energy for africa draft study PIDA Study: Phase I Volumes

NEPAD African Union AfDB
C1354 - March 2011
Ref: ONRI.1/PIDA/2010/04
in consortium with
Study on Programme for Infrastructure
Development in Africa (PIDA)
Phase I Report
DRAFT
 PHASE I
ENERGY SECTOR

Study on Programme for Infrastructure Development in Africa (PIDA)
Phase 1
SOFRECO Led Consortium : SOFRECO –MWH – NATHAN – SOFRECOM – SYSTRA – ASCON - CABIRA
PIDA Study: Phase I Volumes
Energy Sector
Introduction to PIDA
Phase 1 Overview
Transport Sector
TWRM Sector
ICT Sector
Annexes

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SOFRECO Led Consortium : SOFRECO –MWH – NATHAN – SOFRECOM – SYSTRA – ASCON - CABIRA
FOREWORD
The PHASE I work was carried out by Jean François BAUER (Program Leader), Ananda
COVINDASSAMY (Energy Leader), Bernard CHATELIN (Transport Leader), Olivier COGELS
(Transboundary Water Resources Leader), Claude de JACQUELOT (ICT Leader) with the support
of their respective teams and coordinated by Hichame SELMAOUI (Project Director).
It has taken place in good conditions with the constant support form the PIDA stakeholders:
African Union Commission (AUC), NEPAD Planning and Coordinating Agency (NPCA), African
Development Bank (AfDB), the Regional Economic Communities (RECs) and the Technical
Institutions (Lake and River Basins Organisations –L/RBOs- and Power Pools).
The Consultant would like to express their most sincere thanks to all those who have provided
their precious time and advice during this part of the work.
This report is the DRAFT report on Phase 1 of the PIDA Study. The interaction with the
stakeholders during the forthcoming meetings will be the opportunity to validate the diagnosis
and the assumptions used in modelling.
The PIDA Study is a long term planning exercise. It has been carried on the basis of assumptions,
namely that in the coming years the major policy weaknesses in the sectors will be resolved.
In the Transport sector, it is assumed that all the corridors would have reach full efficiency
through major changes, including:
 The well documented and generally accepted trade facilitation measures are successfully
implemented;
 The credit worthiness of the railways is restored;
 The Yamoussoukro decision is implemented continent wide.
In the Energy sector, the primary assumption concerns the restoration of the credit worthiness of
the utilities by the return of the payment discipline in the private and the public sector.
In the Transboundary Water sector, it is assumed that the African countries who share
international rivers, lakes and aquifers will have the required political will to mandate and support
their basin organizations for the preparation, implementation and operation of optimal joint
investments in a shared benefit approach.
In the ICT sector, the main assumptions are the end of monopoly situation on terrestrial
infrastructure and on international gateways, with “right of way” provisions for landlocked
countries to reach landing stations.
If these policy changes are effective, it is the considerate opinion of the Consultant that the
projections presented in this report paint a plausible future for Africa and its regional
infrastructure.

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Phase 1
ENERGY Sector - Report I : Policies
SOFRECO Led Consortium : SOFRECO –MWH – NATHAN – SOFRECOM – SYSTRA – ASCON - CABIRA 1
PART I: POLICIES

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2 SOFRECO Led Consortium : SOFRECO –MWH –NATHAN –SOFRECOM –SYSTRA –ASCON -CABIRA
Table of Contents
1. OBJECTIVE AND APPROACH..............................................................................3
1.1 Objectives ...................................................................................................................................................................................... 3
1.2 Approach........................................................................................................................................................................................ 3
2. SCOPE OF EXISTING CONTINENTAL AND REGIONAL POLICIES ..............5
2.1 Africa’s Energy Policy-Making Organizations..........................................................................................................5
2.2 Continental Policies................................................................................................................................................................. 6
2.2.1 AUC’s Policy Coordination Role......................................................................................................................7
2.2.2 Large Scale Hydro Development.................................................................................................................11
2.2.3 New and Renewable Energy Sources......................................................................................................12
2.3 Regional Policies......................................................................................................................................................................13
2.3.1 Objectives ...................................................................................................................................................................13
2.3.2 Regional Power Pools.........................................................................................................................................13
2.3.3 Regional Gas Integration.................................................................................................................................23
2.3.4 Regional Cooperation in Petroleum Product Supplies................................................................25
2.4 Policy coherence table .......................................................................................................................................................25
2.4.1 Coverage of Regional Electricity Policies.............................................................................................25
2.4.2 Areas not addressed by Regional Energy Policies........................................................................28
3. STATEMENT CONCERNING THE LEVEL OF ACHIEVEMENT OF POLICY
OBJECTIVES .........................................................................................................29
3.1 Methodology of evaluation...............................................................................................................................................29
3.1.1 Specific Policy Indicators ................................................................................................................................29
3.1.2 Policy Impact Indicators.................................................................................................................................. 30
3.2 Level of achievement by policy.................................................................................................................................... 30
3.2.1 Level of Achievement of Continental Policy Objectives ..............................................................31
3.2.2 Level of Achievement of Regional Policy Objectives ...................................................................32
3.2.3 Level of Achievement of Regional Gas Integration Objectives .............................................35
3.3 Policy Achievement Table.................................................................................................................................................36
4. CAUSAL ANALYSIS.............................................................................................38
4.1 Analysis of Legal and Regulatory Policies.............................................................................................................38
4.2 Analysis of Planning, Operational and Commercial Policies.................................................................... 40
4.3 Regional Electricity Integration: Causal Analysis Synthesis........................................................................41
4.3.1 Energy Security Concerns ...............................................................................................................................41
4.3.2 Regional Autonomy versus National Autonomy ...............................................................................42
4.3.3 Staffing and Funding Weaknesses in Regional and Continental Institutions ..............42
4.3.4 Constraints to Mobilizing Financial Resources.................................................................................42
4.4 Regional Gas Integration: Causal Analysis............................................................................................................43

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1. OBJECTIVE AND APPROACH
1.1 Objectives
The basic objective of the review is to assess the effectiveness of continental and regional
energy policies in supporting the integration of energy infrastructure across the African
continent.
The review will focus on the effectiveness of different policy initiatives in supporting the
integration of Africa’s electricity infrastructure
It will also include an assessment of policies aimed at bringing about the integration of the
continent’s natural gas infrastructure. 1
.
1.2 Approach
The proposed analytical approach was described in Section 3 of the Inception Report of July
2010. It envisaged a number of steps in assessing the adequacy of existing continental and
regional policies against the primary goal of promoting regional energy trade.
The first step involved a review of the scope of existing continental and regional energy
policies-as of December 2010- in each of the five regions of Africa.
This information was to be obtained from three main sources:
 Visiting the websites of the main continental (AUC) and regional (RECs and Power Pools)
institutions responsible for formulating energy policies;
 Reviewing the main presentations and/or protocols on regional energy policies agreed
by the Conference of African Energy Ministers or between key donors such as the ADB
or EU,
 Field visits to the Infrastructure and Energy Department of the AUC as well as to a
selective number of Regional Economic Communities (RECs) and Power Pools.
The second step involved a review of the extent to which the policy objectives in each region
have been achieved, in particular their effectiveness in increasing regional energy trade. This
review involved a comparative analysis of existing regional electricity legislation in each of the
five regions in Africa against benchmarks generally agreed as essential for establishing
successfully operating power pools in other regions of the world.
The analysis focused in particular on policy gaps in the existing legislation of different regions
and whether such policy gaps were deterring regional electricity trade.
The third, and final, step of the approach focused on the limiting factors that are impeding
achievement of regional energy integration. This review focused on several different factors-
including, inter alia, legislative, regulatory, grid code harmonization, financial solvency of
1
Objective listed in the Maputo Declaration of 2010

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national utilities, and energy security concerns in individual countries- that were judged to be
impeding further regional energy integration in specific regions.

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2. SCOPE OF EXISTING
CONTINENTAL AND REGIONAL
POLICIES
2.1 Africa’s Energy Policy-Making Organizations
The African Union Commission (AUC) is the Secretariat of the African Union (AU) and the
principal organization for the promotion of socioeconomic integration across the continent.
Within the AUC organization, the Infrastructure and Energy (IE) department is the entity
responsible for carrying out the AUC’s objectives in energy. The specialized institutions in
energy under the AUC i.e. AFREC, AFUR and AFSEC, are intended to be the main instruments
for facilitating the energy objectives of the AUC while the United Nations Economic
Commission (ECA) and the African Development Bank (ADB) and the NEPAD Secretariats
provide advice and support, respectively, to the AUC in its policy coordination activities.
In the area of policy-making, the AUC has responsibility for defining continental-wide polices
and strategies on infrastructure development2
.
The role of the Regional Economic Communities (RECs) in the energy sector is to promote
cooperation between member states in order to develop integrated and cost effective energy
infrastructure in support of regional economic development, and particularly regional trade.
The RECs have a primary responsibility for developing a policy and planning framework to
achieve the goal of regional cooperation in energy. A key component of the RECs’ strategy is
establishing regional power pools to help reduce the cost of energy supply while improving its
reliability and security.. The regional power pools have primary responsibility for coordinating,
harmonizing, and enforcing the operational rules and standards needed to achieve this goal.
The organizational relationship between these different entities is shown in Figure 1.1 below.
 AFUR, African Forum for Utility Regulators
 AFREC, African Energy Commission (AFREC)
 AFSEC, African Standards Electro-Technical Commission
 ECA, Economic Commission for Africa
 NEPAD, New Partnership for Africa’s Development
2
Coordination Mechanism for the Development of Infrastructure in Africa, Department of Infrastructure and Energy,
African Union, October 2007

