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Senegal Energy Situation
Energy situation especially in rural areas
Energy demand and supply in the household sector
The Senegalese energy sector is relatively small. The total final energy consumption in 2006 was about 2,3 Million TOE or 0.2 TOE per habitant, half of the all-africa average (0.45 TOE). The sector is dominated by the use of biomass (45 % of end energy-use) and oil products (44 %). Electricity and coal account only for 7 % and 4 % respectively. The household sector is responsible for 54% of the total energy consumption. Within this sector firewood (58 %) and charcoal (26 %) are by far the most important uses of energy, followed by LPG (11 %), Electricity (4 %) and lampoil (1 %)
The figure on the right shows the development of the energy consumption in the sectors household, transport and industry.
A big part of urban house-holds still cooks with wood and charcoal. The use of biomass is one of the key factors responsible for the depletion of the country's forest stocks. In the medium term deforestation will create bottle-necks in the supply of cooking energy, particularly for the poorest households.
Demand for charcoal derived from Senegalese forests is also likely to increase since there will be a phase-out of subsidies for butane gas in reaction to pressure from the West African Monetary Union, most likely prompting poorer households to return to their traditional fuel usage patterns. These traditional ways of cooking are generally characterised by very poor efficiency.
Some key figures:
- 40,000 ha of forest are lost every year (to chopping for firewood, forest fires, desertification)
- the price of traditional fuels (firewood, charcoal) has more than doubled in the last 10 years
- an estimated 5,400 people annually die from diseases caused by indoor air pollution
- 45 % of Senegal’s primary energy demand are covered by firewood (31 % directly as firewood and 14 % as charcoal)
The Senegalese government has recently published several policy orientations, thus beginning to address these extremely urgent issues.
Electricity
Since the year 2000 the electricity production is increasing annually by 7.2 % and was about 2400 GWh in 2006. Thereof 3,6 GWh are produced decentralized with PV application. In 2006 the households consumed 1438 GWh or 144 kWh per person.
On the other hand, in 2008 only about 17 % of rural households have access to electricity. Recently, the government set the target of rural electrification to 50 % coverage by 2012. The goal seems very ambitious and explains the high ranking of rural electrification on the political agenda.
Institutional set up and actors in the energy sector
Public institutions
In 1997 Senegal began a reorganisation of its electricity sector following recommendations by the World Bank. It was decided to privatise the public utility SENELEC, to found the "Agence Sénégalaise d’Electrification Rurale" (ASER – Senegalese Authority for Rural Electrification) and to put in place the "Commission de Régulation du Secteur de l’Electricité" (CRSE – Regulation Commission for the power sector).
The Ministry of Energy and Biofuels (Ministère de l’Energie et des biocarburants) as the lead agency is in charge of formulating, coordinating, and setting overall objectives, policies, strategies, and general directives for the entire energy sector. Furthermore it is authorized to issue directives to SENELEC. ASER was charged with the task of rural electrification as well as the implementation of the concessions and the ERIL, while the urban electricity supply remained within the responsibility of SENELEC.
It was decided to divide the whole of Senegal into concession zones (12 concessions remain after a consolidation). International donors and the Senegalese government provide large amounts of money to supply the concessionaires with sufficient funds for their rural electrification activities. The donors involved are the World Bank, the German development bank KfW (1 concession) and the African Development Fund. The government provides up to 70 % of funds required for investment and engineering. The concessionaire is charged with 20 % and the users with 10 %. End users will be charged with cost covering tariffs. All donors have dedicated a share of their funds (ca. 15 %) for the installation of renewable energy systems.
The first concession was awarded in 2008. Within the concessions municipalities can apply for ERIL loans (Electrification Rurale d’Initiative Locale – rural electrification through local initiatives) to imple-ment electrification projects themselves. In ERILs, the same rules apply for subsidies as in the concessions (70 %/ 20 %/ 10 %). For all ERILs an application has to be prepared and submitted. Then, ASER and the respective concessionaire have to approve the project.
Electricity generation, transmission and distribution
'Power 'Generation: Senegal’s total installed capacity is 634.9 MW, but in 2008 only 548.8 MW were used. Of these 512.1 MW are connected to the national grid. SENELEC owns power stations with nearly 60 % of the total production capacity while 218.3 MW are privatly owned by GTI-Dakar and ESKOM-Manantali.
The biggest part are 'generated' by diesel plants, but there are also gas-, steam- and gas-steam power plants. Senegal uses 60 MW of the 200 MW Manantali hydroelectric power plant at the border with Mali. For idependent power producers (IPP) it´s hard to enter the business of power generation because of the
Transmission: There are two grid-systems: the national grid at 90kV (327.5 km) and the supranational grid at 225 kV (945 km). Both are operated by SENELEC.
Distribution: All distribution activities are carried out by SENELEC.
Non governmental service providers for rural areas in the field of energy
Projects implementing NGOs:
Commercial service provider:
During the 1990s, Senegalese companies sold about 2,000 PV systems per year, but the reorganisation of the electricity sector had a negative impact of the nascent Senegalese market for solar energy systems. Only 7 out of 18 solar companies survived the reform. However, 6 new companies have entered the market since 1998, raising the number of solar energy providers to 13. The companies are mainly involved in installation and service for donor-funded systems while the market for unsubsidised systems is very small.
Micro Finance Institutions:
