TENTH AFRICAN OIL & GASTENTH AFRICAN OIL & GASTRADE AND FINANCE CONFERENCETRADE AND FINANCE CONFERENCE

El Aurassi Hotel, AlgiersEl Aurassi Hotel, Algiers

2-5 April 20062-5 April 2006

Regional Energy IntegrationRegional Energy Integration in Africa – An Input from WECin Africa – An Input from WEC

ByBy

Michel Claude LOKOLOMichel Claude LOKOLO

Ministry of Energy - Ministry of Energy - CAMEROONCAMEROON

NOT AN OFFICIAL UNCTAD RECORD

About WECAbout WEC

WEC - World Energy CouncilWEC - World Energy Council

• Multi-energy organisation;Multi-energy organisation;• Founded in 1923; Headquarter = Founded in 1923; Headquarter =

London;London;

• Mission - “promote sustainable supply Mission - “promote sustainable supply and use of energy for the greatest and use of energy for the greatest benefit of all”;benefit of all”;

• Members = national committees;Members = national committees;• 96 member country committees;96 member country committees;• 22 Committees in Africa;22 Committees in Africa;• <www.worldenergy.org><www.worldenergy.org>

Africa’s Energy PovertyAfrica’s Energy Poverty

Africa’s Energy PovertyAfrica’s Energy Poverty

• 60-80% total energy consumed is traditional biomass;

• Africa consumes 3% of the world’s modern energy;

• Low per capita total primary energy supply, biomass included

World 1640 koe/capAfrica 630

• more than 90% of Africans do not have access to electricity

• Low per capita electricity consumptionWorld 2326 kWh/capAfrica 515

The Long Way From LagosThe Long Way From Lagos

• 25 years ago, another oil price increase, 25 years ago, another oil price increase, which became the second oil crisis, has which became the second oil crisis, has urged generous thoughts to African urged generous thoughts to African Leaders.Leaders.

• Access to energy should not became an Access to energy should not became an obstacle to socio-economic advancement obstacle to socio-economic advancement of their continentof their continent. . 

• African countries should find ways to share African countries should find ways to share their energy resources.their energy resources.

The Long Way From LagosThe Long Way From Lagos

• So was envisioned “Energy cooperation So was envisioned “Energy cooperation within African countries” in a famous within African countries” in a famous declaration known as the “Lagos Action declaration known as the “Lagos Action Plan” (1980).Plan” (1980).

• Various contributions have been deployed Various contributions have been deployed in that respect at various levels to support in that respect at various levels to support and bring these thoughts into existence:and bring these thoughts into existence:

  • UNDP, World Bank, Other UN bodies, Sub-UNDP, World Bank, Other UN bodies, Sub-

Regional Economic Commissions, AfDB Regional Economic Commissions, AfDB (African Development Bank), WEC (world (African Development Bank), WEC (world energy council), NEPAD (New Parternship energy council), NEPAD (New Parternship for African Development).for African Development).

WEC’s ContributionWEC’s Contribution

WEC in its regional programme in Africa WEC in its regional programme in Africa has pushed further the work initiated has pushed further the work initiated by the AfDB - In two phases.by the AfDB - In two phases.

  

Phase OnePhase One of WEC’s study has shown of WEC’s study has shown that:that:

• Energy cooperation in Africa is building Energy cooperation in Africa is building up;up;

• It grows no matter the various It grows no matter the various obstacles;obstacles;

• It needs to be enhanced.It needs to be enhanced.

WEC’s ContributionWEC’s Contribution

Phase TwoPhase Two has tried to harness the has tried to harness the lessons from some “successful lessons from some “successful stories” stories”

• that could serve as reference that could serve as reference knowledge in other energy knowledge in other energy cooperation projects and,cooperation projects and,

• that could specifically serve in the that could specifically serve in the development of some of the projects development of some of the projects identified in the identified in the NEPAD Short Term NEPAD Short Term Action Plan (STAP)Action Plan (STAP)..

