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RENEWABLES READINESS ASSESSMENT 2012

SENEGAL

About IRENA

The International Renewable Energy Agency (IRENA)promotes the accelerated adoption and sustainable use of allforms of renewable energy. IRENA’s founding members wereinspired by the opportunities offered by renewable energy toenable sustainable development while addressing issues ofenergy access, security and volatility. Established in 2009, theinter-governmental organisation provides a global networkinghub, advisory resource and unified voice for renewable energy.

www.irena.org

The designations employed and the presentation of materials hereindo not imply the expression of any opinion whatsoever on the partof the Secretariat of the International Renewable Energy Agencyconcerning the legal status of any country, territory, city or area orof its authorities, or concerning the delimitation of its frontiers orboundaries. The term “country” as used in this material also refers,as appropriate, to territories or areas.

RENEWABLES READINESS ASSESSMENT 2012

SENEGAL

Table of Contents

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LIST OF ACRONYMS 6LIST OF FIGURES 8LIST OF TABLES 8LIST OF IMAGES 8ACKNOWLEDGEMENTS 9

FOREWORD 11PREFACE 13EXECUTIVE SUMMARY 15

I. INTRODUCTION 19

Background 19The Renewables Readiness Assessment 22Developing the methodology 22Testing the methodology in Senegal 24Objectives 24

II. ENERGY AND RENEWABLE ENERGY CONTEXT 25

The regional context 25Overview of the energy sector in Senegal 25Renewable energy in Senegal 31Key energy stakeholders 34Energy policy and regulatory framework 36Financing and investment 40

III. MARKET DEVELOPMENT BY SECTOR 43

A. On-grid electricity 43Findings from the RRA 45

B. Off-grid applications 48Decentralised rural electrification 48Motive and thermal applications 49Findings from the RRA 51

C. Biofuels for transport 53Findings from the RRA 53

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IV. RECOMMENDED ACTIONS 55

V. BEST PRACTICES AND FUTURE COOPERATION 57

Identified examples of good practice 57Good practice demonstration 1: 57Business models used for rural and off-grid electrificationGood practice demonstration 2: 58Legal and institutional frameworkFuture cooperation 59

VI. REFERENCES AND BIBLIOGRAPHY 60

VII. ANNEX: DETAILED LIST OF RECOMMENDED ACTIONS 63

Action 1: Adapt the rules of intervention for the regulator 63in the specific case of small electricity producers (ERILS)Action 2: Finalise and sign the implementing decrees of 64the framework laws on renewable energyAction 3: Finalise policies on the integration of electricity 65generated from renewable sources onto Senelec’s grid, and define the associated technical and capacity-building requirements for integrationAction 4: Promote small-scale production of biodiesel 66Action 5: Improve strategy for the institutional, legal and 67regulatory conditions and modalities for utilising land in support of the national biofuels strategyAction 6: Establish policy and institutional mechanisms to increase 68private sector involvement in re-manufacturingAction 7: Establish institutional capacity and conditions for 70improving O and M (Operation and Maintenance) of renewable energy technologiesAction 8: Elaborate and implement a strategy for 72comprehensive mapping of resources in key areas

S E N E G A L

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AfDB African Development BankANCs National Rural Councillors AssociationANDES National Agency for Solar Energy Development APANPP Association for African Non-Oil Producer CountriesAPIX Agency for Investment PromotionASER Rural Electrification AgencyASN Senegalese Association for StandardisationBOO Build Own OperateCERER Centre for Research and Studies on Renewable EnergyCF Carbon FundCIER Interministerial Committee on Renewable EnergyCIMES Intersectorial Committee for the Implementation of Synergies

between Energy and other Strategic Sectors CNB National Biofuel CommitteeCRSE Commission de régulation du secteur de l’électricitéCSS Senegalese Sugar CompanyDGIS Netherlands Directorate-General for International CooperationDSRP Document of the Strategy for Poverty AlleviationECOWAS Economic Commission of West African StatesECREEE ECOWAS Centre for Renewable Energy and Energy EfficiencyERIL Rural Electrification through Local InitiativesFABER-ABERF African Biofuels and Renewable Energy FundFIT Feed-in TariffGOANA Great Agricultural Offensive for Food and AgricultureGW GigawattHV/MV/LV High Voltage/ Medium Voltage/Low voltageICS Industries Chimiques du SénégalIEA International Energy AgencyIPP Independent Power ProducerISRA Senegalese Institute for Agricultural ResearchIRENA International Renewable Energy AgencyJICA Japan International Cooperation AgencykV KilovoltkW Kilowatt

List of Acronyms


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LPDSE Lettre de Développement du Secteur de l’EnergieLPG Liquefied Petroleum GasMC Ministry of CommerceMDG Millennium Development Goal MER Ministry of Renewable EnergyMEF Ministry of Economy and FinanceMoE Ministry of EnergyMW MegawattNBC National Committee for BiofuelsNGO Non-Governmental OrganisationO and M Operations and MaintenanceOMVG Organisation for the Development of the Gambia River BasinOMVS Organisation for the Development of the Senegal RiverPASER Rural Electrification Action PlanPERACOD Programme to Promote Rural Electrification and

a Sustainable Supply of Domestic FuelPPP Public Private PartnershipPREDAS Regional Programme for Households and Alternative Energies in the SahelPRS Regional Solar ProgrammeRE Renewable EnergyREF Rural Electrification FundREVA Retour Vers l’AgricultureRRA Renewables Readiness AssessmentSAR Société Africaine de RaffinageSENELEC Senegalese National Electricity CompanySPEC Sustainable Power Electric CompanyTPES Total Primary Energy SupplyWAEMU West African Economic and Monetary UnionVAT Value Added TaxWAPP West African Power PoolWMO World Meteorological OrganizationWp Watt Peak

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LIST OF FIGURES

Figure 1 Senegal energy profile 28Figure 2 Evolution of total primary energy supply 29Figure 3 Energy sources used 29Figure 4 Senegal oil bill evolution 30Figure 5 Electricity use per capita for 2008 31

LIST OF TABLES

Table 1 Types, location and potentials of energy resources 32

LIST OF IMAGES

Image 1 Traditional use of biomass in Senegal 30Image 2 National electricity grids and RE potential 33Image 3 Work in progress at SPEC's solar modules 46

mounting facilityImage 4 Senegalese sugar production company 47

in Richard-TollImage 5 Sine Moussa solar wind diesel 49

hybrid power plantImage 6 Solar water heater in rural area in Senegal 50Image 7 Installation of a small wind turbine 51

at the University of DakarImage 8 Molasses lake at Senegalese 53

Sugar Company (CSS)


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Acknowledgements

This Renewables Readiness Assessment report was prepared by theInternational Renewable Energy Agency (IRENA) working in closecollaboration with the Government of Senegal. The InternationalInstitute for Sustainable Development (IISD) provided valuable support.SEMIS Consult facilitated the groundwork. H.E. Louis Seck, formerMinister of Renewable Energy, Senegal, was involved from the outset ofthe project and continued to provide helpful insights.

We wish to thank the following experts, in alphabetical order, for theirinsights and constructive guidance during the peer review process:Abeeku Brew-Hammond (Board of the Energy Commission, Ghana), BahSaho (ECOWAS Regional Centre for Renewable Energy and EnergyEfficiency, Cape Verde), Ismael Lo (Ministry of Energy, Senegal), HarunaGujba (African Climate Policy Centre, Ethiopia), Sambou Kinteh(Development Management Consultants International, Gambia).

Karmic Design provided the design and layout.

Comments or questions about this Renewable ReadinessAssessment report can be sent to [email protected],[email protected], or to [email protected].

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10 R E N E WA B L E S R E A D I N E S S A S S E S S M E N T

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THE RENEWABLE ENERGY SECTOR occupies an important place in the economicdevelopment strategy of Senegal. Our energy policy aims primarily at diversifying andreducing dependence on imported petroleum products by increasing the share of renewableenergy and biofuels in the country’s energy mix by at least 15% by 2020.

That is why for nearly two years now Senegal has been reviewing the technically andeconomically exploitable potential of renewable energy sources for electricity production,and also determining the technical, economic and financial factors that can ensure people'saccess to modern energy services.

This study has led to the establishment of a legislative and regulatory framework conduciveto the development of electricity production from renewable energy sources. Institutionalreform has been in progress since March 2012 with the creation of an agency dedicatedexclusively to the promotion of renewable energy.

It is expected that this new structure will lead to important activities including thedevelopment of synergies necessary to allow more effective collaboration between publicsector research actors and the private sector; the establishment of appropriate incentivesto make equipment and the purchase of green electricity more accessible; the stimulationof self-generation of renewable-based electricity by households; the identification of internalresources and financial mechanisms that can support alternative energies; and supportingthe development of small- and medium-sized enterprises (SMEs) and industries (SMIs) inthe local production of components specific to renewable energy technologies (RETs).

The execution of this vast project requires multilateral as well as bilateral cooperation.Therefore we welcome the initiative of the International Renewable Energy Agency (IRENA),which in November 2011 enabled Senegal to host the pilot phase of the RenewablesReadiness Assessment.

Foreword

S E N E G A L

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This project has enabled us to highlight our country’s strengths, as well as its weaknesses,concerning the rapid deployment of renewable energy across the various network options,off-grid applications and the use of biofuels. The actions identified in this evaluation willmake, I believe, a significant contribution to the deployment of renewable energy. Puttingall the measures identified into practice could lead our country to effective diversificationof its sources of energy.

The Government of Senegal is confident that, with international cooperation, particularlywith IRENA, our country will soon reach its goals of promoting renewable energies tobecome a model in the ECOWAS region.

Finally, I reiterate here, that all our national experts are available to assist other countries inthe conduct of their own RRAs and confirm my continued support for IRENA’s mission.

Aly Ngouille NDIAYE

Minister of Energy and Mines, Senegal


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The First Renewables Readiness Assessment (RRA) – presented here by Senegal – is animportant milestone for IRENA, whose mission is to promote the widespread and increasedadoption and sustainable use of all forms of renewable energy.

The RRA is a central pillar of IRENA’s work and is a country-driven process supported byIRENA providing an opportunity for countries to engage in a national dialogue with allrelevant stakeholders in order to pinpoint renewable energy drivers, comparative advantagesas well as areas of improvement to set concerted actions needed to be taken to enable thedevelopment and scale-up of renewables.

This will allow IRENA to identify and provide country-specific support and advice to theparticipating countries. More broadly, it will also generate knowledge of good practices andcooperation between countries, which are essential to increasing deployment.

Senegal, in keeping with its strong and consistent support of IRENA’s mission, kindlyvolunteered to host the first country pilot study. The process and details of RRAs willnecessarily evolve with experience. We thank Senegal for its generosity in hosting this firststudy. The country’s engagement and input have gone beyond what we could have expectedand IRENA is grateful for this important contribution.

In common with all countries, the RRA found areas where Senegal had examples of goodpractice that could be shared with others, areas where readiness was high and other areaswhere readiness could be improved in the short- to medium-term, under initiatives led bySenegal. The report now presented focuses on these actions and examples of good practice.

IRENA hopes that the RRA will enable Senegal to increase its deployment of renewables.We offer our continuing support, across all our functions and work programmes, to Senegalin implementing the actions identified.

Adnan Z. Amin

Director General, IRENA

Preface

S E N E G A L

14 R E N E W A B L E R E A D I N E S S A S S E S S M E N T

15S E N E G A L

BACKGROUND

Senegal is a West African country with a population of 12.6 million, aGDP of USD 14.3 billion, and an estimated economic growth rate of 4%in 2011. The country’s energy sector is characterised by a growingdemand for modern energy services and a lack of reliable electricitysupply. The electric system is based on inefficient oil-based powerplants, now operating beyond their initial design life span, and suffersrecurring power outages. Traditional biomass accounts for 54% ofSenegal’s primary energy supply, oil products for 40% and otherresources, including coal and hydro power, for the remaining 6%. All oilproducts are imported, making Senegal’s trade balance very vulnerableto oil price volatility.

Senegal has actively pursued reform policies in the energy sector, witha strong focus on promoting renewable energy. The current energypolicy is reflected in the “Lettre de Développement du Secteur del’Energie (LPDSE 2008),” a government strategy document building onthe lessons learned from previous energy policies. The emphasis onrenewable energy has resulted in the adoption of two laws aiming atincreasing the cumulative share of renewable energy and biofuels to atleast 15% energy mix by 2020.

As a further commitment to renewable energy, Senegal joined handswith the international community and signed the statute of theInternational Renewable Energy Agency (IRENA) during its foundingconference in 2009. Resulting from IRENA’s engagement with Africangovernments, the Renewables Readiness Assessment was identified asa crucial step for a better understanding of the opportunities andconstraints in Africa, and as a collaborative process that will provide a

Executive Summary


rapid, objective assessment of the status ofrenewable energy opportunities andidentify pathways to address gaps. Senegalhosted the first country RenewableReadiness Assessment pilot study.

RRA IN SENEGAL

The Renewables Readiness Assessment inSenegal revealed that many steps havebeen taken towards liberalising the nationalelectricity market. Although SENELEC, thenational utility, still enjoys a monopoly fortransmission and distribution, generationhas been opened up to independent powerproducers and conditions for self-gen-eration have been simplified. The onlyrenewable-based electricity injected intothe grid is from the Manantali hydro powerplant in Mali, as part of the Western AfricanPower Pool project.

Funding for research and development inthe renewable energy sector remainsinsignificant despite the presence ofresearch centres and institutes dedicatedto renewables and the creation of the firstWest African solar PV assembler. Senegalcould, therefore, build on these assets toaccelerate the assessment of the technicalrenewable energy potential in order tofacilitate investment and involvement ofthe private sector in specific projects.

In 2011, Senegal’s national access to

electricity was estimated at 40%, with anurban electrification rate of 70% and ruralelectrification of 22%. The objective is toincrease national access rate to 75% by theend of 2012. All the necessary conditionsfor the rapid expansion of ruralelectrification are in place, with theadoption of a concerted programme ofrural electrification (PASER) and thecreation of a dedicated national ruralelectrification agency (ASER). In addition,concessions for rural electrification havebeen successfully tendered and awarded tonational and international bidders and arebeing complemented by small localprojects. Both approaches include ren-ewables as one of the most appropriatesolutions.

