energy mix in senegal which one to choose? general directorate apua congress. luanda 2014 safiétou...
TRANSCRIPT
ENERGY MIX IN SENEGAL
WHICH ONE TO CHOOSE?
General Directorate
APUA CONGRESS. LUANDA 2014 Safiétou DIALLO
Technical Adviser
CONTENT
INTRODUCTION/OPENING TO THE PRIVATE SECTOR
ASSESSMENT: 1st FIRST GENERATION OF IPP-GTI AND KOUNOUNE
GAS PRICE RISE: 2ND GENERATION OF IPP GTI
MIX FROM BILATERAL COOPERATION WITH MAURITANIA
MIX FROM SOUTH-SOUTH REGIONAL OMVS PROJECTS
WAPP PERSPECTIVES
WHY INVEST IN SENEGAL?
INTRODUCTION
The Energy Sector is a major support to economic development. and to social and regional inequalities reduction.
The Emergence Strategy reflects the ambition of Senegal to ensure broad and reliable access to cheap energy. Thus. the ESP has the following objectives:
offer one of the lowest electricity prices in the sub-region
(~ 60-80 CFAF/kWh) to support economic competitiveness;
halve the electricity bill of households;
eliminate power outage and related losses by 2017.
increase electrification rate from 25 to 60% in the short-term.
INTRODUCTION
According to the 2013-2017 PPDPS reviving the integrated plan of the power
sub-sector also goes through:
readjusting supply and demand with the operation of new production capacities (1000 MW); diversifying power generation sources to rebalance the energy mix. with options to expand production based on coal. gas. hydropower. solar and wind power; reducing the amount of oil products in the mix from 91% to 45% Reaching a target of 20% for renewable energies in 2017 upgrading and developing the transmission and distribution network : strengthening and securing lines. network expansion
restructuring the power sector by encouraging and sustaining the intervention of private operators and investors in the development of private generation units
INTRODUCTION
The purpose of this presentation is to outline the criteria of energy mix over 2013-2023 for SENELEC generation projects : plants and IPPs and measuring the evolution overtime of the foreign private sector’s interest
A clear option taken by government to attract private sector in the development of IPPs:
- legal and tax incentives
- other measures
WHICH ENERGY MIX TO CHOOSE?
I- FIRST GENERATION OF IPP-GTI AND KOUNOUNE
GTI-2000: 50 MW combined-cycle.
Main shareholder: GE
KOUNOUNE-2008: 67.5 MW fueled with HFO
Main shareholder: MATELEC
WHICH ENERGY MIX TO CHOOSE?
II – SECOND GENERATION OF IPP FOLLOWING RISE IN FUEL PRICE IN 2006
70 MW IPP Diesel Plant in Taiba NDiaye fueled with HFO in 2015
125 MW IPP Coal-fired Plant in Sendou in 2015
AFRICA ENERGY 270 MW Coal-fired Plant in 2017
Renewable energy projects in 2014: 300 MW. 50% of which are solar power and 50% wind power
WHICH ENERGY MIX TO CHOOSE?
MIX FROM BILATERAL CO-OPERATION
Production of natural gas from the Banda deposit (Mauritania)
Power Distribution Network (2017)
Importation of 20 MW HFO-fueled power from Mauritania from October 1st. 2014. and of 20 MW HFO-fueled power in 2016
Production of Natural Gas between 1987 and 2014
Diam Niadio : 235.000.000 Nm3 of gas (8.8 BCF) Gadiaga/Sadiaratou : 245 882 000 Nm3 Nm3 of gas (~ 9.2 BCF BCF) (currently under development)
0
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
60 000 000
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Pro
du
ctio
n (
Nm
3)
Diam Niadio
Gadiaga/Sadiaratou
0
10 000 000
20 000 000
30 000 000
40 000 000
50 000 000
60 000 000
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
Pro
du
ctio
n (
Nm
3)
Diam Niadio
Gadiaga/Sadiaratou
WHICH ENERGY MIX TO CHOOSE?
MIX FROM LOCAL PRODUCTION OF NATURAL GAS
SUB REGIONAL HYDROPOWER PROJECTS
Beside renewable energies. priority should be given to lower cost hydropower projects
WHICH ENERGY MIX TO CHOOSE?
WHICH ENERGY MIX TO CHOOSE?
Hydropower Projects
Site names Equipment debit (m3/s)
Installed power
Average production (GWh)/annum
Gouïna 430 149 620
Koukoutamba 400 294 888
Gourbassi 80 18 60
Boréya 220 114 733
Balassa 125 81 470
Total 656 2.771
SOUTH-TO-SOUTH REGIONAL INTERCONNECTION PROJECTS : WAPP
WHICH ENERGY MIX TO CHOOSE?
Challenges to be faced by IPPs
1- risk of additional cost and timeout: deadlines for implementation: contracting phase and development &building phase – timeframe: 36 months
2- financial risk on the actual cost of IPPs: guarantees. land and tax incentives offered by the STATE. and environmental requirements may result in additional costs
3- delays induced by the tender procedures and regulation of IPPs: risk on administrative procedures.
New incentives:
WHICH ENERGY MIX TO CHOOSE?
2013-2023 INVESTMENT PLAN- UNIT OPERATIONAL COSTS ON THE DECREASE
Total operating expenses decrease from 92.2 to 83.03 CFAF/kWh over 2013-2023.
YEAR OPERATIONAL COST
VARIABLE TOTAL
2013 83.7 92.2
2014 93.53 100.46
2015 59.03 82.72
2016 41.2 85.81
2017 33.63 90.71
2018 32.09 91.88
2019 31.8 93.23
2020 32.3 89.44
2021 32.78 87.03
2022 33.35 84.86
2023 34.15 83.03
ENERGY MIX TRENDSENERGY MIX TRENDS
15
WHY INVEST IN SENEGAL?
7 REASONS FOR INVESTING
1 A stable and open country
2 Sub-regional integration WAEMU-WAPP
3 Modern infrastructure
4 A geographical location: privileged access to regional and international markets
5 Quality human resources
6 Legal and fiscal incentives
7 Sound and competitive economy
16
CONCLUSION
Senegal has remained open to foreign private investors since the past 10 years.
The issue of energy is central to Government’s development and growth strategy
Energy mix is a Government instrument to offer adequate and reliable energy at the lowest cost.
The strategic objective of the mix is to lower the price of electricity in Senegal.
?THE QUESTION IS TO KNOW which energy mix options allow us to
achieve a lower energy cost and to attract investors in our sector…
THANK YOU FOR YOUR KIND ATTENTION