39th UPDEA General Assembly Tangier, Morocco: October 30th, 2007

Presented by Engr. Amadou DIALLO

Secretary General, WAPP

WAPP Emergency Power Supply Security Plan

- 2 -

Presentation Outline

Background

Status of Power Supply in ECOWAS

Conclusions of Study

Recommendations of Study

Next Steps

- 3 -

Background

Scope of Study: Analyse electricity demand & supply balance in each state Review & comment on emergency plans and infrastructure Recommend Emergency Power Supply Plan for Member States

(Emphasis on regional solutions) Identify the required additional generating capacities and sites Propose the following:

Strategy, Implementation framework, Financing, and Roles of participants

- 4 -

Status of Power Supply in ECOWAS1:Supply Sources1

Half of the member states depend on Thermal sources for the majority of their supply.

Three (3) states depend on Hydro sources for majority of their supply.

Four (4) states depend on importsfor majority of their supply.

Actual Hydro

Actual Thermal

Import + Others

- 5 -

Status of Power Supply in ECOWAS2:Supply Sources2

Import + Others

5% Hydro31%Thermal

64%

- 6 -

661 688 3,004 1707,773

860 16 16 841

38,370

1,800 56 674-

10,000

20,000

30,000

40,000

50,000

GWh

Benin

Burkin

a Fas

o

Cote

d'Ivo

ire

Gambia

Ghana

Guinea

Guinea

Biss

au

Liber

iaM

ali

Nigeria

Seneg

al

Sierra

Leo

neTog

o

MetUnmet

Status of Power Supply in ECOWAS3:Demand-Supply Balance

Unmet46%

Met54%

- 7 -

Technical Causes Obsolete & unreliable equipment; Inadequate maintenance;

Operations inefficiencies; Insufficient Capacity; and, Non-availability of primary energy sources.

Financial Factors Low user tariffs; Low collection rates; and,

Inadequate financial standing of utilities.

Institutional Issues Planning & implementation responsibility; Bureaucracy in

decision-making; Sensitivity of tariffs to low income/wage levels; and, volatile petroleum prices limiting fuel purchases.

Status of Power Supply in ECOWAS4:Causes of Shortages

- 8 -

Initiatives based on Indigenous Resources

Hydro Guinea (Kaleta, Souapiti & Amaria) Liberia (Mano & St Paul River) Mali (Felou & Gouina) Kainji & Jebba Rehab. Nigeria (Mambilla)

Coal Nigeria

Petroleum Natural Gas

(Nigeria, Cote d’Ivoire & OMVS) Liquids

(Nigeria, Cote d’Ivoire)

Hydro Bumbuna Mount Coffee Bui Buyo

Coal Nigeria

Petroleum Natural Gas

(Nigeria, Ghana, Togo & Benin)

Liquids (All Member States)

Key National Initiatives Initiatives of Regional Significance

- 9 -

Criteria for Viable Regional Options

Economic Consideration: A viable sub-regional supply option must be economically cost

competitive (lower cost) when compared with local alternatives

Plant size: Capacity must exceed 100MW to have relevant export potential

Lead time: Implementation must preferably be less than 24 months

Compatibility with medium & long-term strategy Proposal must be consistent with the future needs of the sub-

region and use stable sources of fuel.

- 10 -

Criteria for Optimum Location of Facilities

Fuel Source Proximity to indigenous fuel sources, or Availability of adequate and stable fuel supply

Site Access and Facilities Road access for transportation of heavy plant and equipment Access to industrial infrastructure needed for plant operation

Interconnection opportunities for evacuation Proximity to load centers to reduce power transmission losses Availability of interconnection for export to neighboring states

Cooling water requirements Easy access to bodies of water suitable for plant cooling needs

- 11 -

Conclusions1

Generation needs of the sub-region are: Plants to produce Least Cost Power when operated at base load

to address power shortage situation of member states Plants to serve as Reserve under normal conditions to ensure

network reliability & security of supply. Plants to allow adequate Frequency Control/Regulation for the

successful synchronization of the networks in WAPP

Sub-regional generation projects that complement ongoing national initiatives are the best option for member states with significant interconnections.

- 12 -

Conclusions2

The order of merit for least-cost generation are: Coal-fired Steam Turbine Plants; where coal is available Natural gas-fired Combined Cycle plants; if gas is

available. Steam or Diesel plant fired with Heavy Fuel Oil

Possible locations for sub-regional plants are: Alagbado in Lagos, Nigeria Maria Gleta in Benin. Lome in Togo Tema in Ghana Aboadze in Ghana Abidjan (Vridi) in Cote d’Ivoire OMVS System

- 13 -

Conclusions3

Until power links are built to connect the 5 isolated member states, regional approach cannot be adopted. Only national initiatives can mitigate power shortages.

The rehabilitation of existing hydro plants for which large portions of capital costs are already sunk, such as Kainji and Jebba in Nigeria, and Mount Coffee in Liberia which has been vandalized, could bring into service the production capacity that has otherwise been unavailable at relatively low incremental cost.

The completion of the ongoing Bumbuna HEP would also bring into use a source of production that had hitherto not been available.

- 14 -

Recommendations

Build 3 plants at locations with access to natural gas. 400MW combined cycle plant at Maria Gleta in Benin. 400 MW combined cycle plant at Aboadze in Ghana. 150 MW combined cycle plant within OMVS.

Expedite implementation of the WAPP Priority Projects to upscale interconnectivity.

In interim, deploy steam or diesel capacity running on heavy fuel oil for non-interconnected states.

Accelerate completion of the rehabilitation of Kainji, Jebba and Mt. Coffee dams, and completion of the Bumbuna dam.

- 15 -

Rationale and Benefits

Economy-wide Benefits :- Poverty Reduction, Economic growth& Development

Direct Cost Savings :- Reduced cost of production for un-connected States

from the recommended local alternatives. Regional options provide least cost of supply.

Vital Ancillary Service to WAPP System :- Plants to provide Secondary Reserve Margin. Plants support network frequency control

Consistency with Objectives of Stakeholders :- Governments, Utilities, Development Partners and

Regional Bodies.

- 16 -

Next Steps of Plan -1-

Submit Plan to WAPP and ECOWAS authorities for adoptionImplement Near-term Mitigation Actions

Support where possible, initiatives already being pursued by individual Member States

Deploy in the interim, whilst the other more optimal actions are being pursued, mobile generating capacity running on suitable fuels for the non-interconnected states and for other member states with acute shortages.

Implement Optimum Strategic Actions Implement regional power plants. Could be through the creation of SPCs

under the framework of Public Private Partnerships. Implement pre-investment studies for remaining WAPP Priority

Interconnection Projects

Thank You for your Attention

WAPP Emergency Power Supply Security Plan