Significant experience with IndependentPower Producers (IPPs) generatingelectricity for the national grid (fromconventional sources) and the opening ofthe power-generating sector to renewablesources through the LPDSE 2008 shouldhave increased the involvement ofrenewable-based IPPs. However, nomechanism exists yet to set appropriatefeed-in tariffs (FiTs) and Power PurchaseAgreements (PPAs) from renewable-basedelectricity generation for the grid. Thepromulgation of the Renewable EnergyLaw’s implementing decrees, whichprovide “must run” status to renewables,and the design of suitable FiTs constitutes

The Renewables Readiness Assessment was identified as a crucial step for a betterunderstanding of the opportunities and constraints in Africa, and as a collaborativeprocess that will provide a rapid, objective assessment of the status of renewable

energy opportunities and identify pathways to address gaps.

Senegal hosted the first country Renewables Readiness Assessment pilot study.

R

17S E N E G A L

an important milestone to expand on-gridrenewable-based electricity generation.

Licensing, operation and sales of electricityare regulated by the RegulatoryCommission of the Electricity Sector, whichis also mandated to approve tariffs forelectricity supply, regardless of theinstallation’s size. This process is time-consuming and acts as a barrier to theimplementation of small local projects, thuslimiting their expansion. A measure toalleviate this constraint could includeexempting installations below a certaincapacity (e.g., below 100 kW) fromrequiring regulatory body approval forproposed tariffs, and instead allowapproval at the local and community level.The decentralisation of regulatory powers,following decentralisation at governmentallevel, and associated capacity building atthe local level to respond to tariffproposals, could also assist the process.

The biofuels sector, although relativelyrecent in Senegal, is carried by a strongpolitical will to expand feedstockproduction from both sugarcane andjatropha in order to partially meet domesticfuel demand. However, the complex systemof land tenure and the lack of agro-ecological zoning assessments forfeedstock production could presentsignificant barriers for the development ofbiofuels feedstock if not carefullyintegrated into the biofuel policy andregulatory framework.

KEY RECOMMENDATIONS

As a result of the Renewables ReadinessAssessment process in Senegal, theGovernment of Senegal identified thefollowing key recommendations tostimulate the deployment of renewableenergy in the country. The Government ofSenegal should:

w Detail out a comprehensive strategyfor mapping renewable energypotentials in key areas including theirtechno-economic feasibility.

w Facilitate grid integration of elect-ricity generated from renewablesources by enacting the RenewableEnergy Law, implementing decreesthat provide the necessary condi-tions, guidelines and tariffs toincorporate renewable-based elect-ricity to the grid.

w Consider restructuring the insti-tutional, legal and regulatory frame-work for utilising land for biofuelsproduction and adapt the rules ofintervention of the regulator in off-grid small-scale renewable energyprojects.

w Identify the conditions needed toincrease private sector involvement,especially for operation and mainte-nance, in the renewable energysector.

18 R E N E W A B L E R E A D I N E S S A S S E S S M E N T18

196722 km2

GEOGRAPHICAL AREA

DakarCAPITAL CITY

12.6million

POPULATION

2.6%POPULATION GROWTH RATE

(ANSD,2011)

>35%OF FOREIGN EXCHANGE

EARNINGS USED FOR OIL IMPORT

SENEGAL

19S E N E G A L

BACKGROUND

Senegal is a country in Western Africa, bordered by the Atlantic Oceanand Mauritania, Mali, Guinea, Guinea-Bissau and Gambia. Senegal’seconomy grew at an average rate of 4% in 2011, with nearly 77.5% of thepopulation employed in the primary sector, and is expected to grow by4.2% and 4.7% respectively in 2012 and 2013 (ANSD, 2011).

Senegal currently uses more than 35% of its foreign exchange earningsfor oil imports, making it highly vulnerable to oil price fluctuations(Ministere des Energies Renouvelables, 2011). In 2008, Senegal decidedto promote the use of other energy sources and has restructured thecountry’s national energy policy by considering the development ofrenewable energy as a major focus area. Institutional, legislative andregulatory structures were therefore strengthened to support theobjectives laid out in the National Energy Policy. This high politicalcommitment to institutional reform and policy positioned Senegal asthe leader in renewable energy promotion in the Economic Commissionof Western Africa [ECOWAS] region and the country was tasked todevelop solar energy projects in the sub-region by Heads of State andGovernment in the ECOWAS Summit held in July 20101. In 2009, Senegalalso joined hands with the international community to support thefoundation of the International Renewable Energy Agency (IRENA).

Because of Senegal’s strong commitment to renewable energy,ECOWAS proposed that it should be chosen as one of the pilot countriesto field-test the methodology being developed by IRENA for theRenewables Readiness Assessment (RRA) process. Senegal hosted thefirst pilot study from 14-18 November 2011 and this document, the finalreport from that study, contains the insights gained from interviews andworkshop sessions with key stakeholders, together with findings fromthe published literature to summarise the status of the country’s policyand institutional framework before proposing short- and medium-termactions for Senegal.

I. Introduction

1 The 38th Summit of the Authority ofHeads of State andGovernment ofECOWAS, held on 2 July in Sal, CapeVerde, adopted aSpecial Resolutionestablishing theECOWAS SolarCommission (ESC)with the objective todevelop large-scalesolar plants tocomplement theregion’s energy needs.Under theChairmanship of H.E.Me Abdoulaye Wade,President of theRepublic of Senegal,ECREEE has beendesignated theimplementing agencyfor the ESC.


IRENA became a full-fledged internationalorganisation in April 2011, with a mandateto promote increased adoption andsustainable use of all forms of renewableenergy. With 104 Members in the Agency,48 signatories and 7 applicants formembership, IRENA has the global reachto act as the focal point for internationalcooperation and to underpin the effort toincrease the deployment of renewables inthe energy mix of countries around theworld. Through its work programme,IRENA aims to position itself as an inclusiveglobal platform to stimulate policydialogue, and develop strategies to assistcountries for their necessary transition to arenewables-based energy future.

In July 2011, more than 25 Ministers ofEnergy and Heads of Delegation attendedthe IRENA High-Level African ConsultativeForum on Partnership on AcceleratingRenewable Energy Uptake for Africa’sSustainable Development, where they

discussed the vision and direction forIRENA’s work in Africa. The communiqueissued at the end of the forum urgedIRENA to inter alia “better understand theopportunities and constraints in our cou-ntries and regions by mapping ‘RenewableEnergy Readiness’, a collaborative processthat will provide a rapid, objective ass-essment of the status of renewable energyopportunities, and identify pathways toaddress gaps.”

RRAs are now an integral component ofthe IRENA Work Programme and areincluded in the “Promotion of regionalconsensus to adopt renewable energythrough strategic intervention”. The RRAprocess is designed to provide input tonational and regional renewable energyaction plans and bring together partnerswho can support the implementation ofaction plans, including providing solutionsto energy access.

RRARENEWABLES READINESSASSESSMENT

R Rapid assessment of the conditionsnecessary for the installation and ongoingoperation of renewable energy facilities ina country.

R Covers all RE sources and services ofpreference to the country’s nationalproduct.

R The RRA report is a product of thecountry, and the actions and insights in itcome from a country-owned process.

IRENAINTERNATIONAL RENEWABLEENERGY AGENCYAS OF N0VEMBER 2012

104 Members of the Agency

55Signatories/applicants for membership

159Total participation (158 states plus the European Union)

48Participating states in Africa

21S E N E G A L

THE RENEWABLES READINESSASSESSMENT

The RRA is a country-driven process thatfacilitates dialogue between stakeholders.It aims to help IRENA Member Statesachieve their aspirational goals throughadopting the appropriate renewableenergy technologies by assessing thecurrent situation and identifying the gaps,and drawing concrete and prioritisedaction plans to be implemented within adetermined timeframe, while specifyingthe responsible stakeholders and clarifyingtheir roles. The process also facilitatescomparisons and case studies, and enablesthe useful matching of attributes ofrenewable energy, with opportunities forits deployment.

The RRA comprises a process and amethodology that includes completing aset of templates and a final report. TheRRA methodology covers all forms ofenergy services (transport, heat, electricityand motive power), and all renewableenergy sources, with countries selectingthose of particular relevance. The RRA alsobrings in strong country stakeholding asthe processes designed to be conducted bynational governments, allowing countriesto obtain a comprehensive overview of the

conditions for renewable energy from theirown national perspective. All processesand documentation are led by the countryand derive inputs from discussions withstakeholders, facilitated by the countryfocal point with the assistance of IRENA.The resulting report is therefore a nationalone, developed and owned by the country.This sets the process and methodology ofthe RRA apart from other assessmentprocesses led by international organi-sations. IRENA offers its support during theRRA, but it is the actions and insightsdeveloped through a country-ownedprocess that provide the key to rapiddeployment.

RRAs facilitate a coordinated approach andthe setting of priorities that can informdiscussion with bilateral and multilateralcooperation agencies, financial institutionsand the private sector regarding theimplementation of actions and initiativesemerging out of the RRA. IRENA’s backingof the RRA process offers countries accessto a global network with the capacity tofollow up on actions and facilitate anexchange of experiences. IRENA can alsofacilitate implementation of the follow-upactions, where necessary, after specificrequests from the country or regionalentity.

The Renewables Readiness Assessment (RRA) is designed to define a detailed list ofcriteria considered necessary for the installation and ongoing operation of renewableenergy facilities. Application of this framework to individual countries will provide acomprehensive analysis of the presence, or otherwise, of enabling conditions for thedevelopment of renewables. Crucially, this analysis should take into account how therenewables policy of the country in question contributes to its other policy objectives.

R

THE RRA METHODOLOGY

The methodology adopted for the country-level RRA has a number of distinct stagesas shown in the RRA methodology chart.

TESTING THE METHODOLOGY IN SENEGAL

The pilot study in Senegal was undertakento field-test the draft methodology for theRRA, obtain feedback from key stake-holders in Senegal on the criteria beingused to assess the readiness, and furtherimprove the methodology. An extensiveliterature review of recent relevant studieswas also undertaken.

Stakeholder mapping identified key stake-holders in government departments and

public sector bodies, financial institutions,research bodies, NGOs and the privatesector. These key stakeholders arehighlighted in Section 2.4. This research setthe stage for a mission to Senegal tocomplete the on-ground assessmentprocess. The mission comprised the follow-ing activities:

1. An introductory meeting with theMinistry of Renewable Energy (MER)and affiliated institutions provided anintroduction to the project and opp-ortunities to share knowledge withkey stakeholders.

2. A site visit to Sine Moussa, a villagethree hours’ drive from Dakar, wherea hybrid power plant of 20 kW (solar5 kW, wind 5 kW and diesel 10 kW)has been used to electrify villagedwellings and provide street lighting.

3. A series of fact-finding interviewswith stakeholders from the renew-able energy sector.

4. Working sessions with employeesfrom the MER and other stakeholdersto fill in RRA templates for differentrenewable energy resources andservices.

5. A final workshop with stakeholdersheld on the final day of the mission,aimed at presenting findings fromthe week, eliciting further feedbackon these findings, and developingthe set of actions that form the laststage of an RRA.

As stated in the introduction, theexperience gained from the pilot RRAassessment conducted in Senegal willassist further regional and country levelassessments, and other work in partnercountries.


SENEGALESERRA MISSION

R Introductory meeting with MER and affiliated institutions

R Site visit to small wind-solar-diesel hybrid power plant in Sine Moussa

R Fact-finding interviews with keystakeholders

R Working sessions to fill RRA templates withemployees of MER and other stakeholders

R Final workshop with stakeholders topresent findings, obtain feedback and todevelop a set of actions

OBJECTIVES

R Assess and review the statusof energy and RE in Senegal

R Approaches for developing institutionalstructures for RE

R Framework for providing access to RER Technology and Infrastructure

for delivering energy and RER Opportunities and Barriers

for viable business models for RER Recommend a Set of Actions

to address identified issues

23S E N E G A L

Renewable ReadinessAssessment Methodology

STEP 1A PREPARATORYWORK

R Setting up of the RRA teaminitiated and led by NationalGovernment

R Contextualisation of RRAR Identification of key

stakeholders, RE projectsand programmes

R Roadmap and timeline forassessment

STEP 1BPLANNING THE PROCESS

R Identification of appropriateservice–resource pairs

R Preparation of list ofinterviewees, appointmentsand tentative questionnairefor bilateral meetings

Scoping

STEP 2AINITIAL PLENARYSESSION

R Introductory session led byhigh-level governmentofficial (e.g., Minister of RE)

R Discussion on status,potential and barriers toscale up RE

R Description of how toconduct the RRA

R Refining and selection ofkey renewables applications

STEP 2BASSESSMENT

R Filling out of RRA templateswith regards to:w Policy and strategyw Business models w Institutional, regulatory

and market structurew Resources,

technologies and infrastructure

w Finance, building, operations and maintenance

STEP 2CVALIDATIONWORKSHOP

R National workshop topresent and validatepreliminary findings

2Assessing

STEP 3AFINAL REPORT

R Final report-writing drawnon preparatory materials,completed RRA templatesand list of actions

R RRA Director commentsand approves work onbehalf of the country

STEP 3BFOLLOW UPACTIONS

R Working with IRENAR RRA Director and

Government Focal Pointidentify areas forsubsequent collaborationand action

31 Finalising


OBJECTIVES

This report aims to foster understandingand debate around the renewable energysector in Senegal and provide anintroduction to the issues facing thecountry. It also offers a broad summary ofthe experiences of the energy marketdevelopment and the deployment ofrenewables. The key objectives for thisreport are:

1. To assess the energy issues facingSenegal and review the currentstatus of energy policy, specificallyregarding renewable energy, at aregional and national levels.

2. To critically review employed andplanned approaches to developinginstitutional structures for renew-ables.

3. To review the framework forproviding access to modern energyservices using renewable energy aswell as the current status of

technology and infrastructure to deli-ver it.

4. To critically assess the opportunitiesand barriers for developing viablebusiness models for renewableenergy projects.

5. To suggest a set of actions toaddress the identified barriers.

This report aims to conclude the pilot stageof the RRA process for Senegal and tohighlight an action framework that wouldenhance the deployment of renewableenergy. The analysis presented here isintended to put the issues and proposedactions in the context of regional andinternational experience.

The experience gained from the pilotRRA assessment conducted inSenegal will assist further regionaland country level assessments

25

II. Energy and Renewable Energy Context

THE REGIONAL CONTEXT

The ECOWAS region is characterised by a growing demand for modernenergy and low levels of access and reliability of modern energyservices2. According to the African Development Bank one-third ofAfricans are now “middle-class” (defined as having between USD 2 andUSD 20 to spend daily); while improvements in governance, betteraccess to technology, and better use of natural resources have begunto raise millions out of dire poverty (AfDB, 2011). However, the improvingeconomic growth experienced by African countries is being stunted bypoor performance of the energy sector, especially in Sub-Saharan Africa.Taking the electricity sector for example, the low growth in generationcapacity is unable to keep pace with the growth in the demand forelectricity and has resulted in a current supply/demand gap of about40% (GTZ, 2009). This situation is general for the whole continent.Bazilian et al. (2011) suggest that if Africa is to meet the goal of universalenergy access by 2030, electricity generation capacity needs to growat an annual rate of 13%, compared to the 2% annual growth recordedover the past two decades. Current spending in the energy sector ismuch less than required, even for conventional development andenergy-use patterns. For example, Sub-Saharan Africa countries spendon average less than 3% of their GDP on their power sector with about75% of this spending used as operating costs (Eberhard et al., 2008),suggesting that a mere 0.75% of GDP is used to expand powerinfrastructure.

2The International Energy Agency (IEA) defines Universal Modern Energy Access as “a household having reliable and affordable access to clean cooking facilities, a firstconnection to electricity and then an increasing level of electricity consumption overtime to reach the regional average”. The Asian Development Bank (ADB) also definesEnergy Access as any or a combination of the following: (1) provision of electricity andmotive power to households, (2) improvement in the supply and delivery of energyservices to households, (3) provision of modern fuels and/or efficient devices forcooking and/or heating to households and (4) provision of finance to households toaccess energy (Sokona et al. Widening energy access in Africa, 2012).

S E N E G A L

ECOWASMEMBER COUNTRIES

BENINBURKINA FASOCABO VERDECOTE D'IVOIREGAMBIAGHANAGUINEAGUINEA BISSAULIBERIAMALINIGERNIGERIASENEGALSIERRA LEONETOGOLESE Republic

<0.75% of GDPof Sub-Saharan African countries is used for expanding power infrastructure

Households with electricity access in the ECOWAS region

<30%in 9 out of 15 countries

15%in remaining countries (Guinea, Guinea Bissau, Liberia, Niger and Sierra Leone)

20%for the whole ECOWAS region

Traditional biomass dominates primary energy supply in the ECOWAS region of electricity generated, 64% is from fossil fuels, 31%from hydro power and the rest is from imports.

West African Power Pool (WAPP) set up in 2006 by ECOWAS to address power supply deficiency in the region.

ECOWAS Regional Electricity Regulatory Authority set up to harmonisethe regulations governing trans-border electricity trade.

ECOWAS Regional Centre for Renewable Energy and Energy Efficiency (ECREEE), set up by the ECOWAS Commission in collaboration with the various partners, as a regional response toaddress specific issues relating to catalysing markets for renewableenergy and energy efficiency technologies.

Public-private partnershipsThe setting up of these will cover technical aspects, managementsystems, fundraising and financial risk-taking.


27S E N E G A L

ECOWAS has drawn up multiple energyaccess goals to address the supply/demand gap. The countries in the regionhave decided to implement an ambitiousregional energy policy (ECOWAS, 2006) inorder to increase access to modern energyservices. The region aims to provide accessto modern energy services to at least halfof the population by the year 2015. Thiswould mean bringing 36 million additionalhouseholds within the ambit of modernenergy services (ECOWAS, 2006) and isproposed to be implemented by strengt-hening regional integration (pooling ofknowledge, cross-border cooperation andcapacity building), harmonisation of polit-ical and institutional frameworks, and thedevelopment of coherent energy policiesbased on poverty reduction in rural andperi-urban areas.

During the implementation of the energyprogrammes designed to achieve thesegoals, priority should be given to public-private partnerships (PPPs). It is mostimportant that public actors (state, publicinstitutions, local authorities, etc.) andprivate actors (national and local entre-preneurs, financial institutions, associationsand cooperatives, NGOs, etc.) aremobilised.

One key regional initiative was theestablishment of the West African PowerPool (WAPP) as a specialised ECOWASinstitution in 20063. WAPP is now workingto harmonise the regulatory frameworkthat governs the electricity sector in each

member country. The first phase of its workinvolved engaging with countries that arealready interconnected, including Nigeria,Benin, Burkina Faso, Cote d’Ivoire, Ghana,Niger and Togo, although some criticalgaps in grid infrastructure still need to beaddressed. WAPP has also begun toengage with countries which do not yethave interconnection facilities, includingGuinea, Guinea-Bissau, Liberia, Mali,Senegal and Gambia. Other key initiativesinclude the ECOWAS Regional ElectricityRegulatory Authority and the ECOWASRegional Centre for Renewable Energy andEnergy Efficiency (ECREEE).

Although the generation, transmission anddistribution of electricity are mainlyprovided by publicly-owned, vertically-integrated national utilities, efforts arebeing made by a number of countries tomobilise private sector finance throughIPPs with varying levels of success4. Theseefforts continue to be hampered byperception of investor risks, regulatoryconcerns with competition between publicand private generation assets anddifficulties in developing bankable businessmodels.

The Total Primary Energy Supply (TPES) ofSenegal in 2010 was 141.6 PJ. Biomassaccounts for about 47% of the country’senergy supply with oil products accountingfor about 48% (Figure 2). Coal, hydro,natural gas and solar (whose combinedshare has greatly increased since 2000) arethe other energy sources used (Figure 3).

3 WAPP was created by Decision A/DEC.5/12/99 during the 22nd Summit of the Authority of ECOWASHeads of State and Government. WAPP was guided by a Steering Committee comprising Energy Ministersof ECOWAS Member States, supported by a Project Implementation Committee, comprising ManagingDirectors of Members States’ Utilities and Technical and Institutional Working Groups. The 29th Summit ofthe Heads of State and Government of the ECOWAS Member States held in Niamey in January 2006adopted the Articles of Agreement establishing the new WAPP organisation by Decision A/DEC.18/01/06on 12 January 2006. The same meeting granted the status of a Specialised Institution of ECOWAS to WAPP,by Decision A/DEC.20/01/06.

4 Successful cases are CIPREL and Azito in Côte d'Ivoire; Global Electrical Group (GEG) in Gambia;Takoradi II, Sunon Asogli and Bui Hydro, in Ghana; AES Barge, Okpai , Afam VI and Aba Integrated, inNigeria; GTi Dakar, and Kounoune I, in Senegal; and Centrale Thermique de Lome in Togo.


157.9 PJTotal Primary Energy Supply 2,858 GWh

86.8 PJShare of renewables in TPES(54.8% of TPES)

2,858 GWHElectricity generation

292.0 GWHShare of RE in electricity generated(10.2 % of total)

548 MWElectrical capacity (2008)

2 MWShare of RE in electrical capacity(0.4% of total)

189 KWHElectricity use per capita

55.5%Senegal’s EnergySelf-sufficiency

US $1.2 BILLION Senegal’s fuel imports(23.2% of total imports)

Approximately 25%Share of population using solid fuels

Senegal Energy Profile Figure 1. Senegal Energy Profile

29S E N E G A L

All the fossil fuels consumed in the countryare imported – in particular the oil productsthat are used for transport and electricitygeneration – and make a significant contri-bution to the country’s imports bill with anestimated CFA 620 billion (approx. USD 1.2billion)5 in 2009 corresponding to 23.3% oftotal imports (Figure 4). This leavesSenegal very vulnerable to increases in theprice of oil products. Households accountfor 52% of the total energy consumption,

followed by the transportation sector(30%), and the industrial sector (14%). Agr-iculture and public services consume theremaining 4%.

Both the biomass and oil products used inSenegal are sources of concern: the use oftraditional fuels – wood and charcoal – isputting great pressure on forests andcontributing to a degradation of theenvironment. In order to decrease

5. USD 1 = CFA 532

Figure 3. Energy Sources Used

Source: IEA, 2011

Figure 2. Total Primary EnergySupply by Fuel


traditional biomass consumption, Senegalhas had a policy of subsidising liquefiedpetroleum gas (LPG) supplies for morethan two decades.

About 40% of the households in Senegalhave access to electricity, principallythrough SENELEC’s interconnected grid.SENELEC shares generation with ESKOM-Manantali6, GTI-DAKAR7 and Kounoune I8

to power the interconnected grid, whilethere are small independent and self-power producers such as Cim-SahelEnergy, CSS, SONACOS, SOCOCIM and ICS.The rate of electrification is progressingthrough new connections to this main gridand through small off-grid projects. How-ever, consumers and businesses connected

to the grid still have to contend with ahighly unstable and unreliable electricitysupply, leading to revenue and productivitylosses to firms and the economy.

Modernisation of Senegal’s power gene-ration infrastructure is lagging behinddemand. This is reflected in increasedpower generation costs – the current ave-rage wholesale cost of power in Senegal isabout CFA 70/kWh (USD 0.14/kWh)(SENELEC, 2012) compared with USD0.13/kWh in the Sub-Saharan region’slarger power systems (AfDB, 2011). Theexisting high cost of electricity to cons-

umers means that it is impossible tofinance further new connections throughincreased consumer tariffs and the scarcityof capital available to the governmentmeans that investments have to relyheavily on donors.

Senegal has a proven reserve of oilestimated at 100 million m3 in the south(Casamance area) but as yet, neither

6 ESKOM-Manantali is in charge of running the Manantali dam (a joint venture between Mali, Mauritaniaand Senegal), in the frame of the OMVS with a 200 MW installed capacity with Senegal receiving 32% ofthe power generated.

7 GTI-DAKAR signed a 15-year exclusive contract for electricity supply with SENELEC in 1996 and hasinstalled a capacity of 53 MW (natural gas 37 MW and 16 MW from a steam turbine).

8 Kounoune I signed a 15-year exclusive BOO contract for electricity supply with SENELEC in 2008 and has installed a capacity of 68 MW (HFO diesel).

Image 1: Traditional Biomass in Senegal © www.beershebaproject.org

Figure 4. Senegal Oil Bill in billion CFA Francs

31S E N E G A L

upstream nor downstream production cap-acity has been developed (Enda-Energie,2006; Enefebio, 2007). Imported crude oilis refined at Societe Africaine de Raffinage(SAR) which has an annual capacity of 1.2million tons (SAR, 2010). Gas reserves,estimated to be 30.4 billion m3 in theGadiaga area as of 2011, are used exc-lusively for running four gas turbines witha total output of 88 GWh (8% of the totalelectricity production within the country)(SENELEC, 2012). Table 1 presents theestimated energy potentials in Senegal byresources.

RENEWABLE ENERGY IN SENEGAL

Senegal is endowed with a large solarenergy resource. Over most of country’sterritory, the solar irradiation is above 2 000 kWh /m2/year for Global HorizontalIrradiation and above 1 800 kWh/m2/yearfor Direct Normal Irradiation (Ministere desEnergies Renouvelables, 2011). This prov-ides good prospects for photovoltaic solarpower projects. The falling prices of photo-voltaic panels and system componentsmake solar a very attractive solution, parti-cularly when the costs of the alternatives –imported oil products – are high.

There is also significant wind energy pote-ntial along Senegal’s coast between Dakarand Saint Louis with an average speedestimated around 4 m/sat 10 metresheight. Recent measurements performedat 30-40 metres revealed the existence ofspeeds above 6 m/s (Ibid).

189 KWHPer capita electricity use in Senegal – fourth among west African countries.

579 KWHAverage for Africa

2777 KWHAverage for world

COST COMPARISON

CFA 110/KWH

or

US$ 0.22/KWHAverage cost to customer for electricity in Senegal

US$ 0.04/KWHAverage for South Asia

US$ 0.07/KWHAverage for East Asia

Figure 5: Per Capita Electricity UsekWh per capita

Source: IRENA 2011b


Resources Sites PotentialOil Casamance (heavy oil) 100 million m3

Peats Niayes 390 million m3

Natural Gas Diamiadio 400 billion m3

(reserve 30.4 billion m3)Biomass Tambacounda Kolda, Ziguinchor 331.3 million m3

Hydro Senegal and Gambia rivers 1 400 MWSolar Countrywide 1 800 kWh/m2/year,

Direct Normal Irradiation2 000 kWh/ m2/year, Global Horizontal Irradiation

Wind Great coast areas 4- 6 m/s

Table 1: Types, location and potentials of energy resources(Enda-Energie, 2006; Enefebio, 2007)

The total potential for large hydropower in Senegal is estimated to beapproximately 1 400 MW on theSenegal and Gambia Rivers (Ibid).

Solid biomass (agricultural and agri-business by-products) and liquidbiofuels also have potential in partsof the country. As mentioned earlier,biomass is the dominant source ofenergy in Senegal providing morethan 50% of the national energybalance. Biomass resources, such asagricultural byproducts (appro-ximately 3.3 million dry tons of agri-cultural residues) agribusiness (ricehusk, bagasse, peanut shells, cottonstalks, etc.), also have the potentialfor grid-distributed and off-gridelectricity generation (Ibid). Plantspecies (plant oil, jatropha curcas,cat-tails, sunflower, cotton, castor,sweet sorghum etc.) also havepotential for biofuel production.Image 2 is a geographical repre-sentation of Senegal’s renewableenergy potential in relation with theexisting power grid.

KEY ENERGY STAKEHOLDERS

A wide range of stakeholders wasidentified to participate in the work-shops and discussions in order tosupport the RRA process. The stake-holders were primarily technicalstaff drawn from government dep-artments and public sector agen-cies, but also came from the privatesector, civil society, dev-elopmentand cooperation agencies as well asfinancial institutions, since they allplay an important role in building arenewable energy sector. Inaddition, bilateral meetings andinterviews were conducted with keysenior officials of these differentinstitutions. It is because so manypeople were able to give their inputsthat the Renewables Readiness Ass-essment is meaningful in buildingnational consensus on renewableenergy in the country. On thefollowing pages is a list and desc-ription of these institutions.

