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Difference between revisions of "Benin Energy Situation"

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== 1. Situation Analysis  ==
 
  
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== 1.1 Energy situation  ==
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{{CES Country|CES Country Name=Benin
 +
|CES Country Capital=Porto Novo
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|CES Country Region Africa = Sub-Saharan Africa
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|CES Country Coordinates=6.4667° N, 2.6000° E
 +
}}
  
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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).
+
= Introduction =
  
−
= Key problems of the energy sector  =
+
Benin is a least developed country in West Africa with a small southern coastline on the Bight of Benin where a majority of the population llives. Benin covers an area of approximately 110,000 km² (1/3 of the area of Germany), with a population of approximately 10.88 million ([http://www.worldbank.org/en/country/benin World Bank], 2015). Classified as a low-income country, Benin is ranked 166th out of 188 on the 2015 UNDP Human Development Index ([http://hdr.undp.org/sites/default/files/2015_human_development_report.pdf UNDP], 2015). About 75 % of the population live on less than $ 2 a day (World Bank, 2006). In 2010, 41 % of Benin’s population was living in urban areas, and the projections of the National Institute of Statistics and Economic Analysis predicted that by 2025 approximately 60 % of the population will live in cities, mainly located in the coastal areas.
  
−
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.
+
[[Benin Energy Situation#toc|►Go to Top]]
  
−
== 1.2. Policy framework, laws and regulations ==
+
<br/>
  
−
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:
+
= Energy Situation =
  
−
*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,  
+
Benin's total energy consumption in 2009 was 3,475 ktoe (World Bank, 2009). The per capita energy consumption in the same year was 0.404 toe. This is about half of the average per capita energy consumption for Sub-Sahara African countries, and less than a quarter of the world average (World Bank, 2009).
−
*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:
+
Like for most countries in Sub-Saharan Africa, Benin's energy sector is largely dominated by the use of biomass-based energy sources (59.4%) (Tableau de Bord de l'Energie au Bénin, 2005), followed by petroleum products (38.4%) and, to a lesser degree, electricity (2.2%).<br/>
  
−
*Revision of legislation and forestry rules in the taxation in order to favour planed exploitation of natural resources combined with reforestation,  
+
The country solely depends on imports to satisfy its petroleum product demand, while 85% of its electricity consumption is answered by imports from Ghana, Cote d’Ivoire and Nigeria. Households account for 48% of the country’s total electricity consumption followed by the institutional sector and the industrial sector, which account for 32% and 24% respectively. Although in the five past years the final total energy consumption has perceptibly increased, the structure of final energy consumption has not changed. In 2010 the national electrification rate was at 27% with 4% in rural areas and about 54% in urban areas. The length of domestic tranmission and distribution lines is 5620 km and the length of transnational lines is 618 km.
−
*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
+
The country is 100% dependent on petroleum imports, making it vulnerable to dollar exchange rates and fluctuations in oil prices. Moreover, fluctuations in fossil fuel prices compromise Benin’s domestic capacity to develop its energy services.
  
−
'''Governmental institutions'''
+
While Benin has a large hydroelectricity potential only one major hydroelectric site currently functions. Development of over 80 pre-identified sites using micro-hydro applications would help Benin increase its energy resilience.
  
−
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.
+
The country has a huge and untapped renewable energy potential. Although with low levels of domestic capital formation and little internal capacity (engineers, technicians etc.) this potential is not being realised. The absence of hazard or siting maps for equipment installation means that Benin’s existing energy infrastructure remains extremely vulnerable to anticipated climate change impacts. While Benin’s National Adaptation Plan of Action notes the necessity of an emergency response plan to deal with the impacts of metrological extreme events, this plan has yet to be developed.
  
