By: Mohamed M. Sesay
In the ongoing joint delocalized committing meeting in Freetown Sierra Leone, the Economic Community of West Africa States (ECOWAS), is currently developing roadmaps in order to enhance a sustainable, renewable and greener energy supply across the region. The theme for the delocalized joint meeting “Building the Regional Energy Market for a Just Energy Transition”, has been very apt, timely and commendable by all members of the ECOWAS Parliament.
It has been ascertained that the theme for the aforementioned energy project for West Africa Countries, was not chosen in isolation as Goal 7 of the UN-SDGs, equally pinpoints the significance of ensuring access to clean and affordable Energy. It is crystal clear that sustainable energy supply is a key driver towards the development of agriculture, business, communications, education, healthcare, and transportation.
It is also evident that access to Energy helps economic and human development for any nation.
In terms of funding for energy infrastructure as well as the technical assistance to build the capacity of power sector institutions as presented by joint committee leaders, the MCC is empowering partner countries to create and drive their own economic growth and poverty reduction. There has been similar assistance from world bank, the AfDB, the EIB, the KFW in terms of loans and Grants coupled with technical Assistance but there are still multiple challenges within the energy sector across all member states.
The West Africa Electricity Project championed by the ECOWAS Parliament has a colossal potential to attract huge investment promotion and stakeholders’ protection in the ECOWAS regional electricity market. There is no modicum of doubt that West Africa is endowed with enormous energy resources, however, the resources are unevenly distributed, and located far from those without access.
There is an estimated figure of 163 million people living without access to electricity in the sub-region. Nigeria alone constitutes about 60 million of the people without access to electricity. It is sad to note that access to electricity is overly concentrated in the urban centres. Only Ghana, Cape Verde, and Cote d’Ivoire within ECOWAS region that have achieved over 50 percent rural access to electricity supply.
As part of the remedial moves to achieve sustainable energy supply across the region, the ECOWAS Energy Protocol (2003) and the establishment of regional regulatory institutions including the West Africa Power Pool seek to: Increase electricity access in the sub-region; Guarantee stable and affordable energy
Integrate the power markets of member states; Harness and create an investment framework towards the utilization of energy resources.
The regional electricity market has not worked effectively because; Utility companies are not financially viable; Weak transmission and distribution infrastructure; Lack of comprehensive power planning, procurement, and contracting; Inadequate investment and finance; High technical and commercial inefficiencies; non-enforcement of regional regulatory measures and lack of political will.
The key factors for investment promotion in the regional electricity market are not unconnected to; A stable political and macro-economic environment; Comprehensive power sector planning, transparent and competitive procurement, and robust contracting; Creditworthy off-taker; Financially viable utilities; A fair and transparent regulatory system, and an independent regulator and improved transmission and distribution infrastructure.