33S E N E G A L

HV lines(225kv & 90 KV)HV lines(30 KV)

Grid Connected Thermal Plants

HV/MV Injector and Thermal Plants

Decentralized Thermal Plants

Renewable Energy Potential

Generation and transmission grids

Wind

Solar

Hydro(Small)

Bio energy

Ziguinohor

Boutoute

Kolda

Kolda

Tambacounda

Tambacounda

Dakar

Mbour

Cap-des biches

Bel-al

Saint-louis

Podor

Diourbel

Louga Matam

Ourossogul

Dakel

Saint-louis

KaolackKahone

FatickFatickThies

Thies

Louga

Towards Manantali Dam


HV lines(30 KV)HV lines(225kv & 90 KV)


HV lines(30 KV)HV lines(225kv & 90 KV)


HV lines(225kv & 90 KV)

Podor

Decentralized

HV/MV Injector and


HV lines(30 KV)

Thermal PlantsDecentralized

Thermal PlantsHV/MV Injector and


HV lines(30 KV)

Thermal Plants

Thermal Plants


Saint-louis

LougaL

Saint-louis

Saint-louis

waeRen

Solar

Wind

otentialPy gle Enerbwa

otential

Bel-al

Cap-des biches

Dakar

Thies

ss

T

Thies

Diourbel

biches

Louga

LougaDiourbel

Ourossogul

MatamLouga

Ourossogul

Matam

Dakel

ygBio ener

Hydro(Small)

Hydro(Small)

Cap-des biches

Thiesa

ies aticrr

FaticFa

Cap-des biches

Mbour

Fatick

K

aatick

Kahone

Kao

olack

TambacoundT

Tambacounda

oTTo

ds Manantali DamrwaoTTo

ds Manantali Dam

Boutouu

Ziguinohor

Kh

utte

guinohor

KoldaKolda

Tambacounda

Tambacounda

National Electricity Grids and RE Potential

Image 2(Author and Senelec, 2012)

34 R E N E WA B L E S R E A D I N E S S A S S E S S M E N T

Council of Ministers The Council of Ministers takes the major decisions related to energy, especially on-grid electricity.

Inter-Ministerial Committee on Renewable EnergyHowever, in order to coordinate and facilitate the integration of electricity from renewables into thegrid, all matters relating to renewable energy need to be discussed and finalised in consultation withthe key actors (MoE, MER, CRSE, ASER, SENELEC) in the Inter-ministerial Committee on RenewableEnergy (Comité Interministériel sur les Energies Renouvelables, or CIER) before taking them fordecision to the Council of Ministers.

Ministry of Energy (MoE) MoE is in charge of on-grid electricity policy and closely monitors its implementation.

Ministry of Renewable Energy (MER) MER is responsible for framing policies for the promotion of electricity generation from renewableenergy sources and thus plays a key role in formulating policies and monitoring decisions taken inconsultation with the MoE and other relevant stakeholders for promoting decentralised renewableenergy applications.

The Regulatory Commission for the Electricity Sector (CRSE)CRSE has the role of promoting competition, efficiency and economy in bulk power markets,regulating electricity tariffs, improving the quality of supply, advising the government on theremoval of institutional barriers to bridge the demand supply gap, thus safeguarding the interests ofconsumers.

Senegalese Agency for Rural Electrification (ASER) ASER is responsible for much of Senegal's off-grid rural electrification and power generationalthough some projects still fall under SENELEC's authority. ASER, which was established in 2000but only became fully operational in 2005, has been given the responsibility of implementing thestrategy for rural electrification (PASER).

SENELEC: The national electricity utilitySENELEC is one of the pillars of the economic and social development of Senegal and is its mainelectricity generator.SENELEC is the concessionaire for the transmission and distribution network in Senegal (with theexception of Manantali interconnection) and operates in a monopoly condition for the purchase andsale of wholesale power. SENELEC has been through several phases of privatisation but its priority now is to strengthen thecapacity of power generation and implement organisational restructuring.

Key Energy Stakeholders

35S E N E G A L

Intersectorial Committee for the Implentation of Synergies between Energy and other Strategic Sectors (CIMES)CIMES is a multi-sectorial group comprising, among others, the relevant ministries, civil society,private sector and donors. The group worked towards including energy issues within the NationalPoverty Reduction Strategy and is considering the energy gaps to meet development goals, and thecontribution of renewable energy to these goals.

National Agency for Solar Energy (ANDES)ANDES is a new agency set up by Senegal in response to the 2010 mandate it received from theheads of states of ECOWAS countries to promote solar energy in the sub-region.

University Cheikh Anta Diop de Dakar and its subsidiariesThe University Cheikh Anta Diop of Dakar focuses on research in renewable energies in Senegalthrough its Research and Study Centre for Renewable Energy (CERER). Activities covered includestudies into the renewable energy potential of the country, as well as pilot projects in wind and solarthermal energy.

The Polytechnic School (ESP) has been integrating renewable energy content into its curriculum fora long time, but no dedicated programme exists. Each department in the ESP has a liaison teacherto the private sector.

Enda-EnergyEnda-Energy is a branch of the Enda-Tiers Monde organisation; its work focuses on energy use andmanagement in the African context, with an emphasis on the linkages between energy anddevelopment.

Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)GIZ develops capacities for sustainable development of the energy sector in Senegal through theProgramme to Promote Rural Electrification and a Sustainable Supply of Domestic Fuel (PERACOD).

CMS and Sen Finance CMS and Sen Finance are local micro-finance institutions with a good, well spread network of localbranch offices. However, renewable energy is missing from their portfolios due to a lack ofunderstanding of renewable energy technologies, industry standards and business models.

Refer to footnotes for more information on CRSE9 , ASER10 , ANDES11 and PERACOD12 .

9. The CRSE was created by the Law of 98-29 of 14 April 1998.

10 Villages close to the grid and the ones electrified before 2000 are under SENELEC control while allremaining rural localities are under ASER responsibility.

11 ANDES was established by Decree No. 2011-634 of 17 May 2011, but it is yet to become operational.

12 PERACOD is funded by the EU Energy Facility, the DGIS and the French Development Cooperation. Themain activities of PERACOD are off-grid rural electrification, improving cook stoves, and trainingcommunities and the private sector in implementing these measures. PERACOD activities began in 2003and will end in 2015.


ENERGY POLICY AND REGULATORY FRAMEWORK

Senegal initiated its comprehensive ene-rgy planning more than a decade ago withthe “Lettre de Developpement du Secteurde l’Energie (LPDSE),” in 1997. This policyarticulated the goals of the country toeliminate inefficiencies, decrease supplycosts to consumers and mobilise fundingfor energy sector development. In 1998, theenergy sector, through the enactment ofthe Law of 98-2913, opened up for privatesector investment in electricity generationand the Regulatory Commission for theElectricity Sector (CRSE) was formed inorder to ensure fair and equitable treat-ment for all players. The CRSE became fullyfunctional with a chairman and technicalmembers, and worked to promote comp-etition, efficiency and economy in bulkpower markets, improve the quality ofsupply, promote investments and advisegovernment on the removal of institutionalbarriers to bridging the supply/demandgap and foster the interests of consumers.The Law of 98-29 was further amended in2002 in order to provide a greater level oftransparency to the procedures for invitingprivate sector tenders.

However, all the objectives which were laidout for LPDSE in 1997 could not be ach-ieved during the five-year implementationperiod and LPDSE 2003 was formulatedwith the aim of completing the necessarysector reforms. New measures were des-igned to promote development, enhancethe involvement of the private sector andreduce the cost of supply to consumers.

Improved access to energy services wasidentified as a key objective of Senegal’snational poverty reduction strategy andstrong linkages to this goal wereincorporated into grid infrastructureplanning.

In order to further the framework forenergy policy, LPDSE 2008 was form-ulated. LPDSE 2008 builds on theexperience gained and has a strong focuson promoting renewable energy as ameasure for reducing the vulnerability ofthe country to external factors including oil

ENERGY PLANNING

R 1997: Creation of LPDSE.R 1998: Law of 98-29. Setting up of CRSE.R 2003: LPDSE 2003 to complete reforms.R 2008: LPDSE 2008. MER set up, Laws on

Renewable Energy and Biofuels enacted.R Current: National Strategy for Renewable

Energy under discussion. To set a target of 20% renewables in electricity mix by 2020.

RURAL ELECTRIFICATIONSenegalese Rural Electrification Action Plan(PASER)

8% Electricity access to rural households in 2000

62%Electricity access to rural households in 2022LPDSE 2008

50%Rural electrification target for 2012

13The Law of 98-29, enacted as part of the reform of the electricity sector, aims to promote privateinvestment and eventually to introduce competition in production, wholesale and bulk purchase.Thislaw was amended in 2002 and systems of launching and control of tenders for the production ofelectricity and the concept of ownership of the facilities of production, transportation and distributionwere introduced.

price volatility. The role of renewableenergy in providing access to modernenergy services and transport fuels wasfirst highlighted in LPDSE 2008. TheMinistry for Renewable Energy (MER) wascreated and the Law on Renewable Energyand Law on Biofuels were enacted to givefurther effect to the political intent statedin LPDSE 2008 which defines the frame-work for renewable energy deployment inthe country and a law for promotingbiofuels.

A renewable energy development policy(National Strategy for Renewable Energy),which draws on the tenets enunciated inthe law, is under discussion in Senegal.When this policy is approved by theCouncil of Ministers, Senegal will have arenewable energy target of 10% ofelectricity from renewable resources in itselectricity mix by 2020 (Ministere desEnergies Renouvelables, 2011). The policyalso envisages the development of amaster plan to develop flagship projects

and identify funding sources while emp-hasising the need to strengthen bothtraining and research and development inrenewable energy14.

In terms of decentralised application, ruralelectrification has been made a nationalpriority and clear linkages with strategiesfor poverty reduction have beenestablished in the policy framework.Senegal has an ambitious multi-yearprogramme (2002-2022) for rural elec-trification, the “Plan d’Action Senegalaisd’Electrification Rurale” (PASER – Seneg-alese Rural Electrification Plan of Action),which aims to increase the rate of ruralelectrification (in terms of rural householdconnections) from about 8% in 2000 to62% in 2022.

Many ministries have recognised the rolethat renewable energy can play in theachievement of the MDGs. The Ministry ofHealth has stressed the importance ofrenewable energy for maintaining the cold

37S E N E G A L

14 Senegal plans to reinforce the installed capacity connected to the grid by producing 400 MW fromclean energy resources by 2020 (200 MW in 2015 and an additional 200 MW by 2020),(http://fr.allafrica.com/stories/201106240575.html)

BIOFUELSNational Biofuels Strategy 2006

320,000 haTarget for land area to be planted with Jatropha by 2012

1.2 billion litresTarget forJatropha oil to be produced by 2012

Comité National des Biocarburants (CNB)Set up to coordinate across relevant institutions inthe biofuels sector

Law No. 2010-22To create favourable conditions for the development of the biofuels sector


chain for vaccine distribution. In theirsectorial policies, the Ministries of Waterand Agriculture have similarly stated theimportance of using renewable energy forpumping to provide safe drinking waterand irrigation. The Ministry of Constructionhas made the usage of solar water heatersmandatory in government buildings andthose of various institutions. The NationalStrategy for Poverty Alleviation – DSRP2006-10 – built on these sectorial policies,placed a high priority on strengthening theinfrastructure for providing access toelectricity in rural and peri-urban house-holds as well as electrification for socialinfrastructure and providing energy formechanising motive applications15.

The agenda set by the National Strategyfor Poverty Alleviation is well-reflected inLPDSE 2008 which set a goal of 50% ruralelectrification by 2012 (Ministere de l'Ene-rgie, 2008). The National Strategy forRenewable Energy, currently under dis-cussion, identifies a key role that the pri-vate sector will be required to play in thegeneration of electricity through theinstallation of decentralised applicationsand also in developing the market for solarphotovoltaic applications, small wind turb-ines and biofuel engines (e.g., multi-functional platforms). It recognises the roleof renewable energy for both generation ofelectricity and mechanisation of motiveapplications for rural areas.

With regard to biofuels, following the mee-ting convened in Dakar for the establish-ment of the Pan-African Non-PetroleumProducers Association (PANPPA) inNovember 2006, many African countries,including Senegal, have reflected on the

role of biofuels in their agricultural andenergy policies. Therefore, when Senegalestablished its National Bioenergy Strategyin 2006, one of its aims was to contributeto national energy security through theproduction of bioenergy. This includeddeveloping jatropha for biodiesel produc-tion and sugarcane for ethanol production.The fuels produced were to be used notonly for transport, but also for blendingwith diesel for power generation. Thegovernment aimed to plant a total of 320 000 ha of jatropha by 2012, byproviding each of 320 rural communitieswith 1 000 ha of jatropha seedlings, whichwould be used to produce a total of 1.2 billion litres of jatropha oil to meetannual petrol and diesel needs. However,implementation of this project is currentlylagging behind.

Policy measures for biofuels are alsoincluded in agricultural policies and pro-grammes such as Retour Versl’ Agriculture– Going Back to Agriculture – (REVA) and

15The Document of the Strategy for Poverty Alleviation(DSRP) targeted the electrification of basic ruralinfrastructure for rural and peri-urban areas in order to facilitate the operationalisation of basic infrastructures(health centres, schools, etc.), the access to electricity for 66% of households (30% from rural areas) by 2015,and the access to motive power for rural women, as priorities for achieving the MDGs.

FINANCING RENEWABLE ENERGY

THE SOURCE

R Bilateral and multilateral BanksR DonorsR Rural Electrification Fund (operated by ASER)R Carbon Fund (set up by Government of Senegal)R Local banks and private sector are reluctant to

invest in energy due to risk perceptionR National Agency for promotion of Investment (APIX)

set up to implement the investment code adopted by Senegal and to create favourable conditions for investments

39S E N E G A L

Grande Offensive Agricole pour laNourriture et l’ Abondance – the GreatAgricultural Offensive for Food andAgriculture (GOANA).

