THE STATE OF POWER EQUATORIAL GUINEA LUZ PARA TODOS

Transcription

1 THE STATE OF POWER EQUATORIAL GUINEA An introduction to Equatorial Guinea s electricity sector: Major projects, investment opportunities and key legislation LUZ PARA TODOS

2 MINISTRY OF MINES, INDUSTRY AND ENERGY MALABO The Ministry of Mines, Industry and Energy s new headquarters has become an iconic building in Malabo II.

3 Designed by architect Saraiva + Associados of Portugal and built by China Dalian, the new Ministry building was opened in 2014.

4 LUZ PARA TODOS

5 CONTENTS Por una Energía Mejor Welcome letter from Minister of Mines, Industry and Energy, H.E. Gabriel Mbaga Obiang Lima 2 Ministry of Mines, Industry and Energy and SEGESA Overview of the organizations 4 Unconstrained Capacity Energy sector key facts and figures 5 Generation Milestones The country s power generation facilities 6 Power Pipeline Chronology of power milestones Sustainable Energy Interview with Delegate Minister of Energy H.E. Fidel Marcos Meñe Nkogo 8 Malabo Turbogas Generation Facility A look at the nation s largest gas-fired power station 10 Bata Power Plant Gas Conversion Converting Bata s power station from fuel oil to gas 11 Strategic Goals Interview with General Director of Energy Alfredo Olo Lima 12 State of Power A map of current projects being implemented across Equatorial Guinea 14 Power Exports The regional electricity market and Equatorial Guinea s increasing competitiveness 16 Electricity for All Interview with SEGESA CEO Lucas Nguema Mbulito 18 Djibloho Hydroelectric Dam Equatorial Guinea s flagship hydroelectric power project 20 Sendje Hydroelectric Dam The country s largest power generation facility under construction 21 Connected Cities Creating economic growth by electrifying cities across the nation 22 Annobón Solar Microgrid Building Africa s largest self-sufficient solar generation and grid system 24 Regulation of the Power Sector Relevant laws and regulations for power sector actors 26 Enter Equatorial Guinea How to work with the Ministry 27 Contact Us Getting in contact with the Ministry 28 1

6 H.E. GABRIEL MBAGA OBIANG LIMA MINISTER OF MINES, INDUSTRY AND ENERGY 2

7 POR UNA ENERGÍA MEJOR It gives me great pleasure, on behalf of the Ministry of Mines, Industry and Energy, to introduce you to Equatorial Guinea s power sector. We have invested billions of dollars of funds and millions of man-hours to build world-class power infrastructure here in Equatorial Guinea. This is all thanks to the collective efforts of our national electricity company, SEGESA, our private sector partners and the Ministry itself. In 2012 we boosted our power supply by almost 50 percent with the inauguration of the Djibloho hydroelectric dam. The Sendje dam will grow this by a further 50 percent when it opens in Our aim is nothing less than the full electrification of this country. To this end, we have launched numerous projects to bring reliable power to all our citizens and businesses and make sure they are connected to the national grid. The Ministry is particularly proud of Equatorial Guinea s contribution to the Central Africa Power Pool. This investment in interconnections with our neighbors to the north, east and south, in addition to the huge increase in generation capacity, means that we can support the development of the whole region. At the Ministry of Mines, Industry and Energy, we believe that reliable, available electricity is a right, not just a privilege. This is the foundation of our increasingly diverse economy. Because of this industry s fundamental importance, we will not cease to invest and to create partnerships that help us meet our aims. We thank you for your interest in our nation s power sector and look forward to working together for a stronger Equatorial Guinea. H.E. Gabriel Mbaga Obiang Lima Minister of Mines, Industry and Energy 3

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9 UNCONSTRAINED CAPACITY Equatorial Guinea has invested in a multitude of projects across the power spectrum in order to assure security of electricity supply to all corners of the nation. National access to electricity 80 percent Installed capacity MW Largest gas thermal plant Malabo Turbogas 154 MW Largest hydro dam Djibloho 120 MW Annobón solar microgrid 5 MW Hydro capacity under construction Sendje 200 MW Planned hydro capacity 400 MW from an additional dam Planned gas thermal capacity 100 MW from a gas-fired plant at Kogo Bioko grid peak demand MW (average, 9 months 2015) Río Muni peak demand MW (average, 9 months 2015) 5

10 GENERATION MILESTONES Equatorial Guinea has 11 power generation and battery backup facilities using diesel, natural gas and hydropower. Bikomo hydroelectric plant 3 x 800 kw turbines Commissioned August 1981 San Joaquín de Bata thermal power plant 2 x 1,000 kva generators Commissioned December 1986 Riaba hydroelectric plant 3.2 MW Commissioned June 1989 Malabo Turbogas phase MW Commissioned billion FCFA Semu thermal power plant 7.2 MW Commissioned September 2004 $3.75 million Bata thermal power plant 24 MW Commissioned September 2007 $21 million Three battery backup facilities 20 MW Commissioned August million Bata battery backup facility 2 x 16,420 kva Commissioned January million Djibloho hydroelectric plant 4 x 30 MW turbines Commissioned May 2012 $ million Malabo Turbogas phase 2 3 x 42 MW Commissioned June million Sipopo thermal power plant 22 MW Commissioned June million 6