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2.2 Continental Policies
The main Continental Policy Objectives have been articulated in different conferences and
assemblies of the African Union (AU) since 2000 and reaffirmed recently by Africa’s Ministers in
charge of energy in the Maputo Declaration of November 5, 2010.
These objectives are to develop efficient, reliable, cost effective, and environmentally friendly
infrastructure for the physical integration of the continent and to enhance access to modern
energy services for the majority of the African population. These objectives would be achieved
by
 Developing major regional and continental hydroelectric projects;
 Implementing high capacity oil refineries and oil pipeline projects; and
 Developing renewable energy resources.
The main objectives and policy initiatives are summarized below:

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OBJECTIVES STRATEGIC POLICY INITIATIVES
Ensure energy security for
economic and social
development
 Through developing fully Africa’s energy resource potential
– in hydropower, petroleum, geothermal, coal, and
renewable energy
Achieve energy integration by
increasing regional and
continental energy trade
 Through fostering regional and continental cooperation and
by highlighting the importance of regional projects,
especially electricity interconnections
Lower the cost of energy to
improve access to basic energy
services for Africa’s population
 Through diversifying the energy mix and by pooling national
energy resources so as to deliver energy production at
affordable costs
Create a conducive climate for
direct investment
 Through harmonizing legal and regulatory frameworks for
energy trade
Reduce Greenhouse Gas (GHG)
emissions and address climate
change issues
 Through promoting the development of renewable energy,
in particular solar energy
2.2.1 AUC’s Policy Coordination Role
The Constitutive Act of the African Union of July 2000 stipulates in Article 13 that the AUC
should ‘coordinate policies and take decisions in the fields of energy, industry and mineral
resources in view of their importance for Africa’s development’.
AUC sees its role, therefore, as a coordinator and facilitator of regional energy integration
whose main responsibilities are to harmonize regional energy policies across the African
continent, point out discrepancies, and identify policy bottlenecks. The importance of AUC’s
coordination role needs to be seen in the context of the report by UNECA3
, which identifies
the lack of coordination between the RECs as an impediment to continental integration since
they confine their activities to their own regions, without interaction with other regional areas.
Two guiding principles govern the modus operandi of the AUC in its policy coordination role 4
.
The first guiding principle is derived from the Constitutive Act of the African Union which is
based on solidarity i.e. to “achieve greater unity and solidarity between African countries and
the peoples of Africa”, which implies a sharing of resources.
The second guiding principle is that of subsidiarity between the African Union Commission and
other regional and continental institutions in working towards the continent’s development and
integration, particularly in regard to the Regional Economic Communities, which remain the
pillars of this integration process.
Within the framework of these guiding principles, the African Union Commission has taken the
following policy initiatives:
Continental Policy on Electrical Energy for Africa
 Regional economic integration and the development of integration infrastructure were
identified as two priority areas for action and provision was made for the elaboration of a
continental policy on electrical energy5;
3
Report of the Expert Group Meeting on the Ten Year Capacity Building Programme for the African Union, November
2-3, 2010, Addis Ababa
4
Coordination Mechanism for the Development of Infrastructure in Africa, Department of Infrastructure and Energy,
African Union, October 2007
5
AUC Strategic Plan, 2004-2007, (Strategic Plan of the Commission, Volume 2);

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 Preparation of a report entitled “Common Vision and Strategic Guidelines for a Continental
policy relating to the Electrical Energy Sector”, with the following recommendations:
(i) to work together to develop Africa’s resources, especially hydropower;
(ii) to establish a Coordination Commission for the development of major, integrative,
hydroelectric projects6
;
Guideline Document for Continental Policy in the Field of Oil and Gas7
The main objective was to develop an African Policy of Cooperation and Solidarity in terms of
Hydrocarbons while the main decision taken was to establish an African Petroleum Fund
(APF)to assist African oil importing countries.
The issues that would be addressed in developing this policy included:
 Proposing strategies for cooperation between African producing and importing nations;
 Defining strategies to develop the exchange of oil products between African countries;
 Making recommendations on major infrastructure projects for the storage, transport and
distribution of oil products; and
 Defining the role to be played by major oil companies operating on the African continent as
well as by IFIs and donors.
Policy Objectives on New and Renewable Sources of Energy8
The main action agreed was to establish a high level, ministerial policy advocacy group to lead
the implementation of the Plan of Action that was outlined in the earlier Dakar Conference,
April 16-18, 2008, “Making Renewable Energy Markets Work for Africa”.
6
1st African Union Conference of Ministers responsible for Electrical Energy, March 20-24, 2006, Addis Ababa,
Ethiopia;
7
First African Union Conference, Ministers responsible for Hydrocarbons, December 11-15, 2006, Cairo, Egypt
8
African Union Assembly, 12th Ordinary Session, February 1-3, 2009, Addis Ababa, Ethiopia, ‘Infrastructure Development
in Africa

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Continental Policy Log Frame
OBJECTIVES
Socio-economic
STRATEGIC POLICY
INITIATIVES
EXPECTED
RESULTS
INDICATORS RISKS
and
ASSUMPTIONS
SOURCES OF
VERIFICATION
A. Sustain economic growth of
6% p.a.
B. Reduce poverty 50% and
facilitate Africa’s integration
into global economy
Sector Specific
1. Ensure energy security
 Develop fully
Africa’s resource
potential – esp.
large-scale and
integrating
regional and
continental
 hydro schemes
 Development of
hydroelectric hubs
 A.West Africa-Niger/Senegal
rivers
 B.Central Africa-
Inga/Congo river
C.Southern Africa -
Mozambique/Zambezi
 D.East Africa-Ethiopia/Nile
 Coordination
Commission for major
hydro is established
 ncreased electric.
production from Inga
or reg.hub
 Inter regional power
purchase agreements
signed
 Interconnection of
reg. power pools
 HIGH Risk. Project
management weak
and no political
consensus to
strengthen it. Also, first
new production
increment from Inga
may not be for export
to SADC.
Key Assumption:
 SNEL management
team in place 2012
 Annual progress
reports on Inga
production and other
large hydro schemes
as provided by
donors (ADB, IDA)
2. Achieve regional integration in
energy
 Foster sub-
regional, regional
and continental
cooperation in
energy through
pooling of
resources
 Increased regional
electricity trade;
 West Africa Gas Pipeline is
operational
 Number of new
regional
interconnections in
power and gas
 Share of power
traded in each REC
SUBSTANTIAL Risk.
Key Assumptions
 In SADC, national
agencies willing to
cede planning
decisions to regions;
 In ECOWAS, political
stability in key
member nations
 Regional power pool
annual reports

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OBJECTIVES
Socio-economic
STRATEGIC POLICY
INITIATIVES
EXPECTED
RESULTS
INDICATORS RISKS
and
ASSUMPTIONS
SOURCES OF
VERIFICATION
3. Lower the cost of energy in
order to improve access for
the majority of the African
people
 Promote efficient
use of energy
infrastructure by
diversifying the
continent’s energy
supply
 Development of Africa’s
large hydro resources to
displace higher cost oil
imports
 umber of new hydro
sites developed;
 Share of hydro in
Africa’s power
generation
SUBSTANTIAL Risk
Key Assumptions:
 Adequate project
management and
financing mobilization
capacity
 Regional power pools
and donor reports
4. Promote good governance
and harmonize regulations
 Strengthen and
harmonize legal
and regulatory
frameworks
 Direct private investment in
regional electricity
 Total PSI investment
in regional electricity
trade
SUBSTANTIAL Risk
 Uneven regional
progress to date
Key Assumptions:
 SADC and ECOWAS
regions successful in
attracting PSI for
regional projects and
sector
creditworthiness
established in most
countries
 SAPP and WAPP
annual reports
5. Reduce GHG emissions
 Promote
renewable energy
potential,
especially hydro,
geothermal and
Sahara solar
energy
 Finalize studies on
development solar
potential of Sahara;
 Extend studies to other
areas of African
continent;(iii) Launch
geothermal risk mitigation
fund
 Establish ministerial
advocacy group;
 annual investment in
renewable energy as
% of investment
derived from fossil
fuel sources
HIGH Risk.
 Progress in Africa in
developing renewable
energy slow
Key Assumptions:
 Private investors can
be mobilized for large
hydro schemes and
solar energy plants
 AU/COMELEC
renewable energy
monitoring data

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2.2.2 Large Scale Hydro Development
Exploiting the large, untapped hydropower potential of the African continent is the cornerstone
of the AU’s strategy to provide low cost electricity to the large numbers of the continent’s
population still without access to basic energy services as well as to enhance energy security.
The strategy envisages the development of four main hydroelectric hubs (see MAP):
 West Africa on the Niger (and Senegal) rivers;
 Central Africa on the Congo river, in particular the Grand Inga scheme;
 Eastern Africa, the Nile river basin development; and
 Southern Africa, the Zambezi river basin development.
A program of integrated development of hydro resources and electricity connections is
envisaged to minimize transaction costs, attract investment, and promote energy security9. In
support of this concept, as noted in Section 2.2, the first Conference of African Ministers
responsible for Electrical Energy10committed itself to support the integrated development of
the continent’s power potential through the following actions:
 Expedite establishment of a ‘Coordination Commission’ for the development of major
integrating hydro power projects;
 Expedite the integrated development of the major hydropower potential located at four
poles of the continent: Niger, Congo, Nile and Zambezi river basins;
 Expedite the interconnection of regional power pools into a continental network.
MAP: Africa’s Four Main Hydropower Hubs
Source: African Union. Infrastructure Consortium for Africa Annual Meeting 2009, Rome, Italy
9
Infrastructure Development in Africa, African Union Assembly, 12th
Ordinary Session, 1-3 February 2009, Addis Ababa,
Ethiopia
10
Addis Ababa, Ethiopia, March 20-24, 2006

