Starting as an Independent Power Producer in Cote d’Ivoire

“Strategic plan  ‘Vision 2040’ adopted in 2011 with main objective for Cote d’Ivoire to become an industry-driven economy, united in its cultural diversity and democracy and open to the rest of world.”

~ President A.Ouattara

Yesterday we hosted one of our hugely successful monthly webinars and this month’s topic is about “Starting as an independent Power Producer in Cote d’Ivoire”. The guest host for this session was Mr. Toure Sultan Abdoul Karim, who is the Directory of Programming of Public Investments for the Ministry of Planning and Development, Cote d’Ivoire.

In today’s article, we will outline what was discussed.  If you are business owner looking to invest in Africa, this is very much for you.

The Cote d’Ivoire Government has an ambition to become an industry-driven economy that is open to the rest of world.

Cote d’Ivoire:

Cote d’Ivoire new energy policy has the following objectives:

Investments in the energy sector are at the centre of the strategy for Cote d’Ivoire to become an emerging market.

  • To generate sufficient electricity and demand side management
  • To increase installed capacity by approximately 150 MW each year
  • To diversify the generation mix, which currently depends heavily on domestic natural gas
  • To increase participation of independent power producers (IPPs)
  • To improve the institutional framework
  • To restore the financial viability of the energy sector – tariff adjustments and loss reduction

A new energy policy, adopted in 2013 aims to:

  • Increase renewable energy share in national energy mix from 1% in 2015 to 16% in 2030
  • Diversify energy production sources from 80 % fossil fuel and 20 % renewables in 2015, to 66 % fossil fuel and 34 % renewable in 2020
  • To 58 % fossil fuel and 42 % renewable energy in 2030

Foreign companies are invited  to participate via tender process submission and direct approach:

The Public Tender process:

Company independent project submission:

This procedure is mainly used for electrification projects.

In order for you to make a spontaneous proposal to the Ministry of Energy for a planned project, you will need to:

  • Submit a technical and financial offer to Management of the structure of the project
  • The offer will be assessed by the relevant authorities
  • Once approved, a discussion regarding possible clarification and or negotiations will be held
  • From here, a signature of approval by the authorities will mean your project has been approved

Cote d’Ivoire Investment Zones & VAT:

In order to boost investments, an attractive investment regime has been developed.

There are 3 investments zones regimes that have been created with benefits granted for each of them

  • In the investment phase, there is between 40-50% reduction in the amount of custom duties that are paid for equipment, materials as well as first batch of spare parts
  • There is also total exemption from VAT – see below:

Cote d’Ivoire’s Investors Protection:

There are sixteen specific guarantees when you invest in Cote d’Ivoire.  The key guarantees (by Law) we would like to highlight are:

  • You are offered the freedom to invest
  • You have equal rights
  • You have freedom to access foreign currencies
  • You have stability of benefits
  • You will not need to be nationalised and there is no risk of expropriation
  • Your private property is protected

To see full list of investment guarantees, see our full presentation here.

Thank you for your interest in Africa Business Venture, we welcome any questions or enquiries so please do not hesitate to contact us now.

SONIA GALAT

Co-Founder & CEO, ABV

Review of a Solar Project in Rural Cote d’Ivoire

Providing electricity to remote villages is one of the key objectives of the Government of Cote d’Ivoire using renewable energy to create mini-grids. One of the latest projects is the 7-solar hybrid mini-grid in the Zazan region.

We interviewed Azimut 360, the project manager company in charge of the installation of the mini-grids for all the villages.

 

The company got involved in the project through formulating a proposal following a call for proposals from Energy Facility II, a joint European and ACP countries program (African, Caribbean and Pacific countries) established in 2005, aiming at co-financing projects increasing access to modern and sustainable energy services for ACP countries. Thanks to their previous knowledge of running projects in Africa (The Gambia, Sierra Leone, Burkina Faso, Tchad, Mali, Angola and Morocco so far), they managed to get the funding for this project.

Although Azimut 360 faced a number of issues with the local partners,

Azimut360 advised that the key component for their success comes down to the quality and the role of the local partner. For this project, they collaborated with the NGO Akwaba (welcome in Ivorian) to which the responsibility of the social and economic aspect of the project was given. That being said, the organisation faced a number of issues with their local contacts but still managed to overcome any difficulty.

To facilitate the implementation of the project on the ground and better communication with locals, engineers sent to Cote d’Ivoire were both fluent in English and French. The project was financed as described below:

The total capacity for the 7 micro-grids is218,4 kWp. Batteries allow storage of energy for night use. Each installation has a generator that guarantees service if the weather conditions are unfavourable.In addition, 17200m of electrical network was deployed to provide subscribers and new public lighting. For each household, the electricity meters control and limit the electricity consumption.Thanks to the GbrekoKanian project, the 7 villages produce, distribute and consume their own energy

For each village, an association was created to manage the micro-grid. Each association involved the following local community representatives:

– A president,
– A book keeper,
– A representative of women,
– A representative of the youth
– A representative of the most senior members of the community

Such set up guarantees the involvement of the community and ensure the auto-management of the local micro-grids. The members of each association are composed of the subscribers to the grid network.

Additionally, a Federation grouping the 7 local associations has been created to strength and stimulate synergies amongst the 7 villages.In each village, a community “office” serving as a services hub for the village was created. Among the many benefits of the village for the local population, the various micro-grids provide electricity to:

• 698 households
• 6 schools
• A health centre
• 7 wheat mills
• 7 water pumps
• 336 street lights

In addition, the project created 11 jobs of technicians and new possibilities for the local youth with potential for development of local businesses.

Other contributions for local communities relate to public lighting, and women, in special concern, received major benefits from electrical water pumps.

For more information please click below:

Zanzan-Case-Study-2017-AZIMUT360

Cote d’Ivoire Solar potential: 3 essential maps for your understanding

Cote d’Ivoire, located in West Africa, adopted a new energy policy in 2013 with the ambition for Cote d’Ivoire to become an energy hub in the region and export electricity to neighbouring countries. To achieve this ambitious project, the Government of Cote d’Ivoire intends to increase the share of renewable energy in the national energy mix from 1% in 2015 to 16% in 2030.

To fully comprehend the potential for solar based projects, here under are key essential maps we have selected for you:

 

Photovoltaic power potential

Credit: WorldBank/Solargis.com

Map 2 Global horizontal irradiation

Credit: WorldBank/Solargis.com

Map 3: Direct normal irradiation

Credit: WorldBank/Solargis.com