11 POWER PIPELINE 2011 Malabo Turbogas 154 MW expansion project underway. First phase of Malabo electrification, and new 66kV power lines and substations Work begins on 200 MW Sendje dam in February with contractor Duglas Alliance. Largest hydro plant in Equatorial Guinea inaugurated. Djibloho hydro dam has 120 MW capacity Government approves building of solar/diesel generation plant on the island of Annobón. SEGESA restructured into three units - Comercial, Generación and Transmisión First phase of Bata city electrification commissioned. Bioko southern towns Riaba and Moca connected to 33 kv grid. Second phase of the construction of mainland transmission lines from Djibloho dam completed Work continues on electrification of 9 mainland towns and amplification of power at 3 more. Completion of Bioko transmission line extension to Malabo III and south of the island. Gas conversion of two out of three turbines at 24 MW Bata power plant begins in August. Rehabilitation of Riaba and Musola hydroelectric facilities due for completion. Djibloho electrification begins. Construction of housing for Djibloho dam operators underway Sendje dam project due for completion, will be largest power generation facility in the country. Reservoir to regulate the flow of the Wele River to be finished. Construction began in Project to build solar/diesel plant and power grid on Annobón due for completion. Full electrification of the city of Djibloho, including power lines and substations, to be completed.

12 SUSTAINABLE ENERGY H.E. Fidel Marcos Meñe Nkogo Delegate Minister of Energy Ministry of Mines, Industry and Energy 8

13 The Ministry of Mines, Industry and Energy is promoting sustainable energy initiatives to ensure a plentiful supply of electrical energy in Equatorial Guinea. H.E. Fidel Marcos Meñe Nkogo was appointed to the post of Delegate Minister of Energy in May WHAT IS THE STRATEGIC IMPORTANCE OF THE ENERGY SECTOR IN THE CONTEXT OF HORIZON 2020? The supply of electricity is essential to the development of modern societies. In that sense, its availability is a decisive factor in the competitiveness of much of the economy. The level of development of the energy industry determines to some extent the development of other industries and services within the country. Access to electricity in the context of Horizon 2020 is a key development indicator, which explains the interdisciplinary character of Equatorial Guinea s energy projects. Such initiatives have social, institutional, economic and educational benefits, and of course, environmental impacts. Their implementation must be integrated into existing and future policies of public agencies. Without the availability of high quality and abundant electricity we can hardly talk about the development of other industries. This has been one of the great successes of the government, which has prioritized the building of solid electricity infrastructure as a starting point for the industrialization process. WHAT ARE THE OBJECTIVES OF THE MINISTRY IN RELATION TO THE HORIZON 2020 PLAN? The National Government, through the Ministry of Mines, Industry and Energy, is aware of the realities outlined above and right now we are continuing with an ambitious program of electrification, which is intended to cover all domestic needs that may arise from residential consumption, to meet the needs of Equatorial Guinea s industrial program and additionally, to strengthen the possibility of exporting electricity outside our borders. The Ministry of Mines, Industry and Energy is investing heavily in hydropower, energy from natural gas and solar. WHAT IS THE IDEAL MIX OF ENERGY FOR EQUATORIAL GUINEA? The ideal energy mix for Equatorial Guinea is the use of sources that are not dependent on imports, considering first renewable energy (such as hydro, solar and wind) that may present some combination of economic interest and reduced environmental impact. Then we look to natural gas and diesel to cover the deficit caused by unruly climate processes. These necessary investments have a return, or benefit, that is both economic and social. The cost that we pay when we replace diesel fuel with more inexpensive and abundant sources is reduced. In the long term, investment in renewables reduce the risk of dependence on hydrocarbons and allows us to better use our local resources. This reduces risk and increases independence in production, and therefore the value of the facilities. New technologies create jobs and increase the knowledge base. These initiatives contribute to the reduction of greenhouse gas emissions. HOW DOES THE POWER SECTOR CONTRIBUTE TO EQUATORIAL GUINEA S REGIONAL COMPETITIVENESS? Equatorial Guinea has participated in several regional energy projects that include renewable energy initiatives under the Sustainable Energy for All (SE4ALL) program. This includes small-scale hydropower in Bioko and other clean energy solutions on remote islands. These are funded by the Global Environment Facility through the UNDP and ensure power supply to remote areas of the country. Similarly, the government through the Ministry of Mines, Industry and Energy is undertaking a series of projects and works throughout the national territory with the aim of providing the country with the necessary infrastructure for generation, transmission and distribution of national and subregional electricity. Equatorial Guinea is a member of the Central Africa Power Pool and it held the presidency of the Council of Ministers from December 2012 up to December The forum is responsible for studying, developing and implementing power integration projects among member countries of the Economic Community of Central African States (ECCAS). Equatorial Guinea is also a member of the Organization for the Office of the Conference of African Energy, where it holds the second vice-presidency. This organization is responsible for addressing issues of renewable energy in Sub-Saharan Africa. 9

14 MALABO TURBOGAS GENERATION FACILITY In 2012 the Government of Equatorial Guinea increased the installed capacity of the Malabo Turbogas generation facility by 500 percent. Three 42 MW turbines were installed, bringing total installed capacity to 154 