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2.2.3 New and Renewable Energy Sources
Africa’s potential for developing new and renewable energy resources, in particular the solar
energy of the Saharan desert and other semi-arid areas of Africa, has been recognized at
successive African Union Conferences. The main plan of action for developing the continent’s
renewable energy potential emerged from the high level Dakar Conference in April 2008 and
was reaffirmed in the Maputo Declaration of November 2010.
The April 2008 Dakar Conference on ‘Renewable Energy in Africa’ adopted a declaration with
the goal of raising US$ 10 billion for renewable development during the period 2009-2014. It
also drew up a plan of action to create the enabling environment for this investment and to
help mobilize the needed financial resources for the program. The AUC, in partnership with
UNIDO, was entrusted with responsibility for follow up and monitoring. The following specific
actions were proposed:
 Establish a high level policy advocacy group at the ministerial level to lead the
implementation of the Dakar Plan of Action;
 Promote the establishment of New and Renewable Sources of Energy technologies at the
regional level in order to make these technologies more affordable;
The harnessing of Africa’s solar energy potential for electricity generation has been given
increased attention since the Dakar conference. In February 2010, a resolution on solar energy
in the Sahara was adopted at the Assembly of the AU heads of state11
while in November 2010
the Conference of Africa’s Energy Ministers issued a resolution on a solar energy study, which
called for ‘close cooperation for the development of solar energy in general and the
technologies for utility scale electricity generation in particular’12
. In January 2011, an AFREC
workshop in Algeria sponsored by the AUC provided an overview of the study plan and layout
for harnessing the solar potential of the Sahara desert and the Sahel region13
.
Solar The main project concept for developing the solar energy potential of the Sahara is the
Desertec project. The objective of the Desertec project is to develop clean, sustainable and
climate friendly energy sources from the deserts in North Africa using concentrating solar
power (CSP) technology. The solar-based electricity would be supplied to regional markets in
Africa and exported to Europe. The project concept is on a massive scale and envisages up to
$400 billion investment over the period 2020-2050. Though the concept has been under
development for a number of years, it has received further impetus since 2007, with strong
European support.
Geothermal Africa’s geothermal potential is concentrated in the Rift Valley countries and is
estimated as high as 14,000 MW14
. However, less than 200MW of this potential has been
developed for electricity generation, mainly in Kenya which had an installed capacity of 167
MW in 2010. While geothermal development has been exclusively for national electricity
markets, the geothermal potential, if fully exploited, could also benefit regional markets, in
particular in Eastern Africa. With this objective in mind, the Maputo Conference of Energy
Ministers committed itself to support the regional cooperation program for geothermal energy
development in Eastern Africa15
and requested the AUC ‘launch operationalization’ of the
Geothermal Risk Mitigation Fund in Eastern Africa16
, the purpose of which is to support the
exploration drilling needed to establish the geothermal reserve potential of this region.
11
Resolution N° Assembly/AU/Res.2 (XIV) adopted by the AU Heads of State and Government held in Addis Ababa in
February 2010 on the Solar Energy in the Sahara.
12
Resolution on Solar Energy Study, Conference of African Ministers in charge of Energy, 1-5 November 2010, Maputo,
Mozambique;
13
AFREC Workshop on the Study of Harnessing Solar Energy Potential of the Sahara Desert for Electricity Generation,
Algiers, Algeria, January 4-6, 2011
14
Infrastructure Development in Africa, African Union Assembly, Addis Ababa, 1-3 February, 2009
15
Article 25, paragraph e, Maputo Declaration, Maputo, Mozambique, 5 November 2010
16
Article 27, paragraph d, Maputo Declaration, Maputo, Mozambique, 5 November 2010

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2.3 Regional Policies
2.3.1 Objectives
Regional energy policies are aimed at strengthening regional cooperation in the development
and utilization of Africa’s energy resources to encourage energy trade. Key socio-economic
objectives of the regional economic communities in fostering energy trade have been to
support strong economic growth as well as increase access to basic energy, which is
fundamental to attaining the longer-term goal of eradicating poverty.
The main focus of such cooperation to date has been on increasing electricity exchanges
between neighbouring African countries in order to provide a reliable supply of electricity at a
lower and more affordable cost for consumers17
. The longer-term goal is to develop regional
electricity markets, which would be eventually linked throughout the African continent.
Regional cooperation in developing the continent’s growing natural gas potential has also
been receiving attention- though more recently.
2.3.2 Regional Power Pools
The strategy adopted by most regional areas of Africa for cooperation in the energy sector has
been to create regional power pools. Experience in developing regional power pools in Europe
and North America, and more recently in Central America, has recognized the importance of
having an adequate policy framework to help achieve the goals of regional integration –
namely, lower cost electricity, improved reliability and quality of supply, and enhanced security
of supply.
An adequate policy framework, comprising a number of steps or building blocks as shown in
Figure 1-2, is important for regional electricity integration and, eventually, for establishing
successful operating power pools18
.
Figure 1-2: Policy and Institutional Framework for Regional Electricity Integration
In addition, building adequate institutional capacity, addressing energy security concerns,
enforcing financial discipline and securing a clear mandate from member countries to plan for
and implement regional investments are also essential inputs. Conversely, the absence of
17
The first energy interconnections in Africa date from the 1950s with (i) 220 kV transmission line between Zambia and
the copper producing state of Katanga, DRC; (ii) Kariba South hydroelectric plant (666 MW) and transmission line
(330 kV) to Zambia and Zimbabwe. In West Africa, there have been several decades of cross-border electricity
trading through bilateral and trilateral agreements even prior to the establishment of the Economic Community of
West African States (ECOWAS) in 1979. In North Africa, gas pipeline connections, integrating Algeria with Europe via
Tunisia and Morocco, date from the 1960s
18
USAID Sub-Saharan Africa’s Power Pools: A Development Framework. White Paper, 2008

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these building blocks limits electricity trade and poses obstacles to the expansion of a
regional market.
These building blocks provide useful reference points against which to measure progress in
putting in place the needed policy and institutional framework to foster electricity trade and
develop competitive regional electricity markets.
Regional Energy Policies in the Southern Africa Development Community (SADC)
The overall goal of the energy sector in the SADC region is to ensure the availability of
sufficient, reliable, least-cost energy services that will assist in the attainment of economic
efficiency and the eradication of poverty whilst ensuring the environmentally sustainable use of
energy resources19
.
The SADC region has a long history of regional electricity integration between its member
states. Since 1995, the main policy steps taken and agreements reached by the SADC member
states to promote regional cooperation in the energy sector have been the following:
 Regional Power Pool Created 1995 (SADC Summit, Johannesburg, South Africa, August
28 1995)
 Energy Protocol 1996 (SADC Energy Protocol, August 1996), which provided the legal
and policy framework for cooperation in energy. The Energy Protocol aimed at
harmonization of national and regional energy policies; cooperation in energy
development energy pooling; ensuring the provision of reliable and sustainable energy
services; promoting joint development of human resources and organizational capacity
building; and cooperation in research, development, dissemination and transfer of low-
cost energy technologies.
 SADC Energy Cooperation Policy and Strategy/SADC Energy Sector Action Plan
(SADC Council of Ministers in 1996 and 1997 respectively), which made the SADC Energy
protocol operational. The sub-sectors for cooperation were petroleum, natural gas,
electricity, coal, renewable sources, wood fuel, and energy efficiency and conservation.
 Regulatory Policy (2002) SADC Energy Ministers established the Regional Electricity
Regulators Association of Southern Africa (RERA) as a formal association of electricity
regulators in July 2002 and it was officially launched in Windhoek, Namibia in September
2002. RERA's broad mission is to facilitate the harmonization of regulatory policies,
legislation, standards and practices as well as to be a platform for effective cooperation
among energy regulators within the SADC region with following strategic objectives:
- Capacity Building & Information Sharing;
- Facilitation of Electricity Supply Industry Policy, Legislation, and Regulations; and
- Regional Regulatory Cooperation.
 SADC Regional Indicative Strategic Development Plan (2004) emphasized co-
operation in infrastructure development. The strategies for achieving this goal in energy
were:
- In the Electricity Sub-sector, promoting power pooling through the extension of grid
interconnections; and consolidating the transformation of the Southern African Power
Pool (SAPP) from a ‘co-operative’ pool, involving bilateral power purchase
agreements and coordinated dispatch between countries, to a ‘competitive’ power
pool, where dispatch is based on the least- cost merit order;
19
SADC, RISP, Chapter 3, Energy

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- (ii) In the Petroleum and Gas Sub-sector, promoting joint exploration and
development of resources; and cooperation in the joint procurement of petroleum
products.
Improving energy access is a major goal of energy policy in all SADC Member States. However,
within SADC, improving energy access is fundamentally a national rather than a regional
responsibility. Efforts made at the regional level are largely supportive of endeavours at the
level of Member States.
The log frames below (in Figure 1-3) provides a summary of the main regional policy initiatives
of SADC and of SAPP aimed at strengthening regional energy integration. These are shown
together with the results expected from these policies, as indicated in the different policy and
planning documents of SADC and SAPP.