−
[[Category:Benin]]
+
[[Benin Energy Situation#toc|►Go to Top]]
−
[[Category:Country Situation]]
+
 
 +
== Major Challenges in Energy Sector<br/> ==
 +
 
 +
The energy sector is under constant pressure from different challenges.
 +
 
 +
However, main issues in the energy sector are as follows:
 +
 
 +
*Non-sustainable use of biomass: Around 80% of the population depends on the use of biomass for cooking needs. While consumption has increased between 1997 and 2002 at an annual rate of 5&nbsp;%, forest areas were reduced by 22.8&nbsp;% (i.e. 1.2 million hectares) from 1990 to 2010 (FAO). Since 2004, there is an overall shortfall in the supply of fuel wood energy at the national level, with wide variation at the regional level. This results in a massive degradation of forest resources.
 +
*Low access rate to electricity in rural areas: while the national power board SBEE has increased the electrification rate in urban areas from 20 to 52.4&nbsp;% since 1990, only 2&nbsp;% of rural areas are connected to the grid. At the same time, around 60% of the population lives in rural areas.
 +
*Electricity generation constraints Since early 2007,Benin has been going through an energy crisis due to curtailed supply from its neighbors Ghana and Cote d’Ivoire. Lack of operational capacity at the distribution utility SBEE did reinforce the crisis. Following a brief recovery at the end of 2007 after the rainy season, in mid-2008 Benin was again subject to energy shortages. However, the long term stability in the target region is assured. The reasons are ongoing investments in transmission lines interconnecting North and South Benin, Benin and Togo as well as Benin and Nigeria and the intended extension of generation capacities conducted by '''Compagnie Electrique du Bénin (CEB)'''.
 +
 
 +
<br/>
 +
 
 +
Furthermore, Power Africa adds these issues and bottlenecks as the biggest for the country's energy sector<ref name="Power Africa. (2018). Benin Factsheet. Retrieved from: https://www.usaid.gov/sites/default/files/documents/1860/Benin_-_November_2018_Country_Fact_Sheet.pdf">Power Africa. (2018). Benin Factsheet. Retrieved from: https://www.usaid.gov/sites/default/files/documents/1860/Benin_-_November_2018_Country_Fact_Sheet.pdf</ref>:
 +
 
 +
*National utility SBEE requires operational and financial support<br/>
 +
*Unclear legal or regulatory framework for and limited experience with Independent Power Producers (IPPs)&nbsp;<br/>
 +
*Nascent off-grid sector<br/>
 +
 
 +
[[Benin Energy Situation#toc|►Go to Top]]
 +
 
 +
<br/>
 +
 
 +
== Key Problems Hampering Access to Electricity ==
 +
 
 +
Although the Government of Benin clearly defined a strategy for rural electrification, the objective of achieving a rural electrification rate of 40% in 2015 is highly ambitious due to the following reasons:
 +
 
 +
SBEE is far from being capable of achieving these goals due to insufficient financial capacities: SBEE’s indebtedness is 9 times as high as its turnover and financial losses are increasing continuously, since the supply costs per kWh exceed the retail price; not only but mainly in areas provided by diesel generators.
 +
 
 +
In addition to the financial bottleneck, one important reason is the ack of knowledge about low-cost alternatives to the business as usual scenario of grid extension. This scenario was designed originally for urban areas based on high technical “EDF” standards that are inappropriate for rural areas.
 +
 
 +
Furthermore, for political reasons, SBEE focuses on the <u>extension of the grid to previously non-electrified regions</u>, instead of increasing the number of connected households in proximity to the grid.
 +
 
 +
Although some responsibilities for rural electrification have been shifted to ABERME, the agency proved to be incapable of driving the electrification process. <u>Lack of capacity</u> is the main reason, especially the lack of engineering expertise.
 +
 
