East Africa Power Pool Presentation

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EASTERN AFRICA POWEREASTERN AFRICA POWERPOOLPOOL

EAPPEAPPPresentation toPresentation to

COMESACOMESA--EACEAC--SADCSADC

Lusaka,ZambiaLusaka,Zambia

April 6April 6--7,20097,2009


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ContentsContents

11-- IntroductionIntroduction22-- Major activitiesMajor activities

33-- onon--going projectgoing project44-- Challenges.Challenges.

55--

ConclusionConclusion


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1.1. Introduct ionIntroduct ion


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Introduct ionIntroduct ion

EAPP established in Feb 24 ,2005 inEAPP established in Feb 24 ,2005 inAddis Ababa,Ethiopia by the countriesAddis Ababa,Ethiopia by the countries

of the Eastern Africa Region under theof the Eastern Africa Region under the

intergovernmental and interutilitiesintergovernmental and interutilitiesMoUMoUs.s.

It is also a specialised institution ofIt is also a specialised institution ofCOMESA for power.COMESA for power.


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EAPP Member Count r iesEAPP Member Count r ies

Burundi,

DRC,Egypt,

Ethiopia,

Kenya,Rwanda,Sudan


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EAPP Member Ut il i t iesEAPP Member Ut il it ies

REGIDESO of Burundi,

SNEL of DR Congo,EEHC of Egypt,EEPCO of Ethiopia,

KenGen and KPLC of Kenya,ELECTROGAZ of Rwanda,

NEC of Sudan and SINELAC of DR Congo-Rwanda-

Burundi.


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EAPP Objectives:EAPP Objectives:

Secure power supply for the RegionSecure power supply for the Regionss

countriescountries

Facilitate in the long term development ofFacilitate in the long term development of

electricity market in the regionelectricity market in the region


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Optimize the usage of energyOptimize the usage of energyresources available in the Region byresources available in the Region by

working out regional investmentworking out regional investment

schemes in Power generation,schemes in Power generation,transmission and distribution takingtransmission and distribution taking

into account the sociointo account the socio--economic andeconomic andenvironmental aspectsenvironmental aspects


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Increase power supply in the region inIncrease power supply in the region inorder to increase the access rate oforder to increase the access rate of

the population to electricitythe population to electricity

Reduce electricity cost in the RegionReduce electricity cost in the Region

by using power system interconnectionby using power system interconnection

and increasing power exchangesand increasing power exchangesamong countriesamong countries


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Provide efficient coProvide efficient co--ordinationordinationbetween various initiatives taken inbetween various initiatives taken in

the fields of power production,the fields of power production,

transmission as well as exchanges intransmission as well as exchanges inthe Regionthe Region


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Create, in the framework of NEPAD, aCreate, in the framework of NEPAD, aconducive environment forconducive environment for

investments, in order to facilitateinvestments, in order to facilitate

financing of integration projects in thefinancing of integration projects in thefields of power generation andfields of power generation and

transmission in the Regiontransmission in the Region


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2.2. MAJOR ACTI VI TI ESMAJOR ACTI VI TI ES


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Maj or act ivit iesMaj or act ivit iesEC Proj ectEC Proj ect

European Commission FinancingEuropean Commission Financing(2.7 Mil Eur )(2.7 Mil Eur )

Overall objective

To strengthen the capability of the EAPPPermanent Secretariat to contribute in theimprovement of the integration of theelectricity markets of the region with a view

to creating a regional electricity market.


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Project componentsProject components

a.Preparation of the Eastern Africa Power

Market Developmentb. Preparation of a strategic plan and

business plan

c. Power market rules and agreements forcross-border trade


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Project components:d) Horizontal activities

A regional database on power systems Twinning (coaching) arrangement with

advanced power pools

Training Study tourStakeholders meetings


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Regional Power Market DevelopmentRegional Power Market Development

Analysis of the current power sector

situation and Implementing database

Review of the existing studies aboutEastern Africa Power Development.

Assessment of power market futuredevelopment, based on available studies


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Preparation of a strategic plan and abusiness plan

Analysis of the current context of activities in

Eastern African Power Sector, including legal,regulatory and institutional aspects, the tariffpolicies and EAPP organization;

setting up strategic objectives of the EAPPorganization and a roadmap towards achievingthe set objectives;


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Preparing the action plan, and means tomonitor the performance of systemoperations and the orientations for the

establishment of a Coordination Centre Preparing a 3-year business plan whereactions are described in detail and financial

needs and resources are identified andquantified.


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Maj or act ivit iesMaj or act ivit ies

EC Proj ectEC Proj ect

Power market rules and agreementsfor cross-border trade: Preparation

- market rules (licensing, guidelines for tariff

setting- Standard power purchasing agreement- Standard agreement on power balancing

- proposal for cost-based tariff-setting- proposal related the legal/regulatory

framework -Treaty related to regional electricity trade


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The Consultant has prepared draftThe Consultant has prepared draftInception Report which has beenInception Report which has been

discussed by the Steering Committeediscussed by the Steering Committee

in March 2009in March 2009

The project is scheduled to beThe project is scheduled to be

completed by 2012completed by 2012


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Maj or act ivit iesMaj or act ivit iesAfDB Proj ectAfDB Proj ect

AfDB Financing ( 1 Mil US$)AfDB Financing ( 1 Mil US$)- Drafting EAPP regional power systemmaster plan

- Drafting of electricity grid code for EAPP- Training on (project management , public-Private Partnership, power sectorregulation)- Implementation of Information system


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Maj or act ivit iesMaj or act ivit iesAfDB Proj ectAfDB Proj ect

We are in the process of evaluatingWe are in the process of evaluatingproposals .proposals .

The project is planned to beThe project is planned to be

completed by July 2010completed by July 2010


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Maj or act ivit iesMaj or act ivit ies

other activitiesother activities

Other activities necessary for powerOther activities necessary for powertrade are being identified andtrade are being identified and

compiled and the necessarycompiled and the necessary

funding are being soughtfunding are being sought-

-


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OnOngoing project sgoing project s

EthiopiaEthiopia--Kenya 400 KVKenya 400 KVfinal feasibility study outfinal feasibility study out

commissioning 2012commissioning 2012EthiopiaEthiopia--Sudan 220 KVSudan 220 KV

commissioning end of 2009commissioning end of 2009EthiopiaEthiopia--Djibouti 283KM of 220 KVDjibouti 283KM of 220 KV

commissioning by 2011commissioning by 2011


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EthiopiaEthiopia--SudanSudan--Egypt 500 HVDCEgypt 500 HVDCfeasibility study report has beenfeasibility study report has been

prepared. Financings are being soughtprepared. Financings are being sought

KenyaKenya Tanzania 400 KVTanzania 400 KV

Discussions are onDiscussions are on--goinggoing

KenyaKenya--Uganda 400 KV / NELSAPUganda 400 KV / NELSAP

commissioning 2013commissioning 2013


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UgandaUgandaRwanda 220 KV /NELSAPRwanda 220 KV /NELSAPcommissioning 2013commissioning 2013

RwandaRwanda--Burundi 220 KV / NELSAPBurundi 220 KV / NELSAPcommissioning 2013commissioning 2013

BurundiBurundi

--DRC 220 KV / NELSAPDRC 220 KV / NELSAP

commissioning 2013commissioning 2013


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OnOn-- going project sgoing project s

RUSOMO Falls Project 80 MWRUSOMO Falls Project 80 MWcommissioning 2014commissioning 2014


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44-- ChallengesChallenges

Financing of the Secretariat to attractFinancing of the Secretariat to attractand retain the necessary staffand retain the necessary staff

Getting all the necessary equipmentGetting all the necessary equipment

eg. Hardware and software for powereg. Hardware and software for power

planning and databaseplanning and database


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5.5. CONCLUSI ONCONCLUSI ON


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Conclusion

The number of bilateral interconnectionprojects under implementation and soon tobe implemented is a testimony that a

regional power market will be a reality in theforeseeable future;

Coordination between different initiatives inthe power sector is in good track but shouldbe further strengthened


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ConclusionConsidering that many projects are goingto be commissioned between 2011 and2013 EAPP must be ready on time to

coordinate the regional trade as 8countries would have been alreadyconnected

EAPP is ready to play its role asmandated by the Governments andUtilities of the Region through the signed

MOUs and by the COMESA Heads ofState and Government through their 11th

-


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Thank You !

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East Africa Power Pool Presentation

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