator Project UNDESA: Power Pool Study tours and trainings AfDB Regional Master Plan and Grid Code Study

10 Eastern Africa Master Plan Project Objectives Identify power generation and interconnection projects at master plan level to connect EAC and EAPP countries. Develop a common grid code for the EAPP and EAC countries to foster integrated development and operation of power systems in the region Regional capacity building

11 Eastern Africa Master Plan cont. Project Scope Geographic coverage: The project covers ten Eastern Africa countries: Burundi Djibouti DRC Egypt Ethiopia Kenya Time Horizon: Rwanda Sudan Tanzania Uganda Envisages a 25 year horizon ( 2013 to 2038); Detailed plan for the first five years.

12 Eastern Africa Master Plan cont. Harmonization A A tripartite agreement reached between EAC, SADC, and COMESA during the 2008 summit to harmonize Master Plans. EAPP is a specialized institution of COMESA for Power issues.

13 Eastern Africa Master Plan cont. EAPP encourages coordination and harmonization of national Master Plans with the EAPP Master Plan. E.g. Rwanda is already doing so.

14 Master Plan cont. Deliverables Power System Analysis, and Demand Forecast Economic and Financial Analysis A A Regional Generation Master Plan A A Regional Transmission Master Plan Investment Plan and Funding Sources A A Regional Grid Code Institutional Capacity Assessment Training and Workshops All the above have been completed and final report prepared

15 Eastern Africa Master Plan cont. Cost-Benefit Analysis The maximum benefit when coordination in the generation and interconnection expansion plans of the systems (RGP_RIP). The net benefit for this case amount to 32,451 MUS$ over the planning period (equivalent to 1,248 MUS$/year)

16 Eastern Africa Master Plan cont. Cost-Benefit Analysis The lowest benefit is for the case where there is no coordination in the generation expansion plan.

17 Eastern Africa Master Plan cont. Cost-Benefit Analysis cont. The second higher net benefit is for the case RGP_RIP_S2, in which the capital costs of all interconnection projects double in relation with the base case; for this case the net benefit amount 28,024 MUS$ (equivalent to 1,078 MUS$/year).

18 Eastern Africa Master Plan cont. Cost-Benefit Analysis cont. It is worth noting that the first level of regional coordination of interconnection projects potentially gives a sizable regional benefit (969 MUS$/year).

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21 From the EC financed study by Mercados It may be observed that in the second case Efficient Market, generation from expensive diesel is almost completely replaced by cheaper Hydro generated electricity. The savings over the plan period (25 years) on operational costs may be as much as up to $80bn. Again, this does not include investment cost savings.

22 FUTURE INTERCONNECTIONS.

23 EASTERN AFRICA MASTER PLAN Cont.. Interconnection Projects (NGP_RIP) Connecting Voltage (kv) Capacity (MW) Date Tanzania-Kenya Ethiopia-Kenya DC Ethiopia-Sudan x Egypt-Sudan DC Rusumo HPP Transmission system 2015

24 List of Identified Regional Generation Projects NGP_RIP Country Plant Name Type Eastern DRC Ruzizi III Hydro 145 Ruzizi IV Hydro 287 Mandaya Hydro 2000 Gibe III Hydro 1870 Ethiopia Border Hydro 1200 Gibe IV Hydro 1468 Karadobi Hydro 1600 Rwanda KivuI Methane 100 Kivu II Methane 200 Tanzania Stieglers Gorge (I, II, III) Hydro 1200 Inst. Cap (MW) Uganda Karuma Hydro 700 Ayago Hydro 550 Murchison Falls Hydro 750

25 * We hope the Pearl of Africa will also be the Pearl of EAPP * Uganda EASTERN AFRICA POWER POOL Thank you.