 +
[[Benin Energy Situation#toc|►Go to Top]]
 +
 
 +
= Institutional Set-up in the Energy Sector<br/> =
 +
 
 +
There are four main governmental actors in the electricity sector:
 +
 
 +
*Communaute Electrique du Benin(CEB): CEB is a bipartite utility supplying electricity to national distribution utilities in Benin and Togo (around 85% of generation capacity).
 +
*Societe Beninoise d’Energie Electrique(SBEE): Responsible for electricity distribution and local generation through diesel generators (around 13% of generation capacity).
 +
*Agence Beninoise d’Electrification Rurale et de Maitrise d’Energie(ABERME): responsible for rural energy supply (established in 2004).
 +
*Ministere de l'Energie, des Recherches Pétrolières et Minières, de l'Eau et du Développement des Energies Renouvelables (MERPMEDER): responsible for the national energy policy and coordination of the activities in the energy sector.
 +
 
 +
Main actors from the private sector are for solar products and installations:
 +
 
 +
*'''L'Association Inteprofessionnel des Spécialistes des Energies Renouvelables du Bénin '''([http://www.aiser-benin.org AISER - Bénin]) / The Interprofessional Association for Renewable Energy Specialists: is an "an association for promotion and advocacy of the renewable energy in Benin"<ref>http://aiser-benin.org/lassociation/qui-sommes-nous/</ref>. AISER was created in 2011 <ref>http://levenementprecis.com/2011/10/31/creation-de-l%E2%80%99association-interprofessionnelle-de-specialistes-des-energies-renouvelables-au-beninl%E2%80%99aiser-pour-aider-le-gouvernement-dans-le-developpement-des-energies-renouvelables/</ref>, and today has around fifty organisations (companies, NGOs, academics ...) specialized in renewable energies. The main objective is to contribute to the development of renewable energy across Benin.
 +
*'''ECOSOLARIS AFRIQUE SARL '''is a canadian enterprise specialised dans l’énergie solaire présente au Bénin depuis Février 2013. Elle est une succursale des Entreprises Ecosolaris inc, leader canadien de l’énergie solaire, distributeur depuis plusieurs années des produits de qualité Nord-Américains, Européens, Australiens et Asiatiques qui a su développer une expertise sur le terrain dans les installations hors réseau pour les systèmes à la fois photovoltaïque et thermique. Ecosolaris Afrique vend des produits de '''Barefoot Power LTD '''et '''Flexyway solar.'''
 +
*'''BONERGIE BENIN SARL '''was founded in 2012 with support of the German social company BONERGIE. Bonergie is selling Sun Tranfer products (see also [http://www.bonergie.com/english/produkte.html http://www.bonergie.com/english/produkte.html]).
 +
*'''Objectifs SARL '''which is selling Sun King products of the US company greenlight planet
 +
 
 +
<br/>
 +
 
 +
= Policy Framework, Laws and Regulations =
 +
 
 +
In order to tackle the challenges in the energy sector the government of Benin has formulated the Policy and Strategy Document for the Development of the Electricity Sector that provides the long term vision and the strategy of the country by 2025.
 +
 
 +
The overall energy strategy can be summarised as follows:
 +
 
 +
*strengthening the legal and institutional framework;
 +
*ensuring reliable electricity supply to support economic activities and achieve the national energy security and an efficient energy delivery system with an optimal energy resource mix;
 +
*increasing energy access to population through new power generation plants, regional interconnection and rural electrification;
 +
*promoting private investments in the power sector by creating the enabling market environment for private sector participation
 +
*promoting energy efficiency in all sector.
 +
 
 +
Regarding rural electrification, it aims at providing 150 villages p.a. with access to electricity in order to achieve a rural electrification rate of 30–40&nbsp;% by 2015. Furthermore, promoting the dissemination of improved stoves and other renewable domestic energy sources are additional objectives of the strategy to tackle the energy challenges in rural areas.
 +
 