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Fig 1-3 SADC Region: Regional Policy Log Frame
SAPP OBJECTIVES SAPP POLICY
INITIATIVES
EXPECTED
RESULTS
INDICATORS RISKS and
ASSUMPTIONS
SOURCES of
VERIFICATION
Develop world class,
robust, safe,
efficient, reliable
and stable
interconnected
electrical system in
SADC region.
Operational
and market
rules for
regional
market;
 Competitive
electricity market
linking all member
states by 2012
 Spot trading
market for
electricity
exists
 Private
sector
investment
(PSI) in
regional grid
SUBSTANTIAL
Risk Key
Assumptions:
 .All member
states commit
to regional
integration
 Regional
investment
climate
conducive to
PSI
 Spot market
risk accepted
by PSI
 SAPP Annual
Market
Reports
Co-ordinate and
enforce common
regional standards
of Quality of
Supply;
measurement and
monitoring of
systems
performance
Common
technical and
operational
standards for
interconnecte
d grids
 Technical
standards agreed
on for grid
harmonization;
.System operator
coordinates
electricity
exchanges/trade
 Similar
technical
standards
for trading
countries;
MODEST Risk
Key
Assumptions:
 SAPP given
enforcement
powers to
exact common
standards
 SAPP Annual
Reports
Harmonize
relationships
between member
utilities
Capacity
building
programs
 All member states
have planning and
regulatory
capacity
 Bi-annual
national
investment
plans ; 2
National
regulatory
agencies
MODEST Risk
Key
Assumptions:
 SAPP has
resources for
training
programs
 SAPP Annual
Reports
Increase power
availability in rural
communities
Regional
planning
framework
 70% access for
rural households
by 2018
 Rural access
connections
HIGH Risk
Key
Assumptions:
 Member states
have financial
resources and
management
capacity for
rural
connections
 SAPP and
SADC
regional
energy data
Implement
strategies in
support of
sustainable
development
Environmental
policy
guidelines
 Environmental
assessments
undertaken for all
regional
investments
 Environment
al impact
assessment
(EIA) reports
MODEST Risk
Key
Assumptions:
 SAPP given
authority to
enforce
guidelines
 SAPP Reports
on
Environment

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Regional Energy Policies in Western Africa Region (ECOWAS)
The first step towards regional coordination of energy activities in the ECOWAS region was
taken in November 1981 at the symposium, ‘Energy for Survival’, in Freetown, Sierra Leone,
which addressed the severe energy issues affecting the 16 member states at that time. Since
2000, regional energy policies in the ECOWAS region have been focused on providing a vision
of energy cooperation to 2015, which is shared by member states, and aimed at improving the
condition of the ECOWAS rural and peri-urban populations.
The policy steps towards this goal have been the following:
 West Africa Power Pool (WAPP) was created in 1999 as a regional power pooling
mechanism for integrating national power system operations into a unified regional
electricity market. In July 2006, WAPP was formally inaugurated as a regional
organization comprising both public and private electric power utilities of the ECOWAS
region. 20
 ECOWAS Energy Protocol, January 2003, provides the legal framework for cross-
border power trading in West Africa. This Protocol aims at promoting long-term co-
operation in the energy field, with a view to achieving increased investment in energy
and increased energy trade in the West Africa region. Key provisions of this legislation
include (i) Protection of foreign investments, (ii) Non-discriminatory conditions for trade
in energy, and (iii) Dispute resolution procedures.
 Regional Regulator, January 2008. The ECOWAS Regional Electricity Regulatory
Authority (ERERA) was established in Accra, Ghana, with the following objectives:
- Develop technical regulations for the management of electricity exchanges between
interconnected systems in the ECOWAS region and monitor their application;
- Monitor wholesale electricity sales between various buyers from member States and
analyze their efficiency with a view toward avoiding antitrust problems;
- Develop dispute resolution procedures; and
- Establish effective communication between governments, regulators, and electricity
companies of member States.
ERERA has two roles:
 Regional regulator for cross-border exchanges;
 Agency providing assistance to national regulatory entities to ensure regional and
national regulations is complementary.
 A White Paper Regional Energy Policy was published in October 2005, and subsequently
adopted in January 2006, outlining a strategy for increasing access to energy services in
rural and peri-urban populations to help achieve the MDG goals. The White paper
reflects the commitment of 15 West African member states to a shared energy policy
aimed at bringing about a fourfold increase in access to energy over a 10-year period i.e.
by 2015.
Since 2008, ECOWAS has been putting in place the core building blocks for successful
regional electricity integration21
- namely, a transparent and harmonized policy framework of
legal, regulatory and technical standards; a clear institutional framework for regional planning;
20
The Southern African Power Pool (SAPP), with more than 15 years of operational involvement in regional
electricity trade, has helped shape the policy and institutional development of Africa’s more recent
regional power pools – in West Africa (1999), in East Africa (2005) and in Central Africa (2003)
21
World Bank Document, Report Number 48877-AFR: Additional Financing for the Felou Hydroelectric Project of the
West African Power Pool (APL) Program. July 30, 2009

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and the elaboration of a priority regional investment program. This policy framework is
summarized in the log frame below (Figure 1-5) together with the expected results and related
indicators.
Fig. 1-5 ECOWAS REGIONAL ENERGY POLICY LOG FRAME
WAPP OBJECTIVES WAPP POLICY
INITIATIVES
EXPECTED
RESULTS
ASSUMPTIONS
SOURCES of
VERIFICATION
1. Develop power
generation and
transmission facilities
through regional
collaboration with
emphasis on cross
border projects
 Regional
planning
framework
agreed by
member
states
 Regional
investment plan
prepared,
financed and
implemented
 Four-fold
increase in
access by 2015
 Annual
investment
plans
 Consumer
connections
SUBSTANTIAL Risk
Key Assumptions:
 All member
states commit
to regional
investment
plan
 Capacity/finan
cing to
implement
plan
 WAPP
Regional
plans and
ECOWAS
Member State
National Plans
2.. Improve the reliability of
power system and
quality of power supply
in the region
 Regional
planning
framework
for grid
strengthenin
g
 Reduction in
power outages
for
interconnected
systems
 Improved
frequency
stability for
interconnected
links
 Annual power
outages for
interconnecte
d system;
 Frequency
stability data
on
interconnecte
d links
SUBSTANTIAL Risk
Key Assumptions:
 Priority given
to investment
for power
system
improvements
 WAPP is able
to enforce
technical and
operating
standards
 WAPP annual
Electricity
data
3. Create attractive
environment for
investment
 Regional
legal and
regulatory
policy
 Private
investment in
regional
generation
projects
 Level of
private
investment in
regional
projects
SUBSTANTIAL Risk
Key Assumption:
 Regional
investment
climate and
utilities’
creditworthines
s conducive to
private
investment
 ECOWAS data
on private
investment
4. Create common
operating standards and
rules
 Grid code
policy for
interconnect
ed grids
 Trading
countries adopt
common
standards
 Key operating
rules and
equipment
used for
interconnecti
ons
SUBSTANTIAL Risk
Key Assumption.
 Funding
available to
enable
adoption of
common
standards
 National
technical data
of trading
countries
5. Create transparent and
reliable mechanism for
dispute resolution
 Regulatory
Guidelines
 Regulatory
agency set up
with requisite
authority to
resolve disputes
 Disputes are
satisfactorily
resolved
SUBSTANTIAL Risk
Key Assumption
ERERA has needed
expertise and
independence
 ERERA
documents

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Regional Energy Policies in Eastern and Southern Africa (COMESA)
The main objective of regional energy policies is to ‘make available for the Eastern African
region affordable and reliable electricity by pooling together all available electrical energy
resources in the region in an optimized and coordinated manner in order to increase the
access rate to electricity and thereby promote regional integration’. Article 3 of the MOU gives
emphasis to ‘increased power trading’ and to ‘development of an electricity market in the East
Africa region’.
Since 2005, the main policy steps in the COMESA region- Common Market for Eastern and
Southern Africa- towards establishing a framework for regional energy cooperation have been:
 East Africa Power Pool (EAPP) 2005. It was set up as a specialized institution under
COMESA. The initial membership of EAPP comprised the seven countries – Burundi,
Egypt, Ethiopia, DRC, Kenya, Rwanda and Sudan- that were signatories to the original
intergovernmental MOU22
. Ten utilities from these countries subsequently signed inter-
utility MOUs. EAPP’s main responsibilities are:
- Planning- elaborating an investment plan for generation, transmission and
distribution of electricity;
- Regulatory-facilitating the introduction of a regulatory framework for cross border
electricity trade in Eastern Africa; and
- Capacity Building- coordinating technical assistance and capacity building initiatives
to support integration of electricity markets in Eastern Africa.
 The East African Community (EAC), comprising Kenya, Uganda and Tanzania,
announced its intention in 2007 to establish a sub-regional power pool by constructing
interconnections between these countries.
 COMESA Energy Programme, December 2005. The main purpose was to promote
regional cooperation in energy development, trade and capacity building. The focus of
the COMESA Energy Program was on:
- Energy policy and regulatory harmonization;
- Development of regional energy infrastructure;
- Facilitation of trade in energy; and
- Capacity building and co-operation with regional and international organizations as
well as with technical institutions.
 COMESA Model Energy Policy Framework, April 2008. Its main purpose was to
provide COMESA member States with guidelines that would facilitate energy policy
harmonization in the region to improve efficiency and increase investment. This
document emphasized close cooperation in the development of the region’s energy
resources in the following areas:
- Joint exploration/exploitation of hydro and fossil fuels;
- Development of a mechanism for facilitating trade in energy fuels, such as coal,
natural gas, petroleum and electricity; and
- Interconnecting national electricity grids.
 Regulatory Policy. A regulatory framework is under preparation and expected to be
completed in 2011.
22
Potential member countries of the EAPP are Uganda, Djibouti, Eritrea and Libya, with Libya due to become a
member on November 27, 2010.