Law No. 2010-2216, a law on theorientation of the biofuels sector, wasadopted in 2010 with the aim of creatingfavourable conditions for the developmentof the biofuels sector and providinganswers to the problems of economicgrowth, based on a policy of energy self-sufficiency through the development ofbiofuels. The law therefore covers all comp-onents of the biofuels sector including pro-duction, processing, storage, transport,marketing and distribution. It determinesthe operating environment for all forms ofbiofuels and the conditions and standardsfor their production and exploitation onSenegal’s national territory and/or throughinternational cooperation.

Implementing decrees are currently beingdrafted and will determine incentives forproduction, tax and customs treatment,marketing and other arrangements. TheMinistry of Renewable Energy has amandate to cover both biomass (under theDirectorate of Renewable Energy) andbiofuels (under the Directorate of Biofuels).

A national technical committee, the“Comité National des Biocarburants”(CNB), has also been established under theaegis of the National Bioenergy Strategy tofacilitate coordination across relevant inst-itutions. The CNB comprises members fromthe Ministries of Renewable Energy, Energyand Agriculture, Investment PromotionAgencies, and reports to the Director ofBiofuels and Biomass in the Ministry ofRenewable Energy. The government alsoappointed the Senegalese Institute forAgricultural Research (ISRA) under the

16 Law No. 2010-22 of 15 December 2010 of the biofuel sector.

Photo Courtesy: INENSUS West Africa S.A.R.L

40

National Bioenergy Strategy to take chargeof monitoring biodiesel and bioethanolproduction. To raise awareness of the needfor jatropha plantation, rural communitieshave been involved using the decentralisedframework of the National Rural Coun-cillors Association (ANCS).

A range of research institutions are activein the biofuels sector, including universities,CERER and ISRA17; and there are severaltraining institutes across the country.Quality control of biodiesel and bioethanolproducts falls under the responsibility ofthe Societe Africaine de Raffinage (SAR–the Senegalese Refinery).

The regulatory framework in Senegalcomes in the form of decrees promulgatedfrom time to time. The two most importantand recent decrees for implementing theLaw on Renewable Energy were issued inDecember 2011. They lay down theconditions of purchase and remunerationfor electricity generated by renewableenergy plants, the conditions for theconnection of these plants to the grid, andthe conditions for purchase and remun-eration of surplus electricity from captivepower plants generating electricity fromrenewables. However, reduced taxes andcustoms duties applicable to renewableenergy equipment are only considered ona case-by-case basis. The decrees aretherefore aimed at eliminating inefficien-cies, decreasing the cost of supply toconsumers, and promoting developmentfunding for the energy sector.

FINANCING AND INVESTMENT

In Senegal, investment and finances in theenergy sector largely rely on funding frommulti and bi lateral banks or donors, butrarely from the private sector. In renewableenergy, electrification projects are jointlyfunded by the private sector and the RuralElectrification Fund (REF) while otherapplications, such as motive and thermalprojects, are being implemented throughdonor-funded programmes.

As in many other developing countries,public investments in the energy sector fallshort of the requirements for funds neededto strengthen and modernise the infra-structure. The government has placed alevy on the selling of hydrocarbons andcreated a Carbon Fund (CF). This fund isbeing used to create additional capacityand to provide subsidies to consumers inthe form of lower electricity costs. Thegovernment has also set up funds to pro-mote renewable energy and biofuels, andraise awareness about these resources.

However, there is still a strong reliance onexternal funding (from donors) for theimplementation of energy programmesand projects. Local banks and the privatesector remain reluctant to invest in theenergy sector due to risk perception.

Senegal is making a clear thrust towardsrural electrification. A Rural ElectrificationFund (REF) operated by ASER has beenestablished and is responsible for financing

17The ISRA is a research institute in applied science and technology created in 1974 to design, organise and carry out all research on the rural sector in Senegal. Its mission is to generate knowledgeand appropriate technologies that would support the country’s socio-economic development bystimulating job creation, increasing food security among other things.

R E N E W A B L E R E A D I N E S S A S S E S S M E N T

41S E N E G A L

sustainable development of rural elec-trification. Through the REF, ASER supp-orts investments by granting subsidies tooperators, financing credit lines and gua-ranteeing funds to banks, micro-financeinstitutions and other programme partners.

Senegal has also adopted a NationalInvestment Code designed to create favou-rable investment conditions. The code pro-vides protection against expropriation andnationalisation, as well as guidelines forrepatriation of the investment and itsreturns. A special agency, “AgenceNationale chargée de la Promotion del’Investissement et des Grands Travaux”(APIX - National Agency for the Promotionof Investment) has been formed to overseethe code. National treatment for foreigndirect investment is also ensured which hasprovided an atmosphere conducive tostimulating business initiatives. Althoughenergy is not specifically mentioned in theinvestment code, and is not thereforecurrently an eligible sector, if investments

creating a new enterprise also create jobsand are located in underdeveloped areas ofthe country, the enterprise would receiveall the preferential tax benefits under theinvestment code.

Fiscal incentives for promoting croppingand harvesting feedstock for biofuels andproducing biofuels on a commercial scaleare provided in the regulations. TheNational Investment Code provides thatthe activities on agricultural production,processing and storage will be eligible toreceive benefits while farm incomes frombiofuels will be exempt from income tax fora period of five years.

The development of affordable energy insufficient quantities is crucial to achievingSenegal’s economic development goals.Renewables therefore need to be exploited.Fortunately, the current political and inst-itutional context is favourable to a stepchange in their deployment.



RENEWABLE ENERGY HAS A HIGHLEVEL OF POLITICAL SUPPORT, WHICHSHOULD HELP OVERCOME SOME OFTHE CHALLENGES TO ITS SCALE-UP.INDEED, SENEGAL HAS ALREADYADOPTED A RENEWABLE ENERGY LAWFROM WHICH A RENEWABLE ENERGYSTRATEGY HAS BEEN OUTLINED.

43S E N E G A L

A. ON-GRID ELECTRICITY

Hydropower is the only renewable energy resource connected to thegrid through the 200 MW Manantali hydro project18 of which 64 MW isdedicated to Senegal.

The electricity produced by SENELEC and private companies isinsufficient to cope with the growth in demand. Growing infrastructureobsolescence is leading to frequent shut-downs and transmission lossesare estimated at around 21% (Ministere de l'Energie –Direction Nationalde l'Energie, 2007) and the installed capacity has been reduced to aneffective capacity of around 548.7 MW, of which 429.7 MW is connectedto the grid (SENELEC, 2012). As mentioned earlier, even those who haveaccess to electricity suffer from shortages and poor quality of supply.Unscheduled outages, load shedding, fluctuating voltage and erraticfrequencies are common. Consumers and the economy bear a largeburden of this poor quality of supply.

SENELEC enjoys a monopoly position in the distribution of electricity inSenegal. The electricity distribution system of SENELEC as of 2008 wascomprised of:

1. An MV network at 6.6 kV and 30 kV with a total length of 7 627 km;

18The Organisation for the Development of the Senegal River (OMVS), which consists ofMali, Mauritania and Senegal, has constructed the Manantali dam on the Bafing River,the main tributary of the Senegal River in Mali, in 1987. The Manantali project includes a200 MW power station and a 1 300 km grid of transmission lines to the capitals of Mali(Bamako), Mauritania (Nouakchott) and Senegal (Dakar).

III. Market Development by Sector

44

2. A LV network with a total length of6 761 km;

3. 13 HV/HV substations and 3 511MV/LV(30/6.6 kV) substations.

Senegal signed the WAPP agreement in2000 as mentioned earlier, where it wasdecided to develop energy productionfacilities and interconnect the respectiveelectricity grids. Senegal has been activelyparticipating in the planning, decision-making and implementation of the WAPPin order to develop interconnectionbetween existing and future hydro powerprojects in the Senegal and Gambia riverbasins. Projected commissioning of theproject was scheduled for 2012 but delaysin implementation have postponed it to2015.

In 2010, electricity generation in Senegalwas estimated at 2 400 GWh, jointly

produced by SENELEC and privatecompanies. (SENELEC, 2012; IEA, 2009). Itwas mainly consumed by the residentialsector followed by the commercial andpublic services sector. This figure is lowerthan the 3 110 GWh generated in 2008(SENELEC, 2012; IEA, 2009). The decline ingeneration is due to switching disruptionsand outages linked to system malfunctionsand the decline in the quantity of importedoil due to high prices.

Senegal has good potential to promotebiomass, solar and wind to generate gridelectricity through both the public andprivate sector (mainly independent powerproducers). Although most of thedominant market players have not startedconsidering renewable power as a seriousinvestment option, feasibility studies forvarious projects by new actors are underway.

SENEGALESE HIGH VOLTAGETRANSMISSION GRID

1,262.5 km Power line[Senelec, 2012]

National component owned and operated by SENELEC

Supranational component owned and operated bythe Manantali hydro project.

21%Transmission losses due to obsolescence ofinfrastructure

548 MWInstalled capacity

429.7 MWConnected to grid

2 400 GWhelectricity generated in 2010

3 110 GWhgeneration in 2008


45

For example, a typha-based19 power plant,has identified a cost of sale to SENELEC ofCFA 66/kWh (USD 0.13/kWh), which isbelow the average wholesale cost ofcurrent generation of CFA 70/kWh (USD0.14/kWh).

Similarly for solar projects to becomecommercially viable, the required costs ofsale are in the range of CFA 120-130/kWh(USA 0.24-0.26/kWh).

Wind projects are only viable20 if a salecost of CFA 85-95/kWh (USD 0.17-19/kWh)can be negotiated with SENELEC. Atpresent, no feed-in tariff has beenannounced for renewable energy by theregulator.

As with wind, there is currently no solargrid-connected power generation inSenegal, despite the existence of a verygood solar potential uniformly distributedacross the country. However, anencouraging development in this area hasbeen the 2010 greenfield investment by aprivate consortium of investors in aphotovoltaic module assembly plant inSenegal. With an annual capacity of 25MW, the facility is geared for producinghigh-quality modules of 50-300 Wp (SPEC(Sustainable Power Electric Company),2012). It also has the requisite capacity tofunction as a system integrator for grid-connected systems. Strong local contentand trained personnel should provide astrong impetus for government to supporton-grid plants by fixing an attractive feed-in tariff.

Findings from the RRA

Renewable energy has a high level ofpolitical support, which should help

overcome some of the challenges to itsscale-up. Indeed, Senegal has already ado-pted a Renewable Energy Law from whicha Renewable Energy Strategy has beenoutlined. The implementing decrees of theRenewable Energy Law are as follow:

w Decree No. 2011-2013 providesconditions of power purchase andremuneration for electricity gener-ated by renewable energy plants andthe conditions of their connection to

19 Typha is an invasive species growing in the Senegal River

20 A feasibility study for a wind power plant project of 15 MW to be connected to the grid was initiated inthe Saint Louis area by Midi-Pyrénées (France), C3E (Dakar) company and CEGELEC (Toulouse).

CFA 70/kWh Wholesale power purchase price of SENELEC

Identified wholesale prices from RE projects:

Biomass CFA 66/kWh

Solar CFA 120-130/kWh

Wind CFA 85-95/kWh

USD 1 = approx. CFA 532

PV module assembly plant in Dakar (SPEC)50-300 Wp

High quality modules to be produced at the facility for up to

25 MWannual capacity

Invested in by private consortium comprising of:AREVA, Schneider Electric, African Fund for Biofuels and Renewable Energy (FABER-ABERF), Peacecock, Enersaf Energy Solutions

S E N E G A L


the grid21. It also provides theformula for the avoided cost22 whichserves as a reference for calculatingthe power purchase price cap. It alsocontains elaboration on renewablepower purchase obli-gation andfeed-in tariffs for different renewableenergy technologies.

w Decree No. 2011-2014 provides theconditions of power purchase ofsurplus renewable energy-basedelectricity from self-producers23. Ithas fixed the maximum intake fromrenewable energy sources (variablepower), determined the purchaseprice, conditions of purchase ofsurplus energy and connection to thegrid, and other conditions.

The effectiveness of these decrees willdepend on how investors respond to theincentives for renewable energy. Theavailability of funds to support deploymentin the form of feed-in tariffs (and any other

fiscal incentives) will also be crucial and willdepend in part on continued engagementwith donors.

Electricity tariffs regulation aims tominimise consumers’ charges while main-taining the financial viability of SENELECand the quality of the supply by fixing afive-year price cap. However, tariffscurrently appear quite disadvantageous,particularly for SENELEC, which does nothave any control over its investmentprogramme from the perspective offunding mobilisation. A study could beundertaken for the grid integration todefine the modality and to identify wheremoney will come from (as the governmenthas committed to pay the differencebetween the feed-in tariff and average costof diesel energy). Furthermore, the CRSEshould be strengthened, particularly inview of unbundling SENELEC activities,encouraging the active participation of theprivate sector in production and distri-bution, and investigating the possibility of

21 Decree No. 2011-2013 related to the conditions of purchase and compensation of electricityproduced by renewable energy power plants and the conditions of their connection to the grid.

22 Capital and operating costs saved by the grid operator when electricity from conventional energysource is substituted with electricity from renewables in the frame of electricity purchase obligationsprescribed by law and regulations.

23 In Decree No 2011-2014, “self-producers” means any company or household producing electricity fortheir own consumption and usage.

Image 3: Work in progress at SPEC's solar modules mounting facility (©www.spec-solar.com)

47S E N E G A L

opening up the renewable grid-connectedsector.

Since CIER is responsible for reaching anagreement on integration of renewableenergy into the grid, one of its main tasksin the near future will be determining thetechnical feasibility of absorbing renewableelectricity into the centralised grid andapproving the grid code amendments thatare necessary to integrate renewables intothe system. Currently the grid operator(SENELEC) has no experience inintegrating variable energy sources into thegrid, so capacity-building measures interms of how to technically manage thesesources will be required.

IPPs have more than 10 years of experiencein Senegal with diesel-powered generation.This suggests a relatively stable relation-ship between independent providers and

SENELEC which could be capitalised on sothat the practical experience gained withdiesel generation can benefit renewableenergy deployment. However, in the pastIPPs have generally had governmentguarantees to back commercial contractsto offset the risks.

In biomass projects, costs will oftendepend on the boundary of the project(e.g., for typha, it must be determined whobears the costs of clearing the river). Todate, there has been limited private sectorparticipation in bioenergy. However, thereare key areas where biomass could play arole, particularly where agriculturalresidues could provide a low-cost fuel forpower generation in rural areas, althoughmechanisms for collection and storagewould need to be worked out meticulouslyand the costs built into the tariff regime.Costs would vary, depending on theparticular technology under consideration,but there is evidence that biomass pro-duction could be commercially viable.