 +
In the run of the energy sector reform, which gained considerable momentum in recent months (mainly due to growing World Bank interest in the sector), the establishment of a Rural Electrification Fund is being discussed. It shall incorporate a concession model with minimum subsidy bidding. The Fund is intended to bundle investments of donor agencies designated to rural electrification. Rural regions covered by the SBEE grid will also be concessioned(15 concessions in total). However, basic features of this instrument are yet unclear such as regulation, payment authorisation and tariffing. Experiences in Senegal and Mali, furthermore, expose a very limited interest of private enterprises to compete for such funds. Concerning the national and even regional private sector, the mobilisation of financial resources is less an impediment than lacking capacities to implement privately run electricity concessions in Benin.
 +
 
 +
The reform process goes along with a shift in responsibilities for rural electrification from SBEE to ABERME. It is, furthermore, planned to split up SBEE into an asset management and a distribution management company<u>.</u>
 +
 
 +
[[Benin Energy Situation#toc|►Go to Top]]
 +
 
 +
== Internationally funded projects ==
 +
 
 +
The French Agency for Development (AFD) is preparing a project to support the restructuration and extension of the grid in the region Abomey-Calavi and the Atlantic Department. The project is cofounded by the EU and the European Investment Bank.
 +
 
 +
The African Development Bank (AfDB) finances a project to restructure and reinforce power generation and electricity distribution of the utility SBEE in Cotonou, Porto Novo, Parakou, Bohicon, and Lokossa
 +
 
 +
The World Bank is implementing the following projects:<br/>The “Increased Access to Modern Energy” supported by several banks including the KfW is intended to increase the number of customers connected to the grid. The project is comprised of four components: (A) Electrical Network Upgrading, (B) Electrification and Modern Energy Services, (C) Sustainable Energy Services and (D) Project Preparation.<br/>Component A supports the upgrading of the existing transmission and distribution grid. The planned activities include the construction of two transmission lines, rehabilitation of distribution networks in key urban centers, installation of prepaid meters and measures to enhance lighting and appliance efficiency to help reduce peak load and energy consumption.<br/>Component B supports the provision of modern energy services in rural areas. Component C supports the provision of technical assistance to improve the financial autonomy and performance of key sector institutions and enhance the capacity to better plan and regulate Benin's energy sector. Component D aims at supporting planning of new projects such as the hydropower project in Adjarala.<br/>The World Bank also supports the construction of the barrage for the hydropower plant in Adjarala. The project is co-financed by AfDB.<br/>In addition the World Bank with funding from KfW and European Investment Bank executes a project to strengthen power transmission between Togo and Benin.
 +
 
 +
BMZ finances activities of GIZ to strengthen the capacity of the West African Power Pool. In addition BMZ provides funds for KfW to rehabilitate the hydropower plant in Nangbeto. KfW is also financing the transmission line between Sakété and Porto Novo.
 +
 
 +
On behalf of six donors, the Energising Development Program (EnDev) executed by GIZ is supporting grid extension, grid densification, picoPV system and dissemination of improved stoves
 +
 
 +
The European Union is supporting the «&nbsp;Centre d'Information et de Contrôle (CIC)&nbsp;» of the West African Power Pool.
 +
 
 +
== Energy Planning ==
 +
 
 +
With the help of the the Open Source Spatial Electrification Tool (OnSSET) 21 electrification pathways were&nbsp;examined for Benin in 2018. The tool leverages geo-spatial information and uses a least-cost approach to identify the most cost effective electrification solution in each settlement. Results show that 58-92% of the population in 2030 is expected to receive electricity from the grid. The remaining 8-42% is expected to gain electricity access through mini-grids or stand-alone systems. The total investment cost required to achieve universal electrification in Benin by 2030, ranges from 1.2 to 5.9 billion USD, depending on the level of service provided and technology cost developments.<ref>ELECTRIFICATION PATHWAYS FOR BENINA spatial electrification analysis based on the Open Source Spatial Electrification Tool (OnSSET). 2018. http://www.onsset.org/uploads/1/8/5/0/18504136/electrification_pathways_for_benin.pdf</ref>
 +
 
