SENEGAL Global Applications Program

Country Report

Haley McIntyre December 15, 2013

ACEP

Introduction

Agenda 1. General Overview

2. Energy Sector 3. Institutional Framework

4. Findings

GENERAL OVERVIEW

Geography

• Area: 197,000 mi^2 • 11 Provinces

• Capital: Dakar

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Population • Population: 13.3 million • Growth Rate: 2.5% • 53% under 20 years old • Urban: 45% • Language: French • Religion:

• 94% Muslim • 5% Christian • 1% Other

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Vegetation

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Socio-Political Factors • Independence from France 1960 • “Democratic leader in West Africa” – U.S. State

Department • President: Macky Sall 4/2/12 – present • 2010 Gender Parity Law – requires half of parties

candidates to be women • Women hold 43% seats in National Assembly

• Senegal ranks 140th out of 155 countries on UNDP Gender Development Measure

• Ranks 154th out of 186 countries on the 2012 U.N. Human Development Index

Casamance

• Separatists movement active since 1982 – 5,000 killed

• Government and rebels signed peace accord in 2004. However, Casamance Movement of Democratic Forces continues to fight (MFDC)

• Land mines in area make agriculture difficult

• May 2013 12 de-mining volunteers taken hostage

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ECOWAS Regional Relationships Gambia (Center)

Independence Portugal 1965 Two nations of the same people

Senegambia Senegal-Gambia Permanent Secretariat

Yahya Janneh coup in 1994 Casamance MFDC

Guinea-Bissau (South) Independence from Portugal 1974

Boarder disputes from colonial times 1998 Civil War: Related to disagreement

over Senegal’s Casamance 2012 Military coup d'état

Mauritania (North) Boarder conflict 1989

Fossil Valley Rehab Project Senegal River

47% employed in agriculture, 1% arable land

Mali (West) Positive relations

Guinea (South-East) Senegal former President Wade

backed 2008 coup

Economy Services: • Re-export activities, transport,

telemarketing, tourism

Agriculture products: • peanuts, millet, corn, sorghum,

rice, cotton, tomatoes, green vegetables; cattle, poultry, pigs; fish

Industries: • agricultural and fish processing,

phosphate mining, fertilizer production, petroleum refining; iron ore, zircon, and gold mining

Agriculture 15%

Industry 23%

Services 62%

2012 GDP By Sector

Source: CIA World Fact Book

Economy and Employment

• Unemployment rate:

• 48% (2007 est.)

• GDP – real growth rate • 3.5% (2012 est.) • 2.6% (2011 est.) • 4.3% (2010 est.)

• GDP - per capita:

• $2,100 (2012 est.) Agricultu

re 77%

Industry and

Services 23%

2007 Employment By Sector

Source: CIA World Fact Book

ENERGY SECTOR

Energy Use • 2011 Total Primary Energy Supply (TPES) 2,858 GWh

1 Petajoule = 277.8 GWh Source: IRENA, 2012

Energy Use

1 Petajoule = 277.8 GWh Source: IRENA 2012

Energy Demand Profile

52%

30%

14%

4%

2012 Energy Use by Sector

Households

Transportation

Industrial Sector

Agriculture & Public Services

Source: IRENA 2012

Electric Generation

• SENELEC national utility has monopoly for national grid transmission and distribution

• 60% of total production • GTI-Dakar, ESKOM-

Manantali, and IPPs produce 218 MW

• SENELEC presentation: “Deficit of generation fulfilled by 150 MW Diesel power plant rental at an annual cost of 106,8 billions CFA Francs (217 Millions USD)”

49%

39%

10% 2%

2012 Electric Generation by Fuel Fuel Oil Diesel Hydro Gas

Source: Maristes, 2012

Cost of Electricity

Cost of Importing Oil • All fossil fuels consumed in

country are imported

• Energy Self-sufficiency • 55%

• Not counting biomass, over

90% foreign dependence

• Fuel Imports • $1.2 Billion USD • 23.2% of all imports

• 35% of its foreign exchange

earnings used for oil imports

National Electric Grid

Source: IRENA 2012

Rural Electrification Concessions • The rural regions of Senegal that have yet to be electrified are

divided into 10 concession regions • Competitive bidding process • Each bidder develops an electrification plan and indicates

percentage of funding to provide (minimum 20%), remainder from the State

• Must electrify at least 50% of rural population in concession • Exclusive if choose grid extension • Output based subsidy • Minimum of 10% Renewables required for subsidy addition • Creation of a big market: 5,000 to 25,000 clients • 25 year period • Tariffs vary by region • Technology neutral

Rural Concessions Map

Source: Fall Sar, 2012

Rural Concessions Results

Source: Fall Sarr, 2012

Rural Community Sizes • Rural population accounts for 59% of total population • Approximately13,212 villages • 75% of villages have less than 500 inhabitants (2005)

Electricity Demand in Rural Regions

Source: Camblong 2009

Supply of Resources

Source: IRENA 2012

Solar Potential

http://solargis.info/doc/_pics/freemaps/1000px/ghi/SolarGIS-Solar-map-Senegal-and-Gambia-en.png

Wind Potential

2005 Northern Coast Wind Analysis

• Potential along Northern Coast • 158 kWh/m^2 extracted

annually • Most suitable use small scale water

pumping stations • Windy season coincides with

dry season

Source: Youm et al., 2005

Taiba N’Diaye Wind Farm • Project Development began

2006 • Developer: Sarreole • 153.75 MW • 75 km Dakar • 2 sites – 3 km apart

• Site 1: 20 turbines 61.5 MW • Site 2: 30 turbines 92.25

MW

• SENELEC grid connected • May 2011 approved sale of

carbon credits • May 2013 still negotiating PPA

• “First in Senegal and largest (by capacity) in West Africa”