One of the key issues in large-scale renew-able energy projects is the ownership ofthe land needed for project development.In Senegal, most land is owned by localcommunities and, therefore, to protect theproject’s viability, mechanisms must bedeveloped that involve landownersthroughout the project life cycle.

Another issue is Senegal’s limited exp-erience with the installation, operation and

2 MWTotal installed solar power in2007

2.5 MWCapacity in 2010

Image 4: Senegalese Sugar Production Companyin Richard-Toll. © www.css.sn

48

maintenance of large-scale renewableenergy power plants. However, the govern-ment does have the capacity to assess andselect proposed projects, thereby ensuringthat developers with sufficient experiencein this sector get preference.

Overall, the main issue for grid-connectedrenewable-based electricity is almostalways related to the fact that proposedselling prices to SENELEC are always aboveits electricity purchase price (CFA 70/kWh– USA 0.14kWh). Senegal needs to capi-talise on existing experience with IPPs tobuild business models for renewableenergy operators and to explore the pote-ntial role of public-private partnerships.Power purchase agreements which focuson variable power and keep the issues ofgrid connection at the forefront need to bedesigned in order to give certainty toinvestors.

B. OFF-GRID APPLICATIONS

DECENTRALISED RURALELECTRIFICATION

This section deals with decentralised elec-trification, motive power for productiveuses and thermal applications (cooling andheating).

Senegal already has a great deal of expe-rience in implementing national and regio-nal projects and programmes to promoteoff-grid applications of renewable energy(PRS/CILSS, PREDAS/CILSS, PERACOD,PROGEDE, etc.).

Solar PV technology has been variously

adapted to provide solutions for elect-rifying health centres, schools, householdsand extending communication networks.The total installed capacity of solar powerin the country increased from 2 MW in2007 to 2.5 MW in 2010, although the useof small aero generators in Senegal islimited and the total installed capacity isestimated to be around 0.5 MW (Ministeredes Energies Renouvelables, 2011).

CSS, a sugar factory in north Senegal,produces electricity for its own cons-umption with an installed capacity of up to48 MW (EcosurAfrique, 2012). Bagassegenerated from plant operations providesfeedstock for a 25 MW co-generation plantwhich currently provides power to theplant but could also power unservedneighbouring towns and villages. The CSS25 MW cogeneration plant is the first Sen-egalese-registered Clean DevelopmentMechanism (CDM) project (Ibid).

ASER has adopted a market model for ruralelectrification that is technology neutraland thereby provides a framework forprivate operators to carry out elect-rification in rural areas using renewableenergy along with other fuels24.

Individuals, enterprises or communitiesgenerating electricity from renewables forself-consumption are governed by one ofthe decrees25 for implementing theprovisions of the Law on RenewableEnergy 2011. This provides the conditionsfor purchase and tariff for surpluselectricity, which can be fed into the gridor sold through decentralised distributionnetworks.

24The rural regions of Senegal that have not yet been electrified have been divided into a total of 11geographical concession areas of which ASER has 10. The electrification of these areas is put out to public tender by ASER and is undertaken by private sector enterprises. The concession model includes the following elements: grid expansion, isolated networks and single homes supply (mainly solar homesystems). The financing of these areas is secured through the Senegalese state and international donors. ASER settled a minimum share of 10% for renewable energies in each concession.

25The Decree 2011-2014 adopted on 21 December 2011 on the conditions for purchase andremuneration of surplus electricity from captive plants generating electricity from renewables.


49

Pilot projects for off-grid electrificationhave been undertaken by educational andtraining institutions, government agenciesat the central and provincial level, as wellas NGOs and institutions in the privatesector. The project to supply electricityundertaken by the University Check AntaDiop of Dakar is particularly noteworthy.

In order to strengthen quality control, twolaboratories have been set up under thesupervision of the Senegalese Associationfor Standardisation (ASN)26 with the spe-cific task of ensuring the adoption of natio-nal standards for photovoltaic components.

Senegal has a great deal of diverse and richexperience in the area of decentralisedelectrification. Many non-state actors areinvolved in the marketing, installation andmaintenance of equipment and systems.

Renewable energy is being increasinglyrecognised as a cost-effective option fordecentralised applications in areas far fromthe grid, given that the cost of gridextension is also a factor of the load. Inremote areas, where expected electricityload is relatively low, the transport cost ofdiesel is high, making renewable hybridsystems with a higher share of renewableenergy technologies cost-competitive.ASER has assessed the economic viabilityof such options and has included thedevelopment of mini-grids for the elec-trification of villages in its concessionsunder “Electrification Rurale par des Ini-tiatives Locales”(ERILS)27.

The Programme for Rural Electrificationand Cooking Fuel (PERACOD) is supp-orting the sustainable development of theenergy sector in Senegal by implementingrural electrification projects through theprivate sector. The Sine Moussa villageelectrification is one illustration ofPERACOD intervention. However, financingfor small projects is limited and usually theinvolvement of local communities in termsof management and responsibility isinsufficient.

MOTIVE AND THERMAL APPLICATIONS

Senegal has long-standing experience inthe deployment of off-grid motive (prim-arily water pumping) and thermalapplications (primarily water heating, alsocooking and drying). Development andmarketing of water pumping solutions hasalso been a focus of the private sector inSenegal. Government incentives includefiscal benefits for importing equipment

26 The laboratories have been set up by Order No 29/MEMI 21 April 1999.

27 ERILs are specification of Senegal and offer high chances for the implementation of renewable energies.

28 SPEC is producing currently PV modules of 50-300 Wp.

Image 5: Sine Moussa Solar Wind Diesel HybridPower Plant © www.peracod.sn

S E N E G A L

50

related to water pumping. Technologies forsolar and wind pumping systems exist inthe country and wind pump sets are alsolocally manufactured. With the setting upof SPEC, it is hoped that the solarapplications customised for use in Senegalwill be assembled by private sectoroperators28.

There have been mixed experiencesregarding the quality of operation andmaintenance (O and M) of installations.Earlier programmes for wind pumpssupported by government ran intoproblems with O and M29, although recentprogrammes seem to have performedbetter. Wind pumps have higher mainte-nance requirements due to their largenumber of moving parts. Current businessmodels work with user charges and theestablishment of a fund for maintenance,administered by the community and theservice provider. The model seems to besuccessful, with high levels of demand andsignificant sums of money being accrued inaccounts to fund O and M as well as plantreplacement at the end of life. In the water-pumping sector communities are incr-easingly employing service managers totake responsibility for operating andmaintaining the system.

Although solar water heating has beenused in urban areas and in rural hospitalsfor more than two decades, maintenanceproblems remain. Strong programmes havebeen initiated by government inpartnership with30 local construction firms.However, business models implementedhave generally lacked incentives to provideafter-sales service.

Operators are responsible for the quality ofinstallation, and in theory there is someinstitutional monitoring. However, therehave been problems with the reliability ofinstallations because nobody is responsiblefor testing heating equipment, even thoughstandards do exist. Although research ins-titutes are operating in this area, their find-ings are frequently not available to theprivate sector.

In order to increase the uptake of solarwater heating equipment, a 35% tax rebateagainst capital cost policy has beenadopted since the early 1980s, althoughthis only benefits tax-paying businesses.

29 Of more than 200 wind pumping systems installed in 1983 and 1984 only 40% were operatingthree years later and even these fell into disrepair.

30 e.g. 1 000 homes installed with panels, and the payment was spread over the life of project,but this failed since there was no responsibility for maintenance.

Image 6: Solar Water Heater in rural area inSenegal ©www.enersol.com

R E N E W A B L E S R E A D I N E S S A S S E S S M E N T

35%Tax rebate against capital cost of solar heating equipment

Other incentives include import tax exem-ptions for equipment relating to thermalheating, a low rate of VAT for local fab-rication and fiscal exemptions for investors.

The use of solar thermal absorptionsystems for cooling buildings is becomingwell-established, and is included in theNational Energy Strategy. Together withgood awareness at government level, thisprovides the basis for taking thetechnology forward.

Universities, institutes and technical andvocational training centres are carrying outtraining programmes and strong efforts arebeing made to involve the private sector inthe ongoing Research and Developmentprogramme on small-scale aero generatorsat the University of Dakar.


Senegal’s RRA highlighted the lack ofcoordination between processes of elab-oration of sectorial policies as the mainissue on decentralised applications. It reco-

mmended that CIMES should play a co-ordinating role in the future in order tostrengthen cooperation across the relevantministries and regulatory agencies, andalso between the private sector andresearch institutes, to achieve better harm-onisation in sectoral policies and comple-mentarity in the intervention of allstakeholders.

The need to strengthen cooperation acrossthe relevant ministries and regulatoryagencies and between private sector andresearch institutes was also highlighted.

One major issue that emerged from theRRA discussions was that the regulator(CRSE) is currently obliged to approvetariffs for electricity supply to the finalconsumer, regardless of the size of theinstallation. This process is time-consumingand acts as a barrier to the implementationof small concessions (ERILs), thus limitingtheir more general implementation. Thereis therefore an urgent need to decentralisethe decision-making process and themeans of capacity development at theCRSE (e.g., setting tariffs locally).

Measures to alleviate this constraint couldinclude, for example, exempting install-ations below a certain capacity (e.g., below50 kW) from requiring regulatory approvalfor the proposed tariff and allowingapproval by village communities. Decen-tralisation of regulatory powers, followingdecentralisation at governmental level, andassociated capacity building at the locallevel to respond to tariff proposals, couldassist the process while advantage couldalso be taken from the existence ofdecentralised governance structures toassist local deployment of renewableenergy technologies.

The understanding of legal issues

51S E N E G A L

Image 7Installation of a small wind turbine at the Univesity of Dakar ©www.eolsenegal.com


concerning renewable energy by localelected representatives, and the capacityof private operators, should be stren-gthened to handle the deployment ofrenewable energy technologies, evaluateproposals for tariffs and assist the elect-rification process.

The participation of micro-finance insti-tutions in the sector should also besupported, which could be done throughtraining and sensitisation in order to buildtheir understanding of renewable energy.

The motive power sector offers good pers-pectives judging by existing experience inthe use of wind turbines for pumping andthe involvement of the private sector in thelocal manufacture of wind pumps. Water-pumping technology using wind is amature technology and there is localexpertise in producing the parts necessaryfor constructing and maintaining windpumps. Improvements in solar technologyare now being made which will allowpumping at the same depth as for wind.Resource availability for solar waterpumping has been assessed and severalcompanies in Senegal already supply solarpumps (e.g., Equiplus and Mattforce).There is also the potential to use multi-functional platforms based on biofuels tosupply motive power; technologyimprovements are still being made formulti-functional platforms although this isdependent on the development of thebiofuels sector. Currently these platformsare diesel-fuelled but,if and when thepossibility to convert to biodiesel becomesavailable, it could provide a local appli-cation for local biofuel production.

There is still a need to build on existingexperience with wind power (e.g., waterpumping) to build expertise and skills inSenegal for O and M, and mechanisms

need to be put in place to transfer skillsfrom project developers to local comm-unities regarding installation andmaintenance.

Another required major action is thestrengthening of domestic manufacturingcapacity to meet poverty reduction-strategy targets. Once capacity has beenstrengthened an equipment testing bodyshould be introduced to ensure that thetechnology meets the establishedstandards and platforms for cooperationwith the private sector and researchinstitutes should be created. For example,meetings should be organised betweensuppliers and equipment manufacturers toidentify the necessary requirements forfurther development or strengtheningcooperation between the private sectorand research institutes.

Targets and policy delivery concerning theinclusion of solar water heating in buildingsare the responsibility of the Ministry ofConstruction, while responsibility forensuring that a building has met legalrequirements is split between the Ministryof Construction (which determines if theinstallation been done) and the Ministry ofRenewable Energy (which check that thesystem is operating as intended). There-fore, effective cooperation across theseministries is necessary.

There is also a need to develop existingproduction capacity for technologies andthe supply chain of components in order tominimise costs. Lessons learnt in earlierprojects at the national or regional levelshould be used to informfuture projects.

From the RRA analyses, it is evident thatthe sector is offering an opportunity forgovernment to provide a major push onthis technology and provide a suitable

53S E N E G A L

private-sector business model thatincludes service provision with necessaryafter-sales service. The sector also offersthe opportunity to link with the govern-ment decentralisation agenda, with localgovernment taking responsibility for waterand health, and also take forward solarheating initiatives linked to local jobcreation and hence economic developmentopportunities. This could be combined withemployment programmes for youngpeople to train in maintenance and service.

C. BIOFUELS FOR TRANSPORT

The development of biofuels in Senegal isrelatively recent and production is small.The CSS31 set up a plant for the productionof bioethanol from sugarcane in 2007 witha target production of 8-12 million litres ofbioethanol per year (ISRA-BAME, 2009) onthe premise that from 2013 the blendingwould be mandatory for ethanol.Production volumes are expected to besufficient for meeting domestic production,although lack of policy support is reflectedin a negligible market demand forbioethanol which has slowed downproduction. Exports of biofuels arerestricted, despite foreign demand.

Good quality, disease-free seeds arerequired for biofuels. Only certified seedsare allowed for the industrial production ofbiofuel and their control and certification isthe responsibility of the Ministry ofAgriculture.

Infrastructure constraints for biodieselcentre around the storage and processingof jatropha seeds. The best storageconditions reduce the loss of oil. Theemergence of modern jatropha processingunits could lead to large-scale productionof biodiesel in the same way that theinvestments done by the CSS have worked

for sugarcane. ISRA is currently distributingfree jatropha seedlings and a decree toallocate more funds to scale up thisprogramme is expected. Small privatefarmers are able to produce biodiesel fromjatropha, using currently available small-scale processing technologies,such asartisanal presses.

There is no currently significant privatefinancing devoted to biofuels. This canpartly be attributed to perceived risks–while micro-finance initiatives exist, theyare unwilling to lend to these projects.


It is not possible to judge the sustainabilityof the overall strategy because enviro-nmental impacts are not assessed at anational level. A project-by-project app-roach is taken instead (for all proposedlarge-scale projects). There is a veryimportant need for training at all levels toraise awareness. Similarly, there is a lowlevel of awareness among the generalpublic.