 +
*Check out the mapping at https://electrifynow.energydata.info/countries/BJ/models
 +
 
 +
 
 +
= Further Information =
 +
 
 +
*[[EnDev_Bénin|EnDev Benin Hub]]
 +
*[[Portal:Countries|Country portal on energypedia]]
 +
*[[Rural Electrification in Benin *French*|Rural Electrification in Benin (French)]]
 +
*USAID Power Africa: [https://www.usaid.gov/sites/default/files/documents/1860/Benin_-_November_2018_Country_Fact_Sheet.pdf Benin Factsheet]&nbsp;
 +
*Case study: "[[:File:Analysis_of_Quality_Infrastructure_Services_Offered_in_Benin_and_Potential_for_Development.pdf|Analysis of Quality Infrastructure offered in Benin and Potential for Development]]" with insights into quality assurance for renewable energies in the context of climate change mitigation and adpation; as part of the publication "[[:File:Quality_Infrastructure_for_Climate_Change_Mitigation_and_Adaptation_in_Sub-Saharan_Africa.pdf|Quality Infrastructure for Climate Change Mitigation and Adaptation to Climate Change: Potentials, Opportunities and Chances in Sub-Saharan Africa]]." PTB, 2019
 +
 
 +
<br/>
 +
= References =
 +
 
 +
<references />
 +
 
 +
<br/>[[Benin Energy Situation#toc|►Go to Top]]

Latest revision as of 08:23, 12 February 2024


Benin
Flag of Benin.png
Location _______.png

Capital:

Porto Novo

Region:

Sub-Saharan Africa

Coordinates:

6.4667° N, 2.6000° E

Total Area (km²): It includes a country's total area, including areas under inland bodies of water and some coastal waterways.

114,760

Population: It is based on the de facto definition of population, which counts all residents regardless of legal status or citizenship--except for refugees not permanently settled in the country of asylum, who are generally considered part of the population of their country of origin.

13,352,864 (2022)

Rural Population (% of total population): It refers to people living in rural areas as defined by national statistical offices. It is calculated as the difference between total population and urban population.

50 (2022)

GDP (current US$): It is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradation of natural resources.

17,396,792,700 (2022)

GDP Per Capita (current US$): It is gross domestic product divided by midyear population

1,302.85 (2022)

Access to Electricity (% of population): It is the percentage of population with access to electricity.

41.97 (2021)

Energy Imports Net (% of energy use): It is estimated as energy use less production, both measured in oil equivalents. A negative value indicates that the country is a net exporter. Energy use refers to use of primary energy before transformation to other end-use fuels, which is equal to indigenous production plus imports and stock changes, minus exports and fuels supplied to ships and aircraft engaged in international transport.

46.59 (2014)

Fossil Fuel Energy Consumption (% of total): It comprises coal, oil, petroleum, and natural gas products.

36.72 (2014)

Source: World Bank


Introduction

Benin is a least developed country in West Africa with a small southern coastline on the Bight of Benin where a majority of the population llives. Benin covers an area of approximately 110,000 km² (1/3 of the area of Germany), with a population of approximately 10.88 million (World Bank, 2015). Classified as a low-income country, Benin is ranked 166th out of 188 on the 2015 UNDP Human Development Index (UNDP, 2015). About 75 % of the population live on less than $ 2 a day (World Bank, 2006). In 2010, 41 % of Benin’s population was living in urban areas, and the projections of the National Institute of Statistics and Economic Analysis predicted that by 2025 approximately 60 % of the population will live in cities, mainly located in the coastal areas.

►Go to Top


Energy Situation

Benin's total energy consumption in 2009 was 3,475 ktoe (World Bank, 2009). The per capita energy consumption in the same year was 0.404 toe. This is about half of the average per capita energy consumption for Sub-Sahara African countries, and less than a quarter of the world average (World Bank, 2009).

