Loading...

The Implication of the West African Power Pool (WAPP) to the Electricity Supply Industry (ESI) in Nigeria

Essay 2015 11 Pages

Politics - International Politics - Region: Africa

Excerpt

TABLE OF CONTENTS

1. INTRODUCTION

2. HISTORY, VISION AND MISSION OF WEST AFRICAN POWER POOL

3. ASSESSMENT OF THE WEST AFRICAN POWER POOL

4. AN OVERVIEW OF THE NIGERIAN ELECTRICITY INDUSTRY

5. AN APPRAISAL OF THE WEST AFRICAN POWER POOL’S IMPACT ON THE NIGERIAN ELECTRICITY SUPPLY INDUSTRY

6. CONCLUSION AND RECOMMENDATION

REFERENCES

THE IMPLICATION OF THE WEST AFRICAN POWER POOL (WAPP) TO THE ELECTRITY SUPPLY INDUSTRY (ESI) IN NIGERIA.

BY: ADEDOKUN LUQMAN ADEBAYO[1]

Abstract

This paper discusses the history, vision and mission of the West African Power Pool, as well as its successes and constraints then appraising its impact on the Nigeria electricity supply industry using the doctrinal research methodology.

Keywords

West African Power Pool, Power, Nigeria electricity industry, power generation.

1. INTRODUCTION

In December 1999 the Heads of State and Government of member states of the Economic Community of West Africa States (ECOWAS) created the West African Power Pool (WAPP) with 14 out of 15 member states agreeing to pool together the efforts of their various national electricity utilities. The goal is to create more robust regional power systems that will reduce capital investments expenditure, lower systems operational costs and increase electricity supply and access in the region.[2] Fifteen years down the line, WAPP has had limited impact on the electricity supply of the region, making the region’s aspiration to realize energy security a myth of some sort as over half of the population in the region lacks access to electricity.[3]

Nigeria a member of ECOWAS and a participating country in the WAPP project is expected to contribute immensely to this regional power pool being the region’s primary supplier of natural gas, and also accounting for about 43.4% of regional hydropower generation,[4] yet the country is bedevilled with serious electricity supply problems. Some of which include: high level of transmission and distribution losses. In fact the poor electricity supply in Nigeria makes the country the largest importer of generator in the world as a large number of its citizenry use generators as substitute for failed public electricity supply.[5] This paper shall thus attempt to discuss the paradox of Nigeria’s electricity supply dearth and its role in the realization of the WAPP.

2. HISTORY, VISION AND MISSION OF WEST AFRICAN POWER POOL

The West African power pool (WAPP) is a specialized institution of the Economic Community of the West African States (ECOWAS) consisting of fourteen countries namely: Benin, Burkina Faso, Cote D’Ivoire, Ghana, Niger, Nigeria, Togo, Guinea, Guinea Bissau, Liberia, Mali, Senegal, Sierra Leone, The Gambia generating about 10, 000MW for an average population of about 340 million people within the region.[6]

The vision of WAPP is to integrate the national power systems of participating states into a unified regional electricity market – with the expectation that such mechanism would over the medium to long term, ensure the citizens of ECOWAS member states with a stable and reliable electricity supply at competitive costs.[7]

WAPP’s mission is to promote and develop infrastructure for power generation and transmission, and assure the coordination of electric power exchanges between ECOWAS member states.[8]

With respect to its organizational structure, WAPP has an executive board, organizational committees, a general secretariat, information and coordination centre, administration and finance department, planning investment programming and environmental safeguards department all responsible to the General Assembly created in July 2006 by a joint agreement of National utilities in West Africa.[9]

3. ASSESSMENT OF THE WEST AFRICAN POWER POOL

The West African region produces about 40,000GWh of electricity with thermal plants contributing about 64%, hydro 31%, imported energy sources 5%.[10] Prior to the formation of WAPP cross-border trading of electricity took place between certain countries in the region,[11] however, WAPP’s existence has increased cross-border electricity flow and merged interconnections. For example, gas supply under the West Africa Gas Pipelines supports power production in Ghana.[12]

WAPP’s Master Plan first adopted in 1999 was revised in 2005 and 2012 is being implemented as WAPP’s priority projects – requiring the utilization of diverse energy source in the region for power generation; construction of transmission lines to interconnect countries within the region.[13] It is noteworthy that countries within the region have rich endowments of fossil fuels with great renewable energy potentials[14], although a number of the countries import fuel for power generation.