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Fig. 1-6 COMESA REGIONAL ENERGY POLICY LOG FRAME
EAPP OBJECTIVES EAPP POLICY
INITIATIVES
EXPECTED
RESULTS
ASSUMPTIONS
SOURCES of
VERIFICATION
1. Increase power
supply for the
COMESA member
countries in order to
increase access rate
of population to
electricity
 Put in place
regional
planning
framework
 Increased
investment in
regional
electricity
projects;
 Installed
capacity
matches
demand
 Ratio regional
investment to
total national
investment
 Available
regional
power
capacity (MW)
SUBSTANTIAL Risk
Key Assumptions:
 Adequate
capacity and
financing for
increased
investment
program
 EAPP
planning
documents
and COMESA
Member State
National Plans
2. Facilitate long term
development of
regional electricity
market
 Put in place a
legal, regulatory
and
commercial
framework for
electricity
exchanges with
well-defined
market rules
 Increased
number of
electricity inter-
connections;
 Market
developed in
short term
energy trade
 Number of
new regional
electricity
interconnecti
ons
 Share of
regional
power trade
in total
generation
SUBSTANTIAL Risk
Key Assumptions:
 Member states
commit to
regional
integration
 Investment
climate
conducive to
PSI
 EAPP and
COMESA data
on regional
electricity
trade
3. Optimize usage of
the region’s energy
resources
 Regional
investment
planning gives
priority to hydro
development
 Region’s main
hydro potential
is developed,
especially Gibe
 New regional
hydro
capacity(MW)
SUBSTANTIAL Risk
Key Assumption:
 Project
management/
financing
found for large
hydro
schemes
 EAPP
planning
documents
and donor
reports
4. Reduce electricity
cost in the Region
by using power
system
interconnection and
increasing power
trade
 Harmonize
operating and
technical
standards
 Reduced
outages and
increased
stability of
electricity
supply
 Key operating
rules and
equipment
used for
interconnecti
ons
SUBSTANTIAL Risk
Key Assumption.
 Funding
available to
improve quality
of electricity
supply
 EAPP and
country utility
reports on
regional
networks
5. Create conducive
investment
environment for
investment
 Regulatory and
commercial
policies
 (PSI)Private
sector
investment in
regional
generation
projects
 Volume of PSI
in regional
integration
investments
SUBSTANTIAL Risk
Key Assumption:
 Regional
investment
climate
conducive
 COMESA and
EAPP
investment
data
Regional Energy Policies in the Central Africa Region (ECCAS)
The Economic Community for Central African States (ECCAS) was created in late 1983 with 11
member states. Within the ECCAS region, there is significant potential for developing
abundant, low cost, hydroelectric resources, especially in the DRC, where development of the
massive hydro-potential of Inga is underway. The region’s enormous hydro potential provides a
strong economic rationale for regional electricity integration, not only within the ECCAS region

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but also with adjoining regional economic communities and power pool networks. As noted
above, DRC is a member of both the ECCAS and COMESA regional economic communities,
which facilitates the development of regional electricity integration strategies between regions,
especially in regard to the development of the hydro potential of Inga. The basic policy
objective in the ECCAS region is to develop a regional electricity market in order to provide
more reliable and lower cost electricity to consumers. Since 2003, the following agreements
have been reached with ECCAS member countries towards this objective:
 Regional Power Pool, January 2003 The Central African Power Pool (CAPP) was
established as a specialized institution of ECCAS. Currently, CAPP has 10 members since
Burundi joined the East African Power Pool. A key objective of CAPP is to develop a
regional electricity market to provide more reliable and lower cost electricity supply to
consumers in ECCAS states.
 Legal Agreements, April 2003 Two legal agreements have been signed by member
States:
- Inter-Government Framework Agreement;
- Inter-Utility Agreement.
The Inter-government Framework Agreement defines the members of CAPP as ‘any public,
private, or semi-public enterprise engaged in electric energy generation, transmission or
distribution of electricity in Central African states’.
These agreements also established the current institutional framework for CAPP with its
Permanent Secretariat based in Brazzaville, Congo.
A five year Action Plan (2006-2010) for CAPP has been prepared with two main activities: (i)
identification of priority interconnection investments in ECCAS; (ii) technical assistance aimed
at (a) putting in place a legal framework for the regional electricity sector; (b) addressing
different technical issues such as harmonization of operating rules; (c) establishing a
regulatory framework; and (d) drawing up a capacity building program for technical and
regulatory staff.

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Fig. 1-6 ECCAS REGIONAL ENERGY POLICY LOG FRAME
CAPP OBJECTIVES CAPP POLICY
INITIATIVES
EXPECTED
RESULTS
ASSUMPTIONS
SOURCES of
VERIFICATION
1. Develop the enormous
hydroelectric potential of
Central Africa to meet
demand for electricity
both within and outside
region
 Regional
planning
framework
gives high
priority to
Inga hydro
development
 Significant
electricity
generated from
Inga is
transmitted for
regional trade
 Available
capacity
from Inga for
regional
electricity
exchanges
HIGH Risk
Key Assumptions:
 1.Political
stability in DRC ;
 2. Management
capacity and
finance
mobilized
 3.
Creditworthines
s of utilities and
governments
 ECCAS, SNEL
and donor
reports
Develop a regional
electricity market to
provide more reliable and
lower cost electricity
supply to consumers in
ECCAS
 Legal,
regulatory,
and
commercial
framework
 5 yr action
plan to
identify
priority
interconnecti
ons
 Increased
regional
interconnection
s 2.Electricity
exchanges
within ECCAS
region as well to
SADC region
 Share of
electricity
trade in
ECCAS
region
SUBSTANTIAL Risk
Key Assumptions:
 Institutional
capacity and
finance
available
 ECCAS and
CAPP
documents
Increase access rate of
the population in the
ECCAS region
 Regional
plans give
priority to
increased
consumer
access
 Consumer
access rate
improved over
5yr period
 Consumer
access in
key ECCAS
countries
HIGH Risk
Key Assumptions:
 Sustained
investment
priority given to
access
 ECCAS ,
CAPP and
national utility
data
Improve the reliability and
the quality of electricity
supply in the ECCAS region
 Common
technical and
operating
standards
 Reduced
outages and
improved
frequency
control on
regional
transmission
links
 Annual
outages and
frequency
fluctuations
in key
transmission
links
HIGH Risk
Key Assumptions:
 Institutional
capacity and
finance
available
 to enforce
compliance
 ECCAS
technical
reports and
national utility
data

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Regional Energy Policies in North Africa Region, COMELEC
Regional energy trade in North Africa involves primarily trade in natural gas- from Algeria to
Europe via transit countries, Tunisia and Morocco. Presently, trans-border trade in electricity
between the North African countries and Europe is negligible. Algeria is about to resume
exports by trading on the Spanish short-term market, while Morocco purchases electricity by
trading in the same market. Bilateral electricity trade between the Maghreb countries is very
small and has not grown significantly since 2005.23
The three Maghreb countries are substantively self sufficient in electricity generation with the
exception of Morocco, which imports around 10% of its requirements. There is also an
important subsea electricity link between Morocco and Spain, built with an initial capacity of
700 MW that has since been expanded to 1400 MW. The subsea link is a vital component of
the larger Mediterranean Electricity Ring (Med Ring) concept, which aims at linking
Mediterranean countries. In addition, there is an electricity transmission link between Tunisia
and Libya but negligible trade between these countries. Finally, Egypt is a large generator and
consumer of electricity, though electricity and natural gas exports are small.
In contrast to Sub-Saharan Africa, a regional power pool organization has not been formed in
the North Africa region; nor have policy steps been taken to put in place a legal, regulatory, or
planning framework for regional trade. Instead, electricity links have first been constructed,
followed by bilateral exchange agreements between adjoining countries. With key
infrastructure links now in place, the potential for growth in electricity trade in the Maghreb
region. However, any future trade growth is likely to be determined more by (i) further
availability of Algeria’s large gas reserves for the Maghreb region (and for Moroccan power
market, in particular) and (ii) decisions to upgrade the capacity of the transmission network
through Morocco to Spain than by putting in place a regional policy or planning framework to
encourage electricity trade in North Africa.
2.3.3 Regional Gas Integration
Recent meetings of the African Union have recognized the scope for increasing inter-African
trade in natural gas and have emphasized the need for regional cooperation to help develop
the continent’s rapidly growing gas potential.24
In contrast to the North African region that
already has a well developed gas transmission and distribution network, the AU meetings
noted the high proportion of flared gas in sub-Saharan Africa i.e. 25% of worldwide gas flaring,
which could be captured and used to generate low cost electricity, thereby reducing global
environmental damage from the flaring of gas.
The growing awareness of Africa’s undeveloped gas potential has led to a series of agreed
objectives and related actions to exploit this potential:
 Establishing a framework to capture and distribute the flared gas to African countries as
well as for export;
 Expediting the West African Gas Pipeline;
 Expediting development of the Trans Saharan Gas Pipeline that would export Nigerian
gas to Europe and eventually serve as backbone to expand gas supply to surrounding
African countries.
The African continent’s natural gas resource base can be grouped into three main regional
areas:
 North Africa, comprising the main producing country, Algeria, but also Libya and Egypt;
23
‘Regional Energy Trade in the Maghreb Region’. Economic Consultants Associates, September 2007
24
Infrastructure Development in Africa, African Union Assembly, 12th
Ordinary Session, 1-3 February 2009