Like for most countries in Sub-Saharan Africa, Benin's energy sector is largely dominated by the use of biomass-based energy sources (59.4%) (Tableau de Bord de l'Energie au Bénin, 2005), followed by petroleum products (38.4%) and, to a lesser degree, electricity (2.2%).

The country solely depends on imports to satisfy its petroleum product demand, while 85% of its electricity consumption is answered by imports from Ghana, Cote d’Ivoire and Nigeria. Households account for 48% of the country’s total electricity consumption followed by the institutional sector and the industrial sector, which account for 32% and 24% respectively. Although in the five past years the final total energy consumption has perceptibly increased, the structure of final energy consumption has not changed. In 2010 the national electrification rate was at 27% with 4% in rural areas and about 54% in urban areas. The length of domestic tranmission and distribution lines is 5620 km and the length of transnational lines is 618 km.

The country is 100% dependent on petroleum imports, making it vulnerable to dollar exchange rates and fluctuations in oil prices. Moreover, fluctuations in fossil fuel prices compromise Benin’s domestic capacity to develop its energy services.

While Benin has a large hydroelectricity potential only one major hydroelectric site currently functions. Development of over 80 pre-identified sites using micro-hydro applications would help Benin increase its energy resilience.

The country has a huge and untapped renewable energy potential. Although with low levels of domestic capital formation and little internal capacity (engineers, technicians etc.) this potential is not being realised. The absence of hazard or siting maps for equipment installation means that Benin’s existing energy infrastructure remains extremely vulnerable to anticipated climate change impacts. While Benin’s National Adaptation Plan of Action notes the necessity of an emergency response plan to deal with the impacts of metrological extreme events, this plan has yet to be developed.

►Go to Top

Major Challenges in Energy Sector

The energy sector is under constant pressure from different challenges.

However, main issues in the energy sector are as follows:

  • Non-sustainable use of biomass: Around 80% of the population depends on the use of biomass for cooking needs. While consumption has increased between 1997 and 2002 at an annual rate of 5 %, forest areas were reduced by 22.8 % (i.e. 1.2 million hectares) from 1990 to 2010 (FAO). Since 2004, there is an overall shortfall in the supply of fuel wood energy at the national level, with wide variation at the regional level. This results in a massive degradation of forest resources.
  • Low access rate to electricity in rural areas: while the national power board SBEE has increased the electrification rate in urban areas from 20 to 52.4 % since 1990, only 2 % of rural areas are connected to the grid. At the same time, around 60% of the population lives in rural areas.
  • Electricity generation constraints Since early 2007,Benin has been going through an energy crisis due to curtailed supply from its neighbors Ghana and Cote d’Ivoire. Lack of operational capacity at the distribution utility SBEE did reinforce the crisis. Following a brief recovery at the end of 2007 after the rainy season, in mid-2008 Benin was again subject to energy shortages. However, the long term stability in the target region is assured. The reasons are ongoing investments in transmission lines interconnecting North and South Benin, Benin and Togo as well as Benin and Nigeria and the intended extension of generation capacities conducted by Compagnie Electrique du Bénin (CEB).


Furthermore, Power Africa adds these issues and bottlenecks as the biggest for the country's energy sector[1]:

  • National utility SBEE requires operational and financial support
  • Unclear legal or regulatory framework for and limited experience with Independent Power Producers (IPPs) 
  • Nascent off-grid sector

►Go to Top


Key Problems Hampering Access to Electricity

Although the Government of Benin clearly defined a strategy for rural electrification, the objective of achieving a rural electrification rate of 40% in 2015 is highly ambitious due to the following reasons:

SBEE is far from being capable of achieving these goals due to insufficient financial capacities: SBEE’s indebtedness is 9 times as high as its turnover and financial losses are increasing continuously, since the supply costs per kWh exceed the retail price; not only but mainly in areas provided by diesel generators.

In addition to the financial bottleneck, one important reason is the ack of knowledge about low-cost alternatives to the business as usual scenario of grid extension. This scenario was designed originally for urban areas based on high technical “EDF” standards that are inappropriate for rural areas.