Image 8: Molasses lake at Senegalese Sugar Company(CSS). © D. Dia 2009

31 CSS has had a distillery in operation for ethanol production of 60 000 litres per day since 2008.


The RRA process has highlighted landownership issues. These issues need to beresolved in order to ensure that land isavailable to meet the needs of the industryand competing pressures. This is comp-licated in Senegal by the complex systemof land ownership and allocation.

There is a real need for capacity buildingacross the sector. Planning, communicationand information provision can beimplemented through the NationalAssembly, Senate and rural communities. Itis possible to use the experience of theMinistry of Energy, regarding fuel forexample, for distribution and networking.The Ministry of Renewable Energy has thecapacity and tools to assess benefits, butlacks expertise in other areas. The NBCneeds technical assistance.

Measures should be taken to follow-up theprogrammes and strategies to determinehow successful production levels are, whatvolumes of oil are being produced, andwhat markets exist for jatropha farmers.The restriction on biofuels export, originallydesigned to ensure that Senegal benefitsfrom the development of the industry, mayalso stunt the development of the market.

The lack of testing and quality control

institutions has also been responsible forthe lack of coordination across actors. Eachinstitute is currently responsible for its ownresearch, and an institute needs to beestablished for testing and quality control.

More work could be carried out on jatrophato understand the business model risksassociated with various parts of the supplychain to help overcome barriers to theMinistry of Economy and Finance lending(e.g., for small-scale producers). The keyissue is to address capacity for small-scalefarmers’ production, and to build a reliablesupply chain for establishing a reliableprice for the product so that farmers canget sufficient return to attract furtherproduction. Priority should be given toaddressing perceived risks in order tofacilitate financing and the transfer oftechnology and human skills.

Agricultural producers have been operatingplants for some time and the advantages –such as employment creation in theoperation stages – are well-known. Forexample, for the typha plant, local peopleare employed to harvest and handle theplants, while biogas production has theadded benefit of producing fertiliser foragriculture.

55S E N E G A LS E N E G A L

R Engage with existing initiatives for data collection,including observatory currently being established byECREEE.

R Identify precise requirements for resource mapping,based on priority areas for RE.

R Establish a plan for collection of data.R Explore the potential for funding ground

measurement campaigns with multilateral/bilateralorganisations.

Elaborate a process forcomprehensive mappingof renewable energyresources in key areas.

R Decentralisation of the regulatory powers accordingto the national decentralisation process.

R Capacity building for the Rural ElectrificationAgency to handle all off-grid tariffs.

R Associate capacity building at the local level torespond to tariff proposals.

Adapt the rules ofintervention for theregulator in the specificcase of small electricityproducers (ERILs).

R Assess potential site infrastructure status.R Conduct studies on grid capacity to uptake variable

renewables sources. R Strengthen SENELEC's human resources technical

capacities.

Facilitate grid integration ofelectricity generated fromrenewable resources.

R Incorpotate land tenure rights into land availabilityassessments.

R Identify potential for higher productivity throughadvances in technology and agriculture.

R Assess environmental, economic and social impactsof strategy implementation.

R Identify the extent and basis of private companyparticipation.

Review the institutional, legaland regulatory conditions forutilising land for biofuelsproduction.

R Identification of priority areas for development ofmanufacturing capacity, including training andeducation requirements to build the necessary skills.

R Creating a forum to support collaboration betweenthe private and research sectors.

Identification of conditionsfor increased private sectorinvolvement in RE-relatedmanufacturing.

R Develop and fund training programmes to addresscapacity gaps.

R Define and formalise legal status and framework forservice providers.

R Incentivise deployment of hybrid technologies.R Introduce standards for quality control testing and

service requirements.

Identify conditions neededfor Oand M (operation andmaintenance) of off-gridmotive and thermal power.

The following schematic identifies the recommended actions from the RRA process. These actionsare not presented in any order of priority, and the list of actions from a rapid assessment is unlikelyto be exhaustive. The detailed list of actions can be found in the Annex.

IV. Recom mended Actions


THE DOMESTIC COMMITMENTTO RENEWABLE ENERGY IS

REFLECTED IN THE ROLE THATSENEGAL HAS ASSUMED

IN REGIONAL ANDINTERNATIONAL FORUMS.

57S E N E G A L

Identified Examples of Good Practice

GOOD PRACTICE DEMONSTRATION 1: BUSINESS MODELS USED FOR RURAL AND OFF-GRID ELECTRIFICATION

Rural electrification, using both conventional and renewable energyresources, has been defined as a key sector to reduce poverty andincrease rural living standards. Senegalese authorities plan to reach a30% rural electrification rate by 2015, and a 60% rate by 2022.Responsibility for meeting the target is in the hands of the SenegaleseAgency for Rural Electrification (ASER), an autonomous body reportingto the Ministry of Energy.

Based on an economic assessment of conditions for electrification, ASERhas defined 10 concessions and has launched tenders for electrificationof these areas in a competitive bidding process. Each bidder will berequired to indicate the percentage funding that they will provide; theremainder will be provided by the government. Each bidder will also berequired to develop a local electrification plan, defining the technologiesto be used.To date, the following concessions have been awarded:

w Concession for Dagana-Podor: awarded to ONE-Maroc

w Concession for Mbour: awarded to ONE-Maroc

w Concession for Kaffrine- Tambacounda-Kédougou: awarded to EDF

V. Best Practices and Future Cooperation


Complementing these concessions aresmall local projects (ERILs), developed bylocal sponsors such as communityassociations and villages. These will also befunded through private/public financing.To date, the level of bilateral funding hasbeen significant.

The case of Sine Moussa village is asuccessful ERIL case where a goodbusiness model has been developed by theoperator. Senegal should build on suchsuccessful initiatives to develop a moreattractive enabling environment forbusiness to encourage operators to enterthe market and reduce the cost of accessand sustainability of rural electrificationschemes.

This model offers a potential to attract theprivate sector with its associated finance,skills and implementing capacity into ruralelectrification.

While the programme is still in process, theexperience of Senegal suggests a numberof actions that may be useful inimplementing a rural electrificationprogramme based on a concessionstructure. These include:

w Definition of an agency with res-ponsibility for rural electrificationand autonomy to define the prog-ramme and method of operation forachieving objectives;

w a transparent approach to tenderingand awarding concessions;

w an approach based on an under-standing of economic conditions andviability;

w an extension of decentralisation at

the government level into ruralelectrification; and

w integration of renewable energy intothe implementation framework.

GOOD PRACTICE DEMONSTRATION 2: LEGAL AND INSTITUTIONALFRAMEWORK

Senegal has shown a strong commitmentto renewable energy, most notably with theestablishment of a dedicated Ministry forRenewable Energy and the passing offramework laws on Renewable Energy andBiofuels at the end of 2010 (Act 2010-21 of20December 2010 and Act 2010-22 of 15December 2010). This commitment iscurrently being tested by a process ofagreeing and finalising the implementingdecrees for these framework laws.However, it is clear that renewable energyis viewed as both important in its own rightand also as an enabler in the broaderdevelopment of the energy sector, ruraldevelopment and poverty reduction.

There are a number of institutions andframeworks dedicated to the furtherdevelopment of renewable energy, notablyCERER (Centre for Studies and Researchinto Renewable Energy) at the Universityof Dakar, and the National Energy for SolarEnergy. More broadly, agencies such asASER (Agence Senegalaise d’ElectrificationRurale), ASN (Association Sénégalaise deNormalisation) and CRSE (Commission deRegulation du Secteur de l' Electricite duSenegal) include renewable energy as acentral part of their remit. Cross-institutional cooperation has been facili-tated by the establishment of anInter-ministerial Committee on RenewableEnergy (CIER) and the National Committeeof Biofuels. Maintaining and extending this

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cooperation will enable ongoing success inthe implementation of Senegal’s vision forrenewable energy. In particular, effortscould be usefully directed at ensuring theparticipation of civil society.

The domestic commitment to renewableenergy is reflected in the role that Senegalhas assumed in regional and internationalforums. At the project level, there are manyexamples of cross-Sahelian initiatives indesign and implementation. At the str-ategic level, Senegal has taken a centralrole in IRENA and ECREEE (ECOWASRegional Centre for Renewable Energy andEnergy Efficiency).

FUTURE COOPERATION

This first pilot study in Senegal has iden-tified a number of areas in which Senegalcan take action to improve readiness forthe deployment of renewables. Many ofthese actions can be taken in the near term,building on the momentum that hasalready been established in the countrythrough recent institutional developmentsin support of renewable energy. The sup-port of bilateral and multilateral insti-

tutions, both now and in the future, is animportant element in the successful real-isation of these actions. This report canserve as a basis for the development ofinternational cooperation on country-leveland regional-level programmes.

At the country level, the report opens upthe possibility of piloting a multilateralinitiative to support feed-in tariffs topromote renewable energy in Senegal. Atthe regional level, Senegal is well posi-tioned to become an active stakeholder inthe Global Solar and Wind Atlas initiativebeing coordinated by IRENA.

In addition to highlighting actions tofurther the deployment of renewableenergy, the pilot study has also providedvaluable inputs to the development of theRRA methodology and process. Theimproved methodology and process werediscussed and amended during a technicalworkshop in April 2012 in Abu Dhabi beforerollout to a number of other ECOWAScountries. It is very much hoped thatSenegal will be able to continue itsexemplary leadership in this process bysupporting this rollout.


AfDB. (2011). The Middle of the Pyramid: Dynamics of the Middle Class in Africa.AfricanDevelopment Bank .

ANSD. (2011). Note d’Analyse des Comptes Définitifs 2008, Semi Définitifs 2009 et Provisoires 2010.Dakar,Sénégal: Agence Nationale de La Statistique et de la Démographie.

APIX. (2006). Code de l’Investissement, Révision: 29/08/06. Dakar, Sénégal: Agence Nationalechargée de la Promotion de l' Investissement et des Grands Travaux.

Bazilian, M., Nussbaume, P., Rogner, H., B.H. A., Foster, B., Pachauri, S., et al. (2011). Energy AccessScenarios to 2030 for the Power Sector in Sub-Saharan Africa.FEEM Working Paper.

Duarte, M., Nagarajan, S., and Brixiova, Z. (2010). Financing of Sustainable Energy Solutions. AfDB.

Eberhard, A., Foster, V., Cecilia, B.G., Ouedraogo, F., Camos, D., andShkaratan, M.(2008).Underpowered: The State of the Power Sector in Sub-Saharan Africa. Washington, DC: TheWolrd Bank.

EcosurAfrique. (2012). ecosureafrique. Retrieved from www.ecosureafrique.com :http://www.ecosurafrique.com/references-reference_detail.php?refid=16

ECOWAS. (2006). White Paper for a Regional Policy: Geared towards increasing access to energyservices for rural and peri-urban populations in order to achieve the Millennium DevelopmentGoals.Economic Commission of West African Countries.

Enda Energie. (2005). Rôle des énergies renouvelables sur le développement des activitésproductives en milieu rural Ouest Africain: le cas du Sénégal. Dakar, Sénégal.

Enefebio. (2007). Synthèse des enquêtes au sein des PMEs au Sénégal.Lettred'information No1, 4 p.

GTZ. (2009). Regional Reports on Renewable Energy 30 Country Analysis on Potentials and Marketsin: West Africa (17), East Africa (5) Central Asia (8).Eschborn: GTZ.

IEA.(2009). World Energy Outlook Perspective.Paris : International Energy Agency.

IRENA.(2011a). Country Profiles – SENEGAL. Abu Dhabi: International Renewable Energy Agency.

VI. References and Bibliography

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IRENA.(2011b). Country Case Study, Renewables Readiness Assessment.SENEGAL PreliminaryFindings.Abu Dhabi: International Renewable Energy Agency.

ISRA-BAME.(2009). Le Sénégal face à la crise Energétique Mondiale: Enjeux de l' Emergence de laFilière des Biocarburants. Dakar: Institut Sénégalais de Recherches Agricoles - Bureau d'AnalysesMacro Economiques.

Lugmayr, M. (2011). ECREEE presentation at the SWAC/OECD Meeting. ECREEE Strategy to PromoteRenewable Energy and Energy Efficiency investments in teh ECOWAS (2011 to 2016).

Ministère de l'Energie - Direction National de l'Energie. (2007).Systèmed’InformationEnergétique.Sénégal.

Ministère de l'Energie. (2008, Février). Lettre de Politique de Développement du Secteur del'Energie (LPDSE). Dakar.

Ministère des Energies Renouvelables. (2011, Décembre). Application de la Loi d'Orientation sur lesEnergies Renouvelables relatif aux conditions d'Achat et de Rémunération de l'Electricité produitepar des Centrales à partir des Sources d'ENR ainsi que les conditions de leur raccordement auRéseaux.Décret No 2011-2013. Dakar, Senegal.

Ministère des Energies Renouvelables. (2011, Décembre).Décret No 2011-2014. Application de la Loid'Orientation sur les Energies Renouvelables relatif aux condition d' Achat et de Rémunération duSurplus d' Electricité d'Origine Renouvelable résultant d'une Production pour Consommation Propre.Dakar, Sénégal.

Ministère des Energies Renouvelables. (2011). Situation Energétique au Sénégal (Etat des lieux etprojections). Bonn.

Ministère des Energies Renouvelables. (2011). Stratégie Nationale des Energies Renouvelables(SNER). Dakar.

Primature (République du Sénégal). (2011). Arrêté PRIMATORAL No 1577. Création, Organisation etFonctionnement du Comite interministériel sur les Energies Renouvelables. Dakar, Sénégal.

République du Sénégal. (2010, Octobre). Document de Stratégie de Réduction de la Pauvreté( DRSPII). Dakar, Sénégal.


République du Sénégal. (2010). Loi No 2010-21. Loi d’Orientation sur les Energies Renouvelables.Dakar, Sénégal.

République du Sénégal. (2010, Décembre 15). Loi No 2010-22. Loi d’Orientation sur lesBiocarburants. Dakar, Sénégal.