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 West Africa, comprising the largest producing country, Nigeria, as well as other
producing countries such as Equatorial Guinea in the Gulf of Guinea and recently
offshore Ghana;
 East Africa, where current production is small in comparison with other regional
producing areas but where a string of recent offshore gas discoveries in Tanzania, and
particularly Mozambique, hold promise for converting this region into an important gas
hub, with potential for LNG export to Asian and Middle Eastern markets25
.
The differing gas integration challenges of each of these three regional areas are briefly
discussed below.
A. North Africa Despite its long production history, Algeria remains one of the main growth
areas in gas production in the African continent, though with a primary focus on expanding
gas exports to Europe through new pipelines to Italy and Spain that are either already
completed, or close to completion; new LNG export facilities are also under construction. In
2009, Algeria accounted for 40% of Africa’s gas production. 26
Smaller volumes of Algerian gas
are supplied to Maghreb transit countries (Tunisia and Morocco) via existing gas infrastructure.
For example, gas is supplied via a short spur line from the main gas trunk line from Algeria to
Spain to a newly constructed 384 MW Tahaddart combined cycle power plant in Morocco. In
Libya, gas production in 2009 represented 7.5% of Africa’s total gas production. The main
markets for Libyan gas are export markets via pipeline to Italy and LNG export. Finally, Egypt
has become an increasingly important gas producer, with its share in Africa’s total gas
production having doubled-from 15% to 30% over the past 10 years. However, Egypt is facing
greater challenges than other North African countries in balancing surging domestic gas
demand with gas for export, even though new export outlets have been recently opened- to
Israel, Jordan and into Syria.
B. West Africa This region is emerging as an important natural gas provider in the world
market with proven gas reserves having increased by 50% since 199927
. Nigeria is the main gas
producer, which has been mainly for LNG export28
though domestic gas demand in new power
generation is growing rapidly. Equatorial Guinea completed construction of its first LNG
production facility in 2007 while the first LNG facility in Angola is expected to come on stream
in 2012. The export of natural gas from Nigeria to adjoining West African countries of Benin,
Togo and Ghana via gas pipeline has been under consideration for more than 20 years but
was only recently completed in early 2010. In general, local and regional gas markets and
infrastructure is underdeveloped in the West Africa region though the potential for expanding
these markets is considerable, assuming sustained economic growth in the region.
Nigeria, which accounts for more than a third of Africa’s proven gas reserves and about 15% of
the continent’s current production, has been in discussion with Algeria and Niger about the
construction of a 4,200 km Trans-Saharan gas pipeline that would be connected to European
markets. Approximately 400 bcm, or 8%, of proven reserves have been put aside for this
project. The project is still at the early planning stage with a tentative start-up date of 2015.
In Ghana, recent oil and gas discoveries in the offshore Jubilee and other fields have opened
up the prospect of additional gas resources, not only for the expanding domestic gas market
in Ghana but also for adjoining regional markets in Cote D’Ivoire and other West African
countries.
C. East Africa Until recently, gas production in this region has been small, mainly in Tanzania,
where it has been used for domestic power generation. However, since 2008, increased
exploration activity not only in Tanzania but also offshore in Mozambique and onshore in
Uganda has led to significant gas discoveries, which could open the possibility of these gas
discoveries being developed and transported to regional markets in the Eastern and Southern
25
Africa Energy February 18, 2011
26
BP Statistical Review of World Energy, June 2010
27
BP Statistical Review of World Energy, June 2010
28
Nigeria accounted for 10% of world LNG trade in 2007. IEA, Natural Gas Market Review 2008

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Africa regions as well as for LNG export. In the short term, the main task will be to firm up more
precisely the gas potential of these recent discoveries. The longer term challenge will be to
put in place a gas utilization strategy that includes the necessary gas infrastructure to supply
domestic, regional and export markets.
2.3.4 Regional Cooperation in Petroleum Product Supplies
Recent global energy crises have had severe repercussions on the economies of Africa’s oil
importing countries. Several recent analyses have shown that those countries most vulnerable
to oil price shocks are low income oil importing countries, which are disproportionately
concentrated in Sub-Saharan Africa.29
Africa’s vulnerability to oil price hikes has been recognized for many years. Together with long
recognized inefficiencies in the downstream oil sector, it has prompted a keen interest in
setting up regional storage and distribution facilities to reduce inefficiencies in the
procurement and distribution of petroleum products.30
All productive sectors of an economy
can benefit from an efficiently managed downstream petroleum sector, none more so than
Africa’s transport networks and power sectors, where costs are already high for a variety of
other reasons. At the same time, the small market size of many African economies makes it
difficult to achieve efficiency in the downstream petroleum sector, a reality which provides a
strong incentive for regional cooperation in the refining, procurement, and distribution of
petroleum products.
With this objective in mind, the following actions were proposed at the AU Conference of
Ministers in Cairo in 200631
, and reaffirmed at the Maputo Conference of Energy ministers in
November 201032
, to help promote more regional cooperation in Africa’s downstream oil sector.
 Establish a strategic framework for cooperation in regional oil procurement, utilization of
refineries, storage and distribution facilities;
 Expedite the operationalization of the African Petroleum Fund (APF), which is intended
to mitigate the effects of the increase in oil prices on African oil importing countries by
establishing a high level Task Force Group that ‘will advocate on APF’;
Past studies on Sub-Saharan African economies have provided an indication of the substantial
savings that could be realized from more efficient procurement practices in the acquisition of
petroleum products, if all sub-Saharan African countries were to adopt such procurement
practices.33
The same rationale can be applied to the potential benefits from regional
cooperation in oil procurement, particularly for small, oil-importing economies, for which the
cost of vital petroleum products remains very high.
2.4 Policy coherence table
2.4.1 Coverage of Regional Electricity Policies
The policy framework being put in place to govern the operation of Africa’s regional power
pools follows closely worldwide experience in developing successful regional power pools,
especially in Europe and in North America.
29
Petroleum Markets in Sub-Saharan Africa. Masami Kojima et al. ESMAP, World Bank, March 2010
30
First AU Conference of Ministers Responsible for Hydrocarbons, Cairo, Egypt, December 11-14, 2006
31
First AU Conference of Ministers Responsible for Hydrocarbons, Cairo, Egypt, December 11-14, 2006
32
Article 25, paragraph d, Maputo Declaration, November 1-5, 2010
33
First World Bank Workshop on the Petroleum Products Sector in Sub-Saharan Africa, ESMAP, September 2001

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Phase 1
For the most part, these power pools are at a relatively mature stage in terms of operating
experience, the size of electricity market, consumer income levels, and the volume of
electricity traded.
In contrast, with the exception of the Southern African Power Pool (SAPP), Africa’s experience
with power pools is much more limited while the volume of electricity traded is still very small
In 2005, the share of regional electricity trade in each of the regional power pools was as
follows: SAPP (9.7%); WAPP (5.1%); EAPP (0.9%); and CAPP (0.1%). Since 2005, the shares have
declined further, most notably in SAPP where electricity imports fell to below 4% in
2008/200934
. It is important, therefore, to keep in mind the current context of Africa’s power
pools in assessing the adequacy and completeness of the policy frameworks.
A consensus has emerged in regard to the main policy and institutional building blocks
needed to develop a competitive, regional electricity market, including the sequence in which
they should be put in place.
The main policy frameworks that have been implemented, or are in the process of being
implemented, by Africa’s regional power pools are shown in the Table below. In addition to
each particular policy area, the Table also highlights key sub-components that have been
incorporated into the policy frameworks of successful regional power pools and that are
considered important provisions in realizing the objective of each policy area.
34
www.sapp.co.zw/docs/annualreports

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Phase 1
REGIONAL ECONOMIC COMMUNITY (POWER POOL)ENERGY POLICIES
AUC SADC
(SAPP)
ECOWAS
(WAPP)
COMESA
(EAPP)
ECCAS
(CAPP)
COMELEC
LEGAL
Inter Government MoU    
Inter Utility MoU    
Regional Law or Energy Protocol    X
Private party access/direct purchase X  ? X X
REGULATION
Regulatory Institution   X X X
Regulatory Guidelines   X X X
Regulatory Independence X  X X X
PLANNING
Organizational Structure    X X
Regional Integration Plan    X X
Plan Implementation Mandate X   X X
OPERATIONAL
Grid Code    X ?
Systems Operation   X X X
Regional Dispatch  X X X X
COMMERCIAL
Market Rules    X X
 Yes
X No