Furthermore, for political reasons, SBEE focuses on the extension of the grid to previously non-electrified regions, instead of increasing the number of connected households in proximity to the grid.

Although some responsibilities for rural electrification have been shifted to ABERME, the agency proved to be incapable of driving the electrification process. Lack of capacity is the main reason, especially the lack of engineering expertise.

►Go to Top

Institutional Set-up in the Energy Sector

There are four main governmental actors in the electricity sector:

  • Communaute Electrique du Benin(CEB): CEB is a bipartite utility supplying electricity to national distribution utilities in Benin and Togo (around 85% of generation capacity).
  • Societe Beninoise d’Energie Electrique(SBEE): Responsible for electricity distribution and local generation through diesel generators (around 13% of generation capacity).
  • Agence Beninoise d’Electrification Rurale et de Maitrise d’Energie(ABERME): responsible for rural energy supply (established in 2004).
  • Ministere de l'Energie, des Recherches Pétrolières et Minières, de l'Eau et du Développement des Energies Renouvelables (MERPMEDER): responsible for the national energy policy and coordination of the activities in the energy sector.

Main actors from the private sector are for solar products and installations:

  • L'Association Inteprofessionnel des Spécialistes des Energies Renouvelables du Bénin (AISER - Bénin) / The Interprofessional Association for Renewable Energy Specialists: is an "an association for promotion and advocacy of the renewable energy in Benin"[2]. AISER was created in 2011 [3], and today has around fifty organisations (companies, NGOs, academics ...) specialized in renewable energies. The main objective is to contribute to the development of renewable energy across Benin.
  • ECOSOLARIS AFRIQUE SARL is a canadian enterprise specialised dans l’énergie solaire présente au Bénin depuis Février 2013. Elle est une succursale des Entreprises Ecosolaris inc, leader canadien de l’énergie solaire, distributeur depuis plusieurs années des produits de qualité Nord-Américains, Européens, Australiens et Asiatiques qui a su développer une expertise sur le terrain dans les installations hors réseau pour les systèmes à la fois photovoltaïque et thermique. Ecosolaris Afrique vend des produits de Barefoot Power LTD et Flexyway solar.
  • BONERGIE BENIN SARL was founded in 2012 with support of the German social company BONERGIE. Bonergie is selling Sun Tranfer products (see also http://www.bonergie.com/english/produkte.html).
  • Objectifs SARL which is selling Sun King products of the US company greenlight planet


Policy Framework, Laws and Regulations

In order to tackle the challenges in the energy sector the government of Benin has formulated the Policy and Strategy Document for the Development of the Electricity Sector that provides the long term vision and the strategy of the country by 2025.

The overall energy strategy can be summarised as follows:

  • strengthening the legal and institutional framework;
  • ensuring reliable electricity supply to support economic activities and achieve the national energy security and an efficient energy delivery system with an optimal energy resource mix;
  • increasing energy access to population through new power generation plants, regional interconnection and rural electrification;
  • promoting private investments in the power sector by creating the enabling market environment for private sector participation
  • promoting energy efficiency in all sector.

Regarding rural electrification, it aims at providing 150 villages p.a. with access to electricity in order to achieve a rural electrification rate of 30–40 % by 2015. Furthermore, promoting the dissemination of improved stoves and other renewable domestic energy sources are additional objectives of the strategy to tackle the energy challenges in rural areas.

In the run of the energy sector reform, which gained considerable momentum in recent months (mainly due to growing World Bank interest in the sector), the establishment of a Rural Electrification Fund is being discussed. It shall incorporate a concession model with minimum subsidy bidding. The Fund is intended to bundle investments of donor agencies designated to rural electrification. Rural regions covered by the SBEE grid will also be concessioned(15 concessions in total). However, basic features of this instrument are yet unclear such as regulation, payment authorisation and tariffing. Experiences in Senegal and Mali, furthermore, expose a very limited interest of private enterprises to compete for such funds. Concerning the national and even regional private sector, the mobilisation of financial resources is less an impediment than lacking capacities to implement privately run electricity concessions in Benin.