Hydro Resources Senegal River Gambia River

http://www.sy-gabber.nl/gabber/verhalen/waypointstracks/main_waypointstracksENG.htm

Hydropower Development

• Diama Dam: • Constructed 1986 • 40 km upstream Saint Louis • Prevent encroachment of

salt water on irrigation • Manatali Dam

• Completed in 1988 without hydropower plant

• Began power production 2001

• Produce 740 GWh per year • Highly controversial

• SRB Multipurpose Water Resource Development Project

• World Bank report Sep 2013 • Dam feasibility studies

International Rivers

http://documents.worldbank.org/curated/en/2013/09/18405843/africa-senegal-river-basin-multi-purpose-water-resources-development-project

INSTITUTIONAL FRAMEWORK

Energy Policies • In 1997, Senegal passed the “Lettre de Developement du

Secteur de l’Energie (LPDSE), in order to facilitate more private partnership with its electricity sector

• LPSDE broke the nationwide monopoly of SENELEC (Société Nationale d’Electricité du Sénégal), allowing private producers to generate and distribute electricity in rural areas not served by the national utility

• Created two new agencies CRSE and ASER • Updated LPDSE 2003 LPSDE 2007

• Currently negotiating National Strategy for Renewable Energy to set a target of 20% renewables in electricity mix by 2020.

Targets and Goals • Senegalese Rural Electrification Action

Plan (PASER) • 8% Electricity access to rural

households in 2000 • 50% Rural electrification target for

2012 • 62% Rural electrification target by

2022

• Programme 2013-17 (update to LPDSE) Goals: • Natural gas rise to 25-35%

• 150 MW gas plant • May 2013 announce deal to Import LNG from U.S.

• 25% targeted for coal • 250 MW coal plant to be built by KEPCO

• A combined goal of 15% for renewable energy and biofuel has been set for 2020 Source: PERACOD, 2011

Regulatory • The Regulatory Commission for the Electricity Sector (CRSE)

• Independent regulating authority • Promote competition, efficiency, and economy in bulk power

markets (IRENA, 2012) • Set maximum tariffs • Rural concessions

• “One major issue that emerged is that the regulator (CRSE) is currently obliged to approve tariffs for electricity supply to the final consumer, regardless of the size of the installation. This process is time-consuming and acts as a barrier to the implementation of small concessions” (IRENA, 2012).

Stakeholders • Ministry of Renewable Energy (MER) MER is responsible for framing

policies for the promotion of electricity generation from renewable energy sources

• Senegalese Agency for Rural Electrification (ASER) ASER is responsible for Senegal's off-grid rural electrification and power generation. Fully operational in 2005, ASER has been given the responsibility of implementing the strategy for rural electrification (PASER).

Source: PERACOD, 2011

Stakeholders • The Public-Private Infrastructure Advisory Facility (PPIAF) has provided

technical assistance to the government of Senegal since 2000 in support of its objectives to foster the effective development of private sector participation in infrastructure

• National Agency for Solar Energy (ANDES) is a new agency set up by Senegal in response to the 2010 mandate it received from the heads of states of ECOWAS countries to promote solar energy in the sub-region.

• University Cheikh Anta Diop de Dakar Houses the Research and Study Centre for Renewable Energy (CERER), a leading research institute in Senegal.

• Inter-sectorial Committee for the Implantation of Synergies between Energy and other Strategic Sectors (CIMES) CIMES is a multi-sectorial group comprising, among others, the relevant ministries, civil society, private sector and donors. The group worked towards including energy issues within the National Poverty Reduction Strategy

Domestic Programs and Initiatives • Programme for the Promotion of Rural Electrification and

Sustainable Supply of Domestic Fuels (PERCOD): The focus of PERCOD is to contribute to access of renewable energy, particularly solar systems and the sustainable use of non-fossil fuels

• Rural Electrification Senegal Project (ERSEN): 265 target villages with populations less than 1000, long distance from grid, must have at least one school and one clinic

Finance • In Senegal, investment and finances in the energy sector largely rely on

funding from multi and bi lateral banks or donors, but rarely from the private sector

• Local banks reluctant to invest in energy due to risk perception

• CMS and SenFinance are local micro-banks seeking to fund income generating activities

• Rural Electrification Fund (REF): Through the REF, ASER supports

investments by granting subsidies to operators, financing credit lines and guaranteeing funds to banks, micro-finance institutions and other program partners (IRENA, 2012)

• Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ)

• Micro-Power Economy Model

http://www.inensus.de/download/MicroPowerEconomy.pdf

FINDINGS

Conclusions 1. “Since 2003, the focus of Senegal's energy policy has been on the

contribution that the energy sector can make to provision of basic ‘social’ services, implying education, health and water” (Diop, 2009).

2. Rural electrification looking for low wattage (1-5kW) “Micro-grid” systems 1. Module 2. Incremental infrastructure: scaled-up as demand grows and

investment capital available 3. Semi-Automated 4. Pre-paid aggregated metering – purchase of small amounts at

irregular intervals 3. Electrification depends on government planning and therefore has a

lengthy and complex start-up process: high transaction costs relative to project size

4. Demand and ability to pay for: improved cook stoves, solar rechargeable lanterns and cell phone charging stations

Thank You

Source: http://web.worldbank.org/