D
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Phase 1
The general conclusion from a review of the above table is that each of the broad policy areas
- legal, regulatory, planning, operational, and commercial- are important steps towards
establishing a basic framework for regional electricity trade for the following reasons:
 First, there is a need for legal agreements between member governments of the power
pool to enable the utilities of each country to negotiate contracts for power exchanges
and provide guarantees on issues of payment obligations, currency convertibility, and
arbitration. A regional legal framework is also important to create a favourable
investment climate, protect against monopoly abuse, clarify conditions of access to the
grid, and provide mechanisms to resolve disputes.
 Second, a separate regulatory framework for regional trade is also needed. In contrast
to national regulation, which has a priority focus on protecting the consumer, regional
regulation focuses on measures needed to create and protect electricity trade.
 Third, regional investment plans that address future generation capacity requirements
of the region as well as strategic cross border interconnections need to be prepared
and an institution designated- normally the regional power pool- to prepare such plans.
 Fourth, harmonization of grid codes and the operating rules of interconnected networks
are fundamental to realizing the full benefits of electricity exchanges.
 Finally, basic commercial rules governing electricity exchanges need to be defined,
irrespective of whether these involve bilateral cooperative contracts or electricity trade
in a competitive market.
2.4.2 Areas not addressed by Regional Energy Policies
Notwithstanding the importance of the areas covered in the policy frameworks shown in the
Policy Coherence Table, the effectiveness of these policies in fostering regional electricity
trade is being constrained by a number of issues. These issues relate to the balance of
responsibilities between regional and national agencies in expanding regional electricity trade
as well as the adequacy of the incentives for private sector investment in regional electricity
networks. More specifically, the main issues that need to be clarified include:
 Decision making authority for regional investment plans between regional planning
agencies and national utilities or planning authorities;
 Responsibilities for mobilizing finance, implementation, and monitoring of priority
regional generation and transmission investments;
 Regulatory authority and the independence of regional regulatory agencies
 Incentives to encourage an increased presence of private providers- and purchasers- of
electricity in regionally integrated networks.
Underlying these policy concerns in the planning and regulatory frameworks is a more
fundamental concern- namely, reluctance on the part of national agencies to cede authority to
regional agencies for planning, regulation, and enforcement of regional grids. While there are
more serious, non-policy, constraints impeding the growth of regional electricity trade as
discussed in Section 4, the unwillingness to delegate clear planning, regulatory, and
operational authority to regional agencies highlights some of the difficulties that still need to
be overcome in promoting regional electricity integration.

D
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Phase 1
3. STATEMENT CONCERNING THE
LEVEL OF ACHIEVEMENT OF
POLICY OBJECTIVES
3.1 Methodology of evaluation
The main energy policies required for developing a competitive regional electricity market are
summarized above in Section 2.4 (Figure 1.8 Policy Coherence Table). Collectively, they
provide a framework against which to measure progress being made towards the objective of
increased electricity trade in Africa’s regional economic communities (RECs). For this purpose,
specific indicators of evaluation have been selected for each policy dimension.
3.1.1 Specific Policy Indicators
Legal and Regulatory
 Regional Legal Framework Inter-government and inter-utility MOUs signed by all
member countries/utilities. Regional legislation approved by all member countries
addressing access to grid, dispute resolution etc.
 Regional Regulatory Framework-regulatory agency formally established and minimum
staff in place; guidelines drafted and approved by member countries; independent
relationship with national regulators;
Systems Planning and Operation
 Regional Organizational Structure-an organizational structure, with adequate staff and
budget, is in place with responsibility for planning, developing, and operating regional
electricity interconnections;
 Regional Planning Framework- an agreed framework is in place for preparing regional
investment plans, which are reviewed/approved by member countries; the
implementation of national investment programs is based on the least cost regional
investment plan;
 Regional Systems Operation-a framework in place, with agreed set of operational rules,
to harmonize technical standards between interconnected networks; a systems operator
is in place and responsible for day to day electricity trade;
 System Operator with Minimum Capabilities- e.g. a database to measure/monitor
basic information associated with bilateral electricity trade;

D
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Phase 1
Commercial Framework
 Regional Market Rules- key principles governing commercial electricity exchanges
between two or more countries are defined and agreed; power purchase contracts are
concluded between trading countries;
 Dispute Resolution Mechanisms-legal framework provides a clearly defined
mechanism for dispute resolution of electricity trade transactions; satisfactory resolution
in practice of disputed electricity transactions;
 Utility and Country Creditworthiness- national utilities are financially solvent and can
enter into power purchase contracts and Government can provide political risk
guarantee;
 Regional Investment Climate-conducive to encourage private investment in regional
generation and transmission facilities;
Environmental Policy
 Develop Guidelines for Thermal Plant and Transmission Line Investments- status of
preparation of environmental guidelines;
 Assess Staff Capacity in RECs or Power Pools –minimum staff in RECs or power pools to
manage preparation of environmental guidelines for regional investments in power;
3.1.2 Policy Impact Indicators
 Number of Regional Electricity Interconnections, 2000-2010-this indicator would
measure the number of new transmission interconnections constructed over this 10
years period
 Growth in Share of Regional Electricity Trade, 2000-2010 –this indicator would
measure the growth of electricity trade over a 10 years period in each regional area.
3.2 Level of achievement by policy
In analyzing the level of achievement of the different continental and regional energy policies,
it is important to keep in mind the main objectives and expected outcome of these policies as
stated recently by Africa’s Ministers in charge of energy in the Maputo Declaration of
November 5, 2010. These objectives are to:
 Promote regional and continental cooperation in the development of Africa’s energy
resources;
 Increase energy trade within, and between, regional areas of the continent; and,
 Lower the cost of energy in order to improve access to basic energy services.
Improving access to basic energy services for an increasing proportion of Africa’s 880 million
people is a policy objective shared by all the RECs and has been reiterated in declarations by
the AUC, NEPAD Secretariat, and the Commission of Energy Ministers for Africa (CEMA).

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Phase 1
3.2.1 Level of Achievement of Continental Policy Objectives
As discussed in Section 2.1, AUC’s role is to coordinate and harmonize regional energy policies
across the African continent, point out discrepancies, and identify policy bottlenecks- all with a
view to advancing the physical integration of the African continent in energy infrastructure.
The effectiveness of the AUC’s policy coordination role is best measured by the following
activities and indicators derived from the continental policy log frame in section 2:
 Follow up on specific actions agreed at high level meetings of Energy Ministers on
regional integration issues, especially actions related to the development of large hydro
schemes that fall outside the responsibility of regional agencies;
 Progress made in advancing the physical integration of Africa’s main regional areas-
specifically, the increase in the number electricity and natural gas interconnections
between regional areas to enable energy exchanges to take place;
 Growth of electricity trade over a 10 year period (a) within specific regions; and (b)
between different regions;
 Progress made in developing renewable energy resources with specific emphasis on (a)
large hydro schemes; (b) geothermal resources; and (c) solar-based energy.
The continental policy achievement table below summarizes progress made towards three of
the main policy objectives aimed at increasing the number of regional energy infrastructure
links and increasing trade between countries in both electricity and natural gas. Progress
made is as follows:
 Large Scale Hydro Potential: Very little progress has been made since 2005 in
developing the potential of Africa’s large scale hydro schemes, in particular the Inga
hydro scheme. A decision was taken at the 2006 AUC meeting in Addis Ababa to
establish a Coordination Commission for the development of major, integrative,
hydroelectric projects. A Continental Coordination Structure was subsequently
established in 2008.
 Inter-Regional Electricity Infrastructure: No major inter-regional electricity connections
have been constructed and, as a result, there is no inter-regional electricity trade ;
 Natural Gas Infrastructure: The West Africa Gas Pipeline was commissioned in late
2009-10. The pipeline is currently transporting associated gas from Nigeria to Ghana and
the gas throughput is close to capacity. Gas spur links to Benin and Togo are currently
under construction. The pipeline was completed nearly 3 years behind the original
schedule.
 Geothermal: The development of the geothermal potential of the African Rift Valley
countries (Kenya, Ethiopia, Djibouti as well as Uganda, Tanzania and Rwanda) has been
constrained by (i) limited geo-scientific data and poorly organized data bases ; (ii)
absence of a legal framework to help promote private sector interest in geothermal
development ; and (iii) a lack of funding for exploration investment. Since 2000, only
modest progress has been made in developing the geothermal potential of this region
as shown in Kenya : Installed capacity: 2000- 57 MW ; 2010-167 MW Geothermal
potential: 3000 MW;
 Renewable resources: Solar and wind energy resources make a negligible contribution
to commercial energy requirements. However, important wind and solar energy
developments are underway in South Africa while major investments in concentrating
solar thermal power (CSP) plants are being considered in North Africa.

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Phase 1
Table 1-9: Achievement Table of Main Continental Energy Policies
3.2.2 Level of Achievement of Regional Policy Objectives
Progress made towards the stated policy objectives for each of these policies is summarized
below.
Legal Framework for Regional Electricity Integration
In the different regions of Africa, steps have been taken, starting in the mid-1990s, to put in
place a regional legal framework to govern electricity trade between adjoining countries, help
in fostering an investment climate to support the expansion of regional electricity exchanges,
and attract private investment. Progress made in taking these legal steps in each of Africa’s
regions is as follows:
35
Powering Industrial Growth: The Challenge of Energy Security for Africa, AU Conference of Industry Ministers,
September 24-27, 2007
OBJECTIVES
AUC
Continental
Objectives
STRATEGIC
POLICY
INITIATIVES
EXPECTED
RESULTS
INDICATORS PROGRESS
2000-2010
1. Ensure
energy
security35
 Develop fully
Africa’s
resource
potential –
esp. large-
scale and
integrating
regional and
continental
 hydro
schemes
Development of
hydroelectric hubs
 West Africa-Niger
river
 Central Africa-
Inga/Congo river
 Southern Africa -
Mozambique/Zambez
i
 East Africa-
Ethiopia/Nile
Coordination
Commission for
major hydro is
established
 Inter regional
power purchase
agreements
signed$
 Interconnection
of reg. power
pools
1(a)
Established
2008
None
None
2. Promote
intra-
African
trade in
energy
 Foster
regional and
continental
cooperation
in electricity
exchanges
and natural
gas use
 Increased regional
electricity and gas
inter-connections in
near term followed
by regional inter-
connections
 Number of new
regional
interconnections
in power and gas
 Share of power
traded in each
REC
Power-?; Gas-1
Varies from
0.5% to 5% in
SADC in 2008
3.Promote
global
exports in
energy
 Develop
Africa’s
hydrocarbon
resource
potential,
especially
natural gas
 Capture and
distribute flared gas
for export; (ii) Make
WAGP Operational ;
 Expedite trans-
Sahara gas pipeline
 Investment plan
for flared gas
capture;
 Volume gas
exported to
Ghana
 Feasibility study
for trans-Sahara
pipeline
Completed
Gas flowing to
Ghana since
mid-2010
Feasibility
study
completed; no
further
progress