The reform process goes along with a shift in responsibilities for rural electrification from SBEE to ABERME. It is, furthermore, planned to split up SBEE into an asset management and a distribution management company.

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Internationally funded projects

The French Agency for Development (AFD) is preparing a project to support the restructuration and extension of the grid in the region Abomey-Calavi and the Atlantic Department. The project is cofounded by the EU and the European Investment Bank.

The African Development Bank (AfDB) finances a project to restructure and reinforce power generation and electricity distribution of the utility SBEE in Cotonou, Porto Novo, Parakou, Bohicon, and Lokossa

The World Bank is implementing the following projects:
The “Increased Access to Modern Energy” supported by several banks including the KfW is intended to increase the number of customers connected to the grid. The project is comprised of four components: (A) Electrical Network Upgrading, (B) Electrification and Modern Energy Services, (C) Sustainable Energy Services and (D) Project Preparation.
Component A supports the upgrading of the existing transmission and distribution grid. The planned activities include the construction of two transmission lines, rehabilitation of distribution networks in key urban centers, installation of prepaid meters and measures to enhance lighting and appliance efficiency to help reduce peak load and energy consumption.
Component B supports the provision of modern energy services in rural areas. Component C supports the provision of technical assistance to improve the financial autonomy and performance of key sector institutions and enhance the capacity to better plan and regulate Benin's energy sector. Component D aims at supporting planning of new projects such as the hydropower project in Adjarala.
The World Bank also supports the construction of the barrage for the hydropower plant in Adjarala. The project is co-financed by AfDB.
In addition the World Bank with funding from KfW and European Investment Bank executes a project to strengthen power transmission between Togo and Benin.

BMZ finances activities of GIZ to strengthen the capacity of the West African Power Pool. In addition BMZ provides funds for KfW to rehabilitate the hydropower plant in Nangbeto. KfW is also financing the transmission line between Sakété and Porto Novo.

On behalf of six donors, the Energising Development Program (EnDev) executed by GIZ is supporting grid extension, grid densification, picoPV system and dissemination of improved stoves

The European Union is supporting the « Centre d'Information et de Contrôle (CIC) » of the West African Power Pool.

Energy Planning

With the help of the the Open Source Spatial Electrification Tool (OnSSET) 21 electrification pathways were examined for Benin in 2018. The tool leverages geo-spatial information and uses a least-cost approach to identify the most cost effective electrification solution in each settlement. Results show that 58-92% of the population in 2030 is expected to receive electricity from the grid. The remaining 8-42% is expected to gain electricity access through mini-grids or stand-alone systems. The total investment cost required to achieve universal electrification in Benin by 2030, ranges from 1.2 to 5.9 billion USD, depending on the level of service provided and technology cost developments.[4]


Further Information


References

  1. ↑ Power Africa. (2018). Benin Factsheet. Retrieved from: https://www.usaid.gov/sites/default/files/documents/1860/Benin_-_November_2018_Country_Fact_Sheet.pdf
  2. ↑ http://aiser-benin.org/lassociation/qui-sommes-nous/
  3. ↑ http://levenementprecis.com/2011/10/31/creation-de-l%E2%80%99association-interprofessionnelle-de-specialistes-des-energies-renouvelables-au-beninl%E2%80%99aiser-pour-aider-le-gouvernement-dans-le-developpement-des-energies-renouvelables/
  4. ↑ ELECTRIFICATION PATHWAYS FOR BENINA spatial electrification analysis based on the Open Source Spatial Electrification Tool (OnSSET). 2018. http://www.onsset.org/uploads/1/8/5/0/18504136/electrification_pathways_for_benin.pdf


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