Benin Energy Situation

1.1 Energy situation

Biomass energy constitutes a major contribution to the national energy mix of Benin. Main sources are the forests in the North of the country. Wood products – particularly charcoal – are transported to the South of the country to supply the urban energy markets. Sawdust and agro-waste are other biomass energy sources of minor importance. According to the Ministry of Energy, 69% of the energy consumed in Benin is based on biomass. The major consumers are households. While in urban areas charcoal is the main fuel, the rural households predominantly use firewood. Wood is also used for artisanal food processing (e.g. fish smoking, bread baking and in restaurants). Some industries generate their electricity from agro-waste. Biomass as a fuel is still available in all parts of the country. However, in urban settings – particular in the South – it has become an expensive commodity. The Kenyan Ceramic Jiko - locally called Nansu - is the major improved charcoal burning stove available in the country. According to a study implemented in the first EnDev phase, 23% of the households in the three major cities in the South have at least one improved stove (out of usually 2 stoves usually used parallel in the homes).

Key problems of the energy sector

The key problem of the biomass energy sector in Benin is the unsustainable use of the forest resources. This problem has a supply and a demand side. On the supply side, it is first of all not very clear how much forest is left. Studies (FAO, CENATEL) indicated that the area of forest is decreasing every year. There is a loss of about 116.000 ha of forest per year (situation of 2006). However, a new study is currently undertaking under the supervision of the Ministry of Energy to generate an up to date picture of the situation and this study will be the baseline of EnDev 2 for impact analysing on forests. The exploitation of the forest is at large not planned or controlled. This is the result of a lack of capacity in the national authority responsible for this task. On the demand side, due to low purchase power and cooking habits of larger parts of the population, it is impossible to use other fuels than Biomass-energy. Indeed, according to a study of the Ministry of Energy (2003), 88% of rural population and 85% in urban population use firewood for cooking purpose and 13% of rural population and 36% of urban population uses charcoal for cooking purposes (study made on a national level). The current system of biomass energy-use creates increasingly difficulties for urban and rural households because of rising wood fuel prices. In some areas, cooking and grinding has become one of the biggest items on the list of household expenditures. The government is planning projects on alternative energies to biomass-energy but no concrete actions have been undertaken today. The main ―modern energy‖ alternative for cooking is LPG. However, this is expensive and there are already by now shortages in the supply.

1.2. Policy framework, laws and regulations

The Poverty Reduction Strategy is the key document of the Benin development strategy. The final version of April 2007 was updated and the provisional version of June 2009 is available. In both versions it is mentioned that the ―promotion of rational utilization of Energy in all sectors of activities and/or the ―promotion of […] systems to save wood-energy as elements of a sustainable and equilibrated development of the national territory. The provisional version of June 2009 talks about the ―rational management of the biomass-energy and the energies of substitutions. The Energy Policy and Strategy of Benin was formulated under the supervision of the Ministry of Energy in 2003. According to this document, the overall goals of Benin energy policy are:

• Improve the situation of the commercial balance through the reduction of the energy bill and the improvement of the competitiveness of enterprises producing goods and services,
• Better control of energy and of the national energetic system through a better valorisation of natural resources and a reduction of negative impacts of energy activities on environment,
• Utilization of energy in rural areas for production and a slowing-down of rural exodus to cities,
• A better spatial and technical coherence in investments in energy sector in communal, departmental, national and if possible in over-national plans.

Within the above mentioned ―Energy policy and strategy in Benin‖, there are two specific quotes related to Biomass Energy: ―…the introduction of improved cooking stove in rural and urban areas is marginal in our country. The programs of promotion of improved stoves have not succeeded to increase rapidly the penetration of this kind of stoves. This statement was made before the start of EnDev 1 (end of 2005). ―…the policy of the Benin government in the sector of biomass-energy is to improve the efficiency of the consumption of wood-energy at household level and in the sector of artisanal production by a policy to favouring the access to improved cooking stoves (page 44). The national directorate of forests and of natural resources is mandated with the control of the forest exploitation. However, the current tax policy does not allow for a substantial control of the wood exploitation as the commercial value of wood remains low. Also the laws are not enforced by the state servants. Some actions are planned with Directorate of Forests and Natural Resources together with Directorate of Energy:

• Revision of legislation and forestry rules in the taxation in order to favour planed exploitation of natural resources combined with reforestation,
• Creation of wood-energy markets,
• Organization of the commercial chain in wood-energy.

Based on the above it can be shown, that the promotion of improved cook stoves is fully in line with the energy policy targets and strategy of the Ministry of Energy.1.3. Institutional set up in the energy sector, activities of other donors

Governmental institutions

The Ministry of Energy will be the direct partner of the EnDev Programme. The project will share information with that Ministry and will establish a memorandum of partnership with that Ministry.