SAR. (2012). Société Africaine de Raffinage –Carte d’identité. Retrieved from www.sar.sn:http://www.sar.sn/Carte-d-identite.html

SENELEC.(2012). Senelec– Production. Retrieved from www.senelec.sn:http://www.senelec.sn/content/view/15/66/

SPEC (Sustainable Power Electric Company). (2012). SPEC – Produit. Retrieved fromwww.spec-solar.com: http://www.spec-solar.com/produits/modules-photovoltaiques.html

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Action 1

Adapt the rules of intervention for the regulator in the specific case of small electricity producers (ERILs)

Action Adapt the rules of intervention for the regulator in the specific case of small electricity producers (ERILs).

Resource-Service pair(s) Off-grid electricity, all resources.

Description The regulator (La Commission de régulation du secteur del'électricité du Sénégal, or CRSE) is currently obliged to approvetariffs for electricity supply to the final consumer, no matter whatthe size of the installation. This process is time-consuming and actsas a barrier to small concessions (ERILs), thus limiting their moregeneral implementation. Measures to alleviate this constraint couldinclude, for example, exempting installations below a certaincapacity (e.g., below 50 kW) from requiring regulatory approval forthe proposed tariff and allowing approval by village communities.The decentralisation of regulatory powers, followingdecentralisation at governmental level, and associated capacitybuilding at the local level to respond to tariff proposals, could assistthe process.

Actors CRSE, Ministry of Energy, Ministry of Renewable Energy, privateoperators, SENELEC to participate in review. Educational andtraining institutions for capacity-building in decentralisedinstitutions.

Timing Mid-2012.

Keys for suc cess Engagement by the regulator, improved staffing in the regulator,decentralisation of power and building capacity of the regulator.Such capacity-building activities will be a focus of the future IRENAWork Programme, both in Senegal and elsewhere.

VII. Annex


Action 2Finalise and sign the implementing decrees of the framework laws on renewable energy

Action Finalise and sign the implementing decrees of the framework

laws on RE.

Resource-Service pair(s) On-grid and off-grid electricity, all RE resources.

Description The framework laws on renewable energy provide a structure fordeployment, but this deployment is dependent on finalising theimplementing decrees. These decrees would enhance theattractiveness of RE investment by giving certainty to:

R the conditions of purchase and remuneration for electricity generated from renewable energy plants and the conditions of their connection to the network;

R conditions for purchase and remuneration of surplus electricity from own-generation renewable electricity sources; and

R tax and customs duties applicable to renewable energy equipment.

R Implementation of decrees will require funding sources to be identified and secured, and this should also form part of the action. One particular action that could be explored is the Global Energy Transfer Feed-in Tariff (GET FiT), which seeks to use public sector (or donor) funds to create stable incentives for renewable energy, and in doing so attract private financing into the sector32. Identification of partners willing to support implementation in Senegal would provide a route for securing funding.

R Complementary actions could include exploring funding opportunities with multilateral and bilateral donors and with potential investors from private companies, utilities and commercial banks. Strengthening engagement with the Ministry of Economy and Finance, and awareness-building within the ministry in order to ensure budgetary provision could also be important.

32 For further details and an application to an African country, see W. Rickerson, C. Hanley, C. Laurent, andC. Greacen (2010). Implementing a Global Fund for Feed-in Tariffs in Developing Countries: A Case Studyof Tanzania. World Renewable Energy Congress: 2010.

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Actors The Government of Senegal, Ministry of Energy, Ministry ofRenewable Energy, Ministry of Economy and Finance , donors andother potential investors (private companies, utilities andcommercial banks). IRENA could bring together donors andcountry representatives to investigate a global initiative.

Timing Mid-2012.

Keys for success Finalisation will require consensus on the terms of the text. Theeffectiveness of proposed decrees will depend on the extent towhich they give incentives for renewable energy. The availability offunds to support deployment in the form of feed-in tariffs (and anyother fiscal incentives) will also be crucial and will depend in partupon continued engagement with donors.

Action 3Finalise Policies on the integration of electricity generated from renewable sourcesonto SENELEC’s grid, and define the associated technical and capacity-buildingrequirements for integration

Action Facilitate an agreement on the integration of electricity generatedfrom renewable sources onto SENELEC’s grid, and define theassociated technical and capacity-building requirements forintegration.

Resource-Service pair(s) On-grid electricity, all resources.

Description The Inter-ministerial Committee on Renewable Energy(ComitéInterministérielsur les Energies Renouvelables, or CIER) hasbeen charged with, among other tasks, coordinating the policies forintegration of renewable energy and the grid code. Their finalisation will assure more coherence in integrating renewables onto theinterconnected grid.

Technical aspects of integrating variable energy sources into the gridis an area in which the grid operator, SENELEC, does not have anyexperience, and capacity-building measures in terms of how tomanage these sources will be required.

Actors CIER, SENELEC, Ministry of Renewable Energy, Ministry of Energy,organisations with experience of similar issues in other countries andregions (e.g., Morocco, Egypt).


Timing End 2012.

Keys for success Engagement of SENELEC and adequate resources within SENELEC.Establishing good links and exchanges with other countries withexperience of similar issues can also be valuable – IRENA can play acoordinating role in this.

Action 4 Promote small-scale production of biodiesel

Action Promote small-scale production of biodiesel.

Resource-Service pair(s) Biofuels for transport (and also electricity).

Description Plans for production of biodiesel from the jatropha plant focus onsmall producers, but engagement by these producers is limited bylack of market structures and supply chains. Securing furtherproduction depends, among other factors, on the productiontechnology available to farmers for biodiesel and the ability of farmersto secure financing for projects and sell their output. Actions toaddress this could include:

R setting of the price at which farmers can sell output – this shouldbe set with the finalisation of the implementing decrees on biofuels;

R establish markets for sale of output – as of 2013 this will be supported in part by domestic blending mandates;

R increase availability of financing for farmers wishing to invest in production – this will require better understanding of the technology and associated risks;

R review of technology requirements for improved production, andsubsequent dissemination of the technology and best practices;

and

R development of physical infrastructure as necessary to support distribution of biofuels.

Actors Comité National des Biocarburants (CNB), Directorate of Biofuels andBiomass, Ministry of Energy, Ministry of Agriculture, National RuralCouncillors Association (ANCR), finance institutions.

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Timing Complete action plan by mid-2012.

Keys for success Development of better understanding and awareness of biofuels at all levels, including among farmers, government institutions and the public.

R Further work to understand the business model risks associatedwith various parts of the supply chain to help overcome barriersto micro-finance lending (e.g., for small-scale producers), and dissemination of this work to finance and micro-finance institutions.

R Finalisation of terms on which farmers can sell their output.

Action 5 Improve the institutional, legal and regulatory conditions and modalities for utilising land in support of the National Biofuels Strategy

Action Improve the institutional, legal and regulatory conditions andmodalities for utilising land in support of the National BiofuelsStrategy.

Resource-Service pair(s) Biofuels for transport (and also electricity).

Description In 2006, Senegal launched a National Biofuels Strategy, focusingon the production of ethanol and biodiesel. Under the strategy, thegovernment aims to plant a total of 320 000 hectares of jatrophaby 2012, with each of 320 rural communities planting 1 000hectares of jatropha seedlings provided by the government. Theseseeds will be used to produce a total of 1.2 billion litres of oil tomeet petrol and diesel needs.

Among other factors, realisation of these targets is dependentupon the availability of land for production, the distribution of highquality agricultural inputs and on maintaining production. InSenegal, this needs to take account of the complex structure ofland rights. Associated actions are:

R reviewing land requirements for the successful implementation of the strategy (it will also be necessary to consider other resources, such as water);

R identify land tenure rights wherever possible and incorporate them into land availability assessments;


R Identify the potential for increased productivity through technology advances and agricultural techniques, and how thesecan be secured;

R assess environmental, economic and social impacts of strategy implementation – such assessments are currently conducted ona project-by-project basis; and

R identify the extent and basis of private company participation.

Actors Ministry of Agriculture, Ministry of Renewable Energy (Directorateof Biofuels and of Biomass), Village Community Organisations,Legal Advisor, ISRA and other agricultural research institutions,non-governmental organisations (NGOs).

Timing Mid-2012.

Keys for success Identification and addressing of public concern relating to land usepressures and associated conflicts;

R Inclusive participation of all relevant actors throughout the review; and

R Understanding of current status of the strategy and its implementation.

Action 6Establishment of policy and institutional mechanisms to increase private sector involvement in RE manufacturing

Action Establishment of policy and institutional mechanisms to increaseprivate sector involvement in RE manufacturing.

Resource-Service pair(s) Off-grid and on-grid services, wind and solar resources.

Description Senegal has significant experience in the deployment of certainrenewable energy technologies (e.g., small-scale solar, wind forwater pumping), and some domestic manufacturing capacity hasgrown up around this (most recently SPEC, an assembly facility forsolar panels). There is also a considerable level of research capacityregarding manufacturing (e.g., design and development of solarpumping technology at CERER, the Centre d’Etudes et deRecherchessur les Energies Renouvelables).

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These strengths could be captured to further build manufacturingcapacity in the country, thereby positioning Senegal as a supplier oftechnologies and facilitating local industrial development. As a firststep, a round table of manufacturers and suppliers of technologieswould provide a forum to identify their requirements and actions toaddress these. Other actions include:

R finalising implementing decrees for renewable energy, includingprovisions relating to fiscal treatment of renewable energy technologies. In addition to giving financial incentives, this would also help to ensure market demand;

R identification of priority areas for development of manufacturing capacity;

R identification of training and education requirements to build thenecessary skills for the development of the manufacturing sector;and

R creating a forum to support collaboration between private and research sectors.

Actors Private sector manufacturers and suppliers of equipment, Ministryof Renewable Energy, Ministry of Industry, Ministry of HigherEducation, Ministry of Technical Education, CERER and otherresearch institutes, APIX, foreign investors.

Timing 2012.

Keys for success Participation of key actors and commitment by the Government of Senegal;

R Engagement with foreign investors and/or donors could help tosecure financing for subsequent actions; and

R Review of previous experience regarding manufacturing capacityand research, including success factors (e.g., regarding the closure of the Industrial Society for Applications in Solar Energy).


Action 7 Establish institutional capacity and conditions for improving O and M (Operation and Maintenance) of renewable energy technologies

Action Establish institutional capacity and conditions for improving O and M of off-grid renewable energy technologies.

Resource-Service pair(s) Off-grid motive power (wind and solar); off-grid thermal power(solar).

Description While Senegal has long-standing experience in the deployment ofoff-grid motive (primarily water pumping) and thermal (primarilywater heating, also cooking and drying) power, the long-termlifetimes of each of these systems have been compromised byproblems with O and M. In particular:

R Motive Power: Experience of solar pumping has shown that in cases where O and M services have been provided by third-partyservice companies and paid for by villages using funds from thesale of water, a number of weaknesses have occurred which needto be overcome to assure the viability and sustainability of systems. In particular are the absence of a legal framework, inadequate financial systems to ensure that customers honour their bills and the low competence level of maintenance staff. O and M problems are worse for wind than solar due to wind technology having more moving parts.

R Thermal power: The small current market for new equipment and small number of systems in operation make the market unattractive to private sector suppliers. The absence of standardsand quality testing for equipment entering Senegal compoundsthe difficulties in developing these applications.

There is therefore a need to implement actions to improve O and M provision. Improvements should be based on a reviewwith the parties below and subsequent development and implementation of a plan of action. Preliminary suggestions include:

R Both: Develop and fund training programmes to address capacity gaps.

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Motive Power:

R Define and formalise legal status and framework for service providers

R Incentivise deployment of hybrid technologies.

Thermal Power:

R Introduce standards for quality control testing and service requirements;

R Identify and enable implementation of business models for improved maintenance.

Actors Both: Ministry of Renewable Energy, equipment manufacturers,training institutes.

Motive Power: Village communities, service providers, equipmentmanufacturers, Ministry of Renewable Energy, Ministry ofHydrology, donors.

Thermal Power: Private sector suppliers, equipment providers,Agency for Standards.

Timing Mid-2013.

Keys for success Understanding the motivation of all actors in the supply chain andproviding incentives for them to act as desired; existence ofsufficient organisations with the knowledge, capacity and interestto provide services; general support to the development of marketsfor off-grid motive and thermal power.


Action 8 Elaborate and implement a strategy for comprehensive mapping of resources in key areas

Action Elaborate a process for comprehensive mapping of resources in key areas.

Resource-Service pair(s) Wind, solar and bioenergy, for all applications.

Description There is currently a broad-based understanding of resourceavailability and potential, but this is generally insufficient to enableproject development or a comprehensive assessment of potential.Similarly, there is some data collection from actual projects, but thisis neither comprehensive nor centralised.

Comprehensive data will facilitate the implementation of the draftrenewable energy strategy and future project development.Particular gaps exist in the areas of solar, wind and biofuels;benefits could also be gained from an assessment of bioenergypotential. Likely actions in implementing a mapping process couldinclude:

R engaging with existing initiatives for data collection, including observatory currently being established by the ECOWAS Regional Centre for Renewable Energy and Energy Efficiency (ECREEE);

R identify precise requirements for resource mapping, based on priority areas for renewable energy development;

R establish a plan for collection of data; and

R explore the potential for funding ground measurement campaigns with multilateral/bilateral organisations .

Actors Ministry of Energy, Ministry of Renewable Energy, ECREEE, projectdevelopers, CERER and other research institutes, donors.

Timing Mid-2012 for definition of requirements and establishing protocol,ongoing for data collection.

Keys for success Technical and human resources available for data collection,identifying and securing funds for data collection, establishing aprotocol for sharing data.

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74

THIS FIRST PILOT STUDY IN SENEGALHAS IDENTIFIED A NUMBER OF AREASIN WHICH SENEGAL CAN TAKE ACTIONTO IMPROVE READINESS FOR THEDEPLOYMENT OF RENEWABLES.

MANY OF THESE ACTIONS CAN BETAKEN IN THE NEAR TERM, BUILDINGON THE MOMENTUM THAT HASALREADY BEEN ESTABLISHED IN THE COUNTRY THROUGH RECENTINSTITUTIONAL DEVELOPMENTS INSUPPORT OF RENEWABLE ENERGY.

International Renewable Energy AgencyC67 Office BuildingKhalidiyah [32nd] StreetPO Box 236, Abu DhabiUnited Arab Emirateswww.irena.org

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