Out of WAPP’s twenty-four priority projects, four have been commissioned and are operational[15], the remaining are either at implementation stages or pre-investment stage though quite a number of them have failed to meet their commissioning date. To provide energy for the poor, WAPP came up with medium voltage cross-border electrification sub-program with twelve projects. It has successfully commissioned two, six of the projects are under development and the rest at implementation stages.[16]

The Legal framework upon which WAPP operates is the ECOWAS Treaty, the Energy Act or ECOWAS Energy Protocol which establishes the legal framework for securing competitive market. WAPP’s prospects includes: the West Africa Gas Pipeline project, large regional electricity market.

WAPP’s constraints includes: inadequate generation [most of the generating plants in participating countries are aged/old and majorly constructed during colonial period or shortly after independence and are unable to meet current demand]; undiversified energy mix; weak national transmission network; supply problems to three land locked countries; limited interconnection for cross-border electricity trade and lack of funding.[17] The issue of lack of funding is unarguably a major constraint as WAPP’s projects are capital intensive and far exceed the financial capacities of participating member states.[18]

4. AN OVERVIEW OF THE NIGERIAN ELECTRICITY INDUSTRY

Though electricity generation in Nigeria began in 1896,[19] more than a century ago, it can only boast of 40Kw/thousand inhabitants[20] with an installed generation capacity of 10, 000MW with peak generation of 4, 500MW.[21] Only about 40% of the Nigerian population have access to electricity, the poor electricity supply in Nigeria despite its rich endowments in energy sources has created the world’s highest concentration of small-scale power supply, with many Nigerians making use of generators to produce required electricity.[22]

Prior to the power sector reform, the National Electric Power Authority (NEPA) a vertically integrated government monopoly supervised by the Federal Ministry of Power managed the Nigeria electricity industry. As part of the reforms, NEPA metamorphosed to Power Holding Company of Nigeria (PHCN) which following the enactment of the Electric Power Sector Reform Act (EPSRA) 2005 was unbundled into the Transmission Company of Nigeria, 6 generating companies (GenCos) and 11 distribution companies (DisCos) - thus making the Nigeria electricity industry one of the most liberalised in Africa.[23]

The Nigerian Electricity Regulatory Commission (NERC) and the Rural Electrification Agency (REA)[24] were established by the EPSRA, 2005 to oversee, coordinate and regulate the Nigeria electricity industry, the latter body restricted to rural electrification responsible to the Minister of Power.[25] Other relevant authorities in the Nigeria electricity industry includes: Nigerian Bulk Electricity Trading Company Plc (NBET), Nigeria Electricity Liability Management Company, Nigeria Atomic Energy Commission, Energy Commission of Nigeria.

The laws regulating the sector include the EPSRA, 2005, the Constitution of the Federal Republic of Nigeria, 1999 (as amended) and state laws like Ekiti State Electricity Board Law 2012[26].

The Nigerian electricity industry is powered mainly by thermal and hydro power-plants but the country is endowed with other natural resources that can improve its energy mix to include: coal, solar, wind, nuclear, modernised biomass. Issues like pipeline vandalism, theft of transmission cables are recurrent problems hampering the effectiveness and efficiency of the Nigeria electricity industry. Another problem in the Nigeria electricity supply industry is the neglect and/or refusal of public authorities to pay up their electricity bills.[27]

[...]


[1] PhD Student in the field of Environmental Law and Sustainable Development at the Atlantic International University, Honolulu, Hawai, United States.

[2] Manji Cheto, Kathryn Brooks (2013) Africa In-Depth West Africa: Pooling together for Power retrieved from africapractice.com accessed last on 19/09/2015

[3] Ibid

[4] Ibid

[5] Akin Iwayemi, ed. Energy Resources and Development in Nigeria retrieved from www.naee.org.ng/files/EnergyResourcesandDevelopmentinNigeria.pdf accessed last on 29/09/2016

[6] Babtunde Adeyemo (2014) West African Power Pool [a paper presented at South Asia Regional Workshop on Competitive Electricity Markets, held at Colombo Sri Lanka]

WAPP took a clue from the South African Power Pool developed by a team of researchers from Purdue University, USA on this see Dike, D.O and Obah, O.B ‘Restructuring of the West African Power Pool (WAPP) Transmission System Purdue Model

[7] Ibid

[8] Ibid

[9] Ibid

[10] Ibid

[11] For example between 1979 – 1989 Nigeria and Ghana traded excess capacity, while Nigeria also supplied Niger with electricity

[12] Beks Dagogo-Jack (2012) Status of Nigeria Power Reform [a paper presented at the Annual West African Power Industry Convention (WAPIC) 2012] for the Presidential Task Force on Power retrieved from www.nigeriapowerreform.org accessed last on 29/09/2015

[13] Babatunde Adeyemo (2014) op cit

[14] Nigeria and Ghana have huge oil and gas resources [recently Cote D’Ivoire discovered oil reserves in its coastline borders with Ghana]; Senegal, Niger and Nigeria have huge coal reserves. Guinea has huge water resources; and all the countries in the region have great potentials for solar and biomass power generation.

[15] The operational projects include: 330KV Aboadze (Ghana) – Volta (Ghana) commissioned in 2010; the 330KV Sakete (Benin) – Ikeja West (Nigeria) commissioned in 2007; the 225KV Bobo Dioulasso (Burkina Faso) – Ouagadougou (Burkina Faso) commissioned in 2009; the Ferkessedougou (Cote D’Ivoire) – Sikasso (Mali) – Segou (Mali) commissioned in 2012. On this, see Babatunde Adeyemo (2014) op cit

[16] Babatunde Adeyemo (2014) op cit under the medium voltage cross-border electrification sub-program there has been electrification of 12 rural communities in Togo from Ghana; 7 rural communities in Burkina Faso also from Ghana

[17] Ibid

[18] Retrieved from ecowapp.org accessed last on 27/03/2016

[19] Ayodele Oni (2013) “The Nigerian Electric Power Sector – Policy, Law, Negotiation strategy, Business” printed by CI – Plus Nigeria at page 2

[20] Beks Dagogo-Jack (2012) op cit

[21] Investment Opportunities in the Nigerian Power Sector retrieved from www.nigeriapowerreform.org accessed last on 29/09/2015. Klut Findt, De Buy Scott and Dr Christain Lindfield (2014) Sub-Saharan Africa Power Outlook obtained from kpmg.co.za last visited 29/09/2015 submit that Nigeria’s installed capacity is 11, 542.2MW as at 2014 and access to electricity was 50% of the population

[22] Klut Findt, De Buy Scott and Dr Christain Lindfield (2014) op cit

[23] Ibid

[24] See Sections 32 and 88 of the Electric Power Sector Reform Act, 2005

[25] Basically the Federal Ministry of Power and NERC maintain oversight functions over the power sector, while bodies like the Presidential Task Force on Power, Bureau for Public Enterprises, and Presidential Action Committee on Power played contributory roles in the power sector reform.

[26] This law establishes the Electricity Board of Ekiti state as a body corporate with powers and responsibilities with includes: the power to establish state electric power stations. On this see Section 5 of the Ekiti state Electricity Board (Establishment) Law, 2012

[27] The unpleasant altercation that occurs when agents of DisCos approach these public authorities is far to be desired for the effectiveness of the power sector. Reports of Military men beating up distributing companies staff who approach the authority for payment of their electricity bills or attempt to disconnect them for failing to pay their bills regrettably abound.

Details

Pages
11
Year
2015
ISBN (eBook)
9783668417281
ISBN (Book)
9783668417298
File size
514 KB
Language
English
Catalog Number
v356773
Grade
Tags
West African Power Pool Power Nigeria electricity industry power generation

Author

Share

Previous

Title: The Implication of the West African Power Pool (WAPP) to the Electricity Supply Industry (ESI) in Nigeria