WEC’s ContributionWEC’s Contribution

Phase TwoPhase Two has focused on some of the has focused on some of the issues that have appeared of great issues that have appeared of great importance for Africa:importance for Africa:

  • Hydropower;Hydropower;

• Natural gas;Natural gas;

• Assessment of African experience in Assessment of African experience in regional electricity interconnection;regional electricity interconnection;

• Assessment of African experience in Assessment of African experience in cross-border gas projects.cross-border gas projects.

WEC’s ContributionWEC’s Contribution

Hydropower developmentHydropower development

And specifically “big hydro” and dams And specifically “big hydro” and dams construction have become a contentious construction have become a contentious subject in the international debate subject in the international debate related to the social and environmental related to the social and environmental impacts of dams.impacts of dams.

  Hydropower is an energy resource that is Hydropower is an energy resource that is

available in Africa and that can be available in Africa and that can be adequately developed with due adequately developed with due consideration to these social and consideration to these social and environmental impacts.environmental impacts.

WEC’s ContributionWEC’s Contribution

Hydropower developmentHydropower development

Nelson Mandela about this controversy Nelson Mandela about this controversy on dams (2000):on dams (2000):

““The problem is not the dams. It is the The problem is not the dams. It is the hunger. It is the thirst. It is the hunger. It is the thirst. It is the darkness of a township. It is the darkness of a township. It is the rural huts without running water, rural huts without running water, light or sanitation”.light or sanitation”.

WEC’s ContributionWEC’s Contribution

Natural gas developmentNatural gas development

Can play a significant role for the Can play a significant role for the betterment of the continent’s energy betterment of the continent’s energy situation:situation:

Some of it has been and is still being Some of it has been and is still being flared in some countries;flared in some countries;

Its development and use will be a Its development and use will be a positive step vis-à-vis the climate positive step vis-à-vis the climate change global issue.change global issue.

WEC’s ContributionWEC’s Contribution

Natural gas developmentNatural gas development

Its development and use depends on Its development and use depends on market development in Africa and market development in Africa and beyond.beyond.

Some interesting projects to come:Some interesting projects to come:• WAGP (Nigeria-Ghana and beyond)WAGP (Nigeria-Ghana and beyond)• NIGAL - Trans Saharan gas pipeline NIGAL - Trans Saharan gas pipeline

(from Nigeria to Algeria and (from Nigeria to Algeria and beyond).beyond).

TransMed Gas PipelineTransMed Gas Pipeline

WEC’s ContributionWEC’s Contribution

Regional electricity Regional electricity interconnectioninterconnection

Some lessons from the SAPP Some lessons from the SAPP (Southern Africa Power Pool) (Southern Africa Power Pool) can be useful to some identified can be useful to some identified projects in the NEPAD S.T.A.P.projects in the NEPAD S.T.A.P.

WEC’s ContributionWEC’s Contribution

Cross-border gas projectsCross-border gas projects

Some lessons from the Transmed Some lessons from the Transmed

(Algeria - Tunisia - Italy gas (Algeria - Tunisia - Italy gas pipeline)pipeline)

could be useful to the WAGP.could be useful to the WAGP.

WEC’s ContributionWEC’s Contribution

• 11stst Report (Phase I) Report (Phase I)““The Potential for Integrated Energy The Potential for Integrated Energy

Development in Africa - a Discussion Development in Africa - a Discussion Document”; Document”; (December 2003). (December 2003).

• 2nd Report (Phase II)2nd Report (Phase II)““Regional Energy Integration in Africa”;Regional Energy Integration in Africa”; (September 2005).(September 2005).

• WEC can contribute to support the efforts WEC can contribute to support the efforts aiming the reduction of energy poverty in aiming the reduction of energy poverty in Africa.Africa.

THENTH AFRICAN OIL & GASTHENTH AFRICAN OIL & GASTRADE AND FINANCE CONFERENCETRADE AND FINANCE CONFERENCE

Thank You!!Thank You!!