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TO BETTER ELECTRIFY TOGO
This article is a part of course works related to World Bank Group Massive Open Online Course o...
2
The cost of energy and communications since the 1990s, as well as market weakness and limited access to
funding, are ser...
3
The government has to leverage development assistance and interest in renewable energy to bring in
additional financial ...
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WBG_MOOC_F4D01x_Energy_in_Togo_Final_project_29march2017

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In Togo, the cost of energy and communications since the 1990s, as well as market weakness and limited access to funding, are serious obstacles to the growth of towns and cities and to the country’s structural transformation. These constraints, which must be removed, stem mostly from a land tenure system that has failed to adapt over the past half-century to the growth of urban areas and market demands. Most of the clean electricity produced in Togo comes from thermal technologies, but Togo also has two hydroelectric plants (The Nangbeto Dam of 65 MW and Kpime hydroelectric power plant of 16 MW). Two third of the Togolese population live in rural areas and consume less than 10% of the country's electricity. To encourage a balanced development of the country and to improve the living conditions of both the urban and rural populations, the new energy policy guidelines must focus on the development of renewable energy sources (solar, wind, biogas and hydropower systems). Each of these energy sources has greater or lesser energy potential, but as of yet all of them are largely unexploited.

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WBG_MOOC_F4D01x_Energy_in_Togo_Final_project_29march2017

  1. 1. 1 TO BETTER ELECTRIFY TOGO This article is a part of course works related to World Bank Group Massive Open Online Course on Financing For Development - Unlocking Investment Opportunities. This course has been an eye opener for me as an engineer to realise better the magnitude of importance related what I do in my line of work. For this final project, the course participants are expected to choose a fragile country to promote and to voice what the country needs to be further developed and established to achieve a more sustainable future. The reason for me to choose Togo is that I am currently the Resident Engineer for the execution of an 188 km, 225 kV overhead power line and a ten hectares 330/225 kV substation for an interconnection project between Ghana and Burkina Faso which are financed by the World Bank and AFD and both these countries (Ghana and Burkina Faso) border with Togo. In this framework, last year I paid a visit to Togo and I was overwhelmed by this country’s needs and at the same time possibilities for progress, growth and development, and by its people eagerness to achieve them. The World Bank says around 72 percent of people in Togo live with less than $2 per day. The World Bank's 2015 “Doing Business” ranking showed Togo rose by 15 places from the previous year to 149, one of the top 10 risers. This puts it well above regional major power Nigeria and on a par with Ivory Coast and Benin, although neighbor Ghana remains far ahead. Economic growth in Togo, 5.5 percent last year, is expected to rise towards 6 percent over the next two years. The last few years Togo has made some significant initial economic successes such as the construction of a new airport terminal and especially a new port which Togo sees as port serving not only its own needs and those of landlocked Mali, Niger and Burkina Faso but also the rest of the Gulf of Guinea since at 15.5 meters deep, it has the capacity to berth ships carrying as many as 7,000 containers. Better security in Togo has lured some shipping away from Benin and Nigeria, whose shores are threatened by pirates, and in the capital, new roads, neat lines of lamp posts and mushrooming buildings are signs of investment. The road linking Togo to Ghana to the west and Benin to the east is smooth and bustling, but away from main arteries, however, roads are eaten up by potholes and residents sell food at stalls next to piles of debris. The figure on the right shows a typical food stall we can find in Togo. (a) Map of Togo (b) Food stalls
  2. 2. 2 The cost of energy and communications since the 1990s, as well as market weakness and limited access to funding, are serious obstacles to the growth of towns and cities and to the country’s structural transformation. These constraints, which must be removed, stem mostly from a land tenure system that has failed to adapt over the past half-century to the growth of urban areas and market demands. Most of the clean electricity produced in Togo comes from thermal technologies, but Togo also has two hydroelectric plants (The Nangbeto Dam of 65 MW and Kpime hydroelectric power plant of 16 MW). Two third of the Togolese population live in rural areas and consume less than 10% of the country's electricity. To encourage a balanced development of the country and to improve the living conditions of both the urban and rural populations, the new energy policy guidelines must focus on the development of renewable energy sources (solar, wind, biogas and hydropower systems). Each of these energy sources has greater or lesser energy potential, but as of yet all of them are largely unexploited. The path of development that Togo has to fix to ensure that other areas can follow suit is the energy sector with particular attention to: 1. The exploitation of renewable energy sources and in particular in solar, wind and bagasse as viable sources to offset the costly polluting fossil fuel use. 2. The construction of small hydroelectric power plants will generate low-cost electricity not only by using minor sources that will respond to local needs, but combined with a better organized and improved national gridwill contribute to its better use/distribution at national level. 3. Giving incentives to industries and private enterprises that have already invested in the energy sector for their own needs (but with generators that use high cost fossil fuel) enabling them to invest in renewable energy as well. Figure on the left shows typical textile industry that will greatly benefit from more accessible electricity. (c) Nangbeto dam (d) Example of Wind Farm (e) Example of Textile Industry
  3. 3. 3 The government has to leverage development assistance and interest in renewable energy to bring in additional financial resources by: 1. Offering incentives in order to promote the private capital and private investors such as banks and pension funds to invest into public-private structures and foreign creditors financing public projects by lowering the withholding tax. This may demand changes in legislation by the government. 2. Ensuring a stronger, qualified and transparent administration, simple and efficient tax and revenue systems, and better coordination to address international tax issues and illicit finances, and 3. Improving the efficiency of the public corporates and the public expenses and the social spending: this last one especially has to be combined with better targeting. Aspects of sector reform and institution-building that should be prioritized: 1. Implement energy policies that will make production of renewable energy a priority. 2. Strengthen and increase the efficiency of the National Electrical Energy Company (CEET). 3. Improving metering, billing and disbursements and find ways to enforce a system that make these work. 4. Ensure that public institutions responsible for the power sector personnel is hired in a transparent process and receives a suitable training that will enable them to design and implement/monitor all energy policies. References: Actualvisit in Togoin September 2016; Various Core Readingsfrom Financing For Development – Unlocking Investment Opportunities (F4D01x of WBG, March2017) ; InternationalFinance Corporation, and World Bank. Doing Business: Measuring business regulations. 2005. Archived Web Site. Retrievedfrom the Library of Congress, https://www.loc.gov/item/lcwa00095490/; Various information from Compagnie EnergieElectrique du Togo(http://www.ceet.tg); Figure (a): Wikimedia Commons; Figures (b) and (c) : https://freewheely.com/2013/10/togo/ Figure (d): Credit: GraceWu/Berkeley Lab (https://www.sciencedaily.com/) Figure (e): http://www.dw.com/en/african-textile-industry-on-hold/a-16127770

In Togo, the cost of energy and communications since the 1990s, as well as market weakness and limited access to funding, are serious obstacles to the growth of towns and cities and to the country’s structural transformation. These constraints, which must be removed, stem mostly from a land tenure system that has failed to adapt over the past half-century to the growth of urban areas and market demands. Most of the clean electricity produced in Togo comes from thermal technologies, but Togo also has two hydroelectric plants (The Nangbeto Dam of 65 MW and Kpime hydroelectric power plant of 16 MW). Two third of the Togolese population live in rural areas and consume less than 10% of the country's electricity. To encourage a balanced development of the country and to improve the living conditions of both the urban and rural populations, the new energy policy guidelines must focus on the development of renewable energy sources (solar, wind, biogas and hydropower systems). Each of these energy sources has greater or lesser energy potential, but as of yet all of them are largely unexploited.

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