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Phase 1
 SADC The main legislative steps were put in place in the period 1995-97: a regional
power pool (SAPP) was created in 1995 and signed by member countries (IGMoU) while
a framework for energy cooperation (Energy Protocol) was agreed in 1996 by member
countries. In 2007, the SAPP Inter-Utility Memorandum of Understanding (IUMoU) was
revised to allow membership by independent participants.
 ECOWAS The main legislative steps have been put in place. The West African Power
Pool (WAPP) was created in December 1999. In January 2003, the ECOWAS Energy
Protocol established a unified legal (and regulatory) framework for cross-border power
trading in West Africa. In July 2006, WAPP was formally inaugurated as a regional
organization of public and private electric utilities.
 ECCAS The basic steps towards establishing a legal framework have been taken. The
Central African Power Pool (CAPP) was established in January 2003. Two legal
agreements were signed by the member States in April 2003: (i) Inter-Government
Framework Agreement; (ii) Inter-Utility Agreement. However, virtually no interconnections
have as yet taken place in the ECCAS region.
 COMESA The basic legal steps towards establishing a regional electricity market in East
Africa were taken in February 2005 with the creation of the East Africa Power Pool
(EAPP). Seven member countries were signatories to the original intergovernmental
MOU36
while ten utilities from these countries have subsequently signed an inter-utility
MOU. A more complete legal and regulatory framework is currently under preparation.
Regulatory Framework for Regional Electricity Integration
A regional regulatory framework is recommended for regional electricity trade. The main
purpose of regional regulation is distinct from that of national regulation, where the primary
emphasis is on safeguarding the consumer. In contrast, a regional regulator’s goal is to
harmonize national regulatory standards between trading countries and, to the extent possible,
facilitate the further development of an electricity trading market. For this reason, it is
recommended that the regional regulator be independent of national regulatory agencies37
.
Progress being made to put in place a regional regulatory framework in the different regions
of Africa is as follows:
 SADC The Regional Electricity Regulators Association of Southern Africa (RERA) was
established as a formal association of member country electricity regulators in July
2002. However, it does not yet function as an independent regional regulatory body.
RERA's main role is to facilitate the harmonization of regulatory policies, legislation, and
practices and act as platform for effective cooperation among energy regulators within
the SADC region.
 ECOWAS In January 2008, ECOWAS established a regional regulator, the ECOWAS
Regional Electricity Regulatory Authority (ERERA). Some countries in ECOWAS do not
have national regulators while others are weak or lack the authority and capacity to
regulate cross-border exchanges effectively. Consequently, ERERA has two functions:
- as a regional regulator for cross-border exchanges; and
- as an agency providing assistance to national regulatory entities.
 ECCAS No regional regulatory framework exists.
 COMESA No regional regulatory framework exists. It is currently under preparation and
expected to be completed in 2011.
 COMELEC No regional regulatory framework exists.
36
Potential member countries of the EAPP are Uganda, Djibouti, Eritrea and Libya, with Libya due to become a
member on November 27, 2010.
37
USAID Sub-Saharan Africa’s Power Pools: A Development Framework. White Paper, May 2008

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Phase 1
Planning and Operational
Regional investment planning in electricity depends on (a) a regional institution- normally a
regional power pool- with the institutional capacity to prepare such a plan; (b) a clear
mandate from member nations for regional plans to be the main framework for national
investment decisions; and (c) the authority to enforce and implement the regional investment
plan.
In general, the more established the regional power pool, the greater the institutional capacity
to undertake regional planning. Systems operations capacity depends also on the stage of
development of a regional electricity market.
Progress made in each African sub-region in building up planning and operational capacity is
as follows:
 ADC A sound organizational framework for regional planning and operation of the
interconnected system has been in place for 15 years. SADC has overall responsibility for
approving regional plans. SAPP has responsibility for preparing regional investment
plans as well as for operation of the interconnected system. This includes power pool
operations based on short and long-term bilateral contracts between member nations
as well as a smaller proportion of trading operations involving short term, ‘day-ahead’
contracts in a competitive market (which has been as high as 10% of power exchanges
in this regional pool). The main weakness in regional planning is the lack of decision
making authority entrusted to the regional planning entities by national power planning
agencies- in practice, the national power utilities.
 ECOWAS A sound organizational framework for regional electricity planning has been in
place for a number of years to guide the development of the West Africa Power Pool
(WAPP). WAPP has responsibility for preparing priority generation and transmission
projects and securing financing for them. An initial ECOWAS Master Plan was prepared
in 1999. A ‘Revised’ Master Plan for the Generation and Transmission of Electrical Power’
was approved in 2005 and has provided the foundation for regional investment
programs in electric power in the ECOWAS region. Subsequently, an Emergency Power
Supply Security Plan was prepared in 2008; progress reports on the status of priority
investments are being prepared regularly. At present, limited electricity exchanges take
place between countries since there are few interconnected national systems. The
eventual goal is to integrate national power system operations into a unified regional
electricity market and to develop a regional transmission system owned and operated at
the regional level.
 ECCAS The Central African Power Pool (CAPP) has responsibility for implementing
regional energy policies and developing regional energy trade in the ECCAS region. In
2006, the first regional electricity market plan for the development of electricity
infrastructure was prepared, identifying priority investments and outlining an action plan
to build up the needed institutions. No system operational capacity is in place.
 COMESA The East African Power Pool (EAPP) is the newest of the regional power pools
and was created in 2005. It is a specialized technical institution under COMESA with
responsibility for planning and developing a regional electricity market. The preparation
of a regional master plan started in December 2009 and expected to be completed in
2011. The region has only limited interconnections and no system operation capacity.
 COMELEC A regional power pool organization has not been formed in the North Africa
region; nor have policy steps been taken to put in place a legal, regulatory, or planning
framework to promote regional trade. At the same time, electricity links have been
constructed across all North African countries and provide a direct link, via Morocco and
Spain, for electricity exchanges with the European network. Bilateral exchange
agreements also exist between adjoining North African countries though the volume of
electricity trade between these countries is very small.

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Phase 1
Commercial
There are several commercial issues that need to be addressed to enable electricity
exchanges to proceed, depending on the stage of development of the electricity market. The
two most basic steps are: (a) to define the ‘market rules’ of the electricity exchange i.e.
ensuring an equitable and transparent contractual framework for the different parties involved
in electricity trade; agreement also needs to be reached on pricing principles, standards for
metering, and mechanisms for resolving disputes. The second step is (b) ensure financial
solvency, or ‘creditworthiness’, of the two trading parties, normally national electric utilities and
governments for political risk guarantees.
 Market Rules In the SADC region, where there is extensive experience with electricity
interconnections, the ‘market rules’ governing different bilateral contracts for electricity
exchange are well established. In the ECOWAS region too, the commercial framework
for electricity exchanges have been defined and agreed to in different bilateral
contractual agreements for electricity exchange. In the ECCAS and COMESA regions,
there is very limited trade between countries and a commercial framework has yet to be
defined. However, in COMESA/EAPP, high priority is being given to defining the market
rules for commercial trade transactions and consultants are currently elaborating a
commercial framework suitable for electricity exchanges in this region.
 Utility Creditworthiness The ‘creditworthiness’ of most national electric utilities in Africa
is weak, which restricts their capacity to be ‘creditworthy’ counterparts under regional
investment projects. Electricity tariffs are used in most countries as a social policy
instrument with dubious efficiency, as it does not ultimately benefit the poor, who do not
have access to electricity. Still, it results in tariff levels below the cost of electricity
supply. The negative impact of low nominal tariffs is compounded by a culture of non-
payment in most countries in conjunction with large public sector accounts receivables.
The low level of effective (collected) tariff is the main reasons for the weak financial
position of most utilities. Issues of utility creditworthiness constrain the development of
a regional electricity networks and regional power plants in all regions since
governments have then to provide the power payment guarantee; these governments
are, in turn, non-creditworthy or have little capacity to provide suitable guarantees. As a
result, financing for regional energy projects has been limited to (a) grant financing from
development and international institutions, and (b) concessional financing granted to
Governments and pooled for regional projects. So far, there is no example of direct
financing of regional energy projects, either in the transmission or generation sectors.
Only capacity building projects have benefitted from direct grant financing at the
regional level.
3.2.3 Level of Achievement of Regional Gas Integration Objectives
In regard to the three main actions for gas trade development outlined in the African Union
Report, “Infrastructure Development for Africa’, prepared during the 12th
Ordinary Session in
February 2009, progress has been as follows.
Establish a Framework to capture and distribute flared gas to African countries
With the support of the World Bank, EU and a number of bilateral donors, good progress has
been made since 2000 in reducing the volume of flared gas in the West Africa region since
2000. The focus of the gas flaring reduction plan has been on Nigerian associated gas, which
was being flared offshore. Most of the flared gas is now being captured for (a) domestic power
generation in Nigeria and (b) West African Gas Pipeline.

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