Presentation to EAPIC Conference. by Eng. Joel Kiilu On 28 th August 2015

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1 BUILDING COLLABORATION BETWEEN EAST AFRICAN NATIONS VIA TRANSMISSION INTERCONNECTORS Presentation to EAPIC Conference by Eng. Joel Kiilu On 28 th August 2015

2 1. Potential Power Sources in East Africa 2. Benefits of Regional Integration 3. Regional Power Institutions 4. Regional Power Market Initiatives 5. Power Interconnection Projects 6. Regional Power Trade 7. Regional Power Market Reforms 8. Investment Opportunities 2

3 1. KENYA: Geothermal, hydro, wind, coal, natural gas 2. TANZANIA: Hydro, natural gas 4. UGANDA: Hydro, thermal 5. RWANDA: Small hydro 6. BURUNDI: Small hydro 7. ETHIOPIA: Hydro 8. SUDAN: Hydro, thermal 9. EGYPT: Hydro, thermal, natural gas 10. DRC: Hydro, thermal isolated power systems relying on internal power sources with power shortages limited integration and power exchange 3

4 Access to competitively generated electricity in the region through increased cross-border power trade; Operation of a large power grid that offers reliability and stability of power supply; Savings in operating costs of the interconnected power systems; Emergency support - pooling energy resources reduces the risk of supply shortages; Being able to connect more renewal sources of energy such as wind and solar power: 4

5 Environmental benefits - greenhouse gas emission reduction; Macroeconomic benefits income generation and employment; Accelerated decommissioning of expensive generations options; Support to rural electrification programmes; Cooperation in power sector issues of regional interest and exchange technical and strategic information; Joint planing and development of regional interconnection projects; Developmemnt of efficient regional power market; and 5 Load diversity savings

6 Nile Basin Initiative (NBI) Nile Equatorial Lakes Subsidiary Action Program (NELSAP) East African Power Pool (EAPP) East African Community (EAC) 6

7 I. 9 countries : Burundi, Democratic Republic of Congo, Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, and Uganda working together to develop the resources of the Nile Basin II. ENSAP 3 countries - Egypt, Sudan and Ethiopia Eastern Nile Power Trade Investment Project (ENPTIP) Ethiopia-Sudan Interconnection Project feasibility 7

8 II. NELSAP Regional Power Trade Project (RPTP) Strategic Social and Environmental Assessment of Power Options Study (SSEA). Interconnection Projects Feasibility Studies Comprehensive Basin Wide Study Hydropower plants sites that can supply more than one country have been identified under RPTP (NBI) under the Comprehensive Base Wide study (CBWS). 8

9 Some of NELSAP INTERCONNECTORS

10 A regional institution established in 2005 to coordinate cross-border power trade and grid interconnection among nations of EasternAfrica region. Goal: to be a framework for pooling energy resources, promoting power exchanges between utilities in EA in order to secure their respective power supply, provide mutual assistance in case of failure in their respective power systems and reduce power supply costs based on an integrated master plan and pre-established rules 9 member countries: Burundi, Democratic Republic of Congo (DRC), Egypt, Ethiopia, Kenya, Rwanda, Sudan, Tanzania, Libya and respective power utilities. Uganda and Djibouti have expressed an interest to join EAPP. 10

11 OVERVIEW The Power Pool Established in countries & 12 utilities Libya Egypt Existing Planned Sudan S.Sudan Ethiopia [ Potential Members: Djibouti, Uganda, Eritrea, Somalia, and South Sudan Eastern Africa Power Pool DRC Rwanda Burundi Kenya Tanzania

12 IV. EAPP 1. Regional Power System Master plan and Grid Code Study, completed March 2011 (EAPP & EAC) Power demand forecast Supply-demand balance & Interconnection study Regional Power System Master Plan ( ) EAPP-EAC Interconnection Code. 2. Technical Assistance and Capacity building to the EAPP completed in June 2012 Regional Strategic Roadmap to 2025, Regional action Plans, Commercial agreement templates, Amendment of the IGMOU text and new IEMOU, Regional Market Design, Regional Market Rules EAPP 5-years Business Plan. 12

13 3. Powering Progress Project Power Transmission Standards (PTS), PTS Gap analysis/compliance tools, Institutional development Strategy (IDS) Bilateral Energy Trading/Wheeling agreements. 4. Operationalization of EAPP Coordination Center and Independent Regulatory Body (IRB) Staff training programme for EAPP Secretariat and member utilities workshop for the regulatory authorities Eastern Africa Power Pool Regulatory Forum to lead and facilitate the establishment of the IRB 13

14 EAPP interconnections Regional Interconnection Plan

15 Regional intergovernmental organization of 5 countries; Burundi, Kenya, Rwanda, United Republic of Tanzania, Uganda. Headquarters in Arusha, Tanzania. Sectoral Council on Energy: responsible for the preparation of a comprehensive implementation programme and the setting out of priorities for the energy sector. It monitors and keeps under constant review the implementation of the energy programmes of the Community In promoting regional projects and programmes, EAC collaborates with other regional bodies NELSAP and Regional Power Trade Project (RPTP) both of NBI, Economic Cooperation of the Great Lakes Country (CEPGL) and EAPP 15

16 (i) (i) (ii) The East African Power Master Plan Study was done in It give details on generation and transmission system expansion planning for the region EAPP & EAC Power System Master Plan ( ) prepared in 2011 Priority Projects for Power Sector Development report prepared in Power Generation and Transmission projects without financing. EAC will assist in funds mobilization 16

17 Interconnection Projects Feasibility Studies Completed (i) Kenya (Lessos) - Uganda (Jinja) (ii) Uganda (Mbarara) - Rwanda (Birembo) (iii) Burundi (Kigoma) Rwanda (Rwegura) (iv) Bujumbura (Burundi) - Kiliba (DRC) (v) Burundi Rwanda DRC (vi) Burundi - Rwanda and Tanzania (vii) Ethiopia Kenya (viii) Kenya -Tanzania (ix) Ethiopia-Sudan-Egypt 17

18 Pre-requisites to be put in place: Regional Power Market rules (licensing, guidelines for tariff setting Capacity building in power trade including twining arrangements Institutional/Market reforms Standard power purchasing agreement Standard agreement on power balancing Proposal for cost-based tariff-setting & wheeling framework Proposal related the legal/regulatory framework 18

19 Operationalization of the following: Regional Coordination Center Regional Independent Regulatory Body (IRB) Interconnection Code 19

20 Power Generation Independent Power Producers (IPPs) Public Private Partnership (PPP) Power Transmission Power Distribution & Retail Equipment Manufacturing & Supply Capacity Building 20

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