ENERGY MIX IN SENEGAL WHICH ONE TO CHOOSE?. General Directorate. APUA CONGRESS. LUANDA 2014 Safiétou DIALLO Technical Adviser. CONTENT. INTRODUCTION/OPENING TO THE PRIVATE SECTOR ASSESSMENT: 1 st FIRST GENERATION OF IPP-GTI AND KOUNOUNE GAS PRICE RISE: 2 ND GENERATION OF IPP GTI
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APUA CONGRESS. LUANDA 2014
The Energy Sector is a major support to economic development. and to social and regional inequalities reduction.
The Emergence Strategy reflects the ambition of Senegal to ensure broad and reliable access to cheap energy. Thus. the ESP has the following objectives:
(~ 60-80 CFAF/kWh) to support economic competitiveness;
According to the 2013-2017 PPDPS reviving the integrated plan of the power
sub-sector also goes through:
- legal and tax incentives
- other measures
I- FIRST GENERATION OF IPP-GTI AND KOUNOUNE
Main shareholder: GE
Main shareholder: MATELEC
II – SECOND GENERATION OF IPP FOLLOWING RISE IN FUEL PRICE IN 2006
MIX FROM BILATERAL CO-OPERATION
Power Distribution Network (2017)
Production of natural gas from the
Banda deposit (Mauritania)
Importation of 20 MW HFO-fueled power from Mauritania from October 1st. 2014. and of 20 MW HFO-fueled power in 2016
MIX FROM LOCAL PRODUCTION OF NATURAL GAS
Production of Natural Gas between 1987 and 2014
SUB REGIONAL HYDROPOWER PROJECTS
Beside renewable energies. priority should be given to lower cost hydropowerprojects
SOUTH-TO-SOUTH REGIONAL INTERCONNECTION PROJECTS : WAPP
Challenges to be faced by IPPs
1- risk of additional cost and timeout: deadlines for implementation: contracting phase and development &building phase – timeframe: 36 months
2- financial risk on the actual cost of IPPs: guarantees. land and tax incentives offered by the STATE. and environmental requirements may result in additional costs
3- delays induced by the tender procedures and regulation of IPPs: risk on administrative procedures.
Total operating expenses decrease from 92.2 to 83.03 CFAF/kWh over 2013-2023.
7 REASONS FOR INVESTING
1 A stable and open country
2 Sub-regional integration WAEMU-WAPP
3 Modern infrastructure
4 A geographical location: privileged access to regional and international markets
5 Quality human resources
6 Legal and fiscal incentives
7 Sound and competitive economy
Senegal has remained open to foreign private investors since the past 10 years.
The issue of energy is central to Government’s development and growth strategy
Energy mix is a Government instrument to offer adequate and reliable energy at the lowest cost.
The strategic objective of the mix is to lower the price of electricity in Senegal.
THE QUESTION IS TO KNOW which energy mix options allow us to achieve a lower energy cost and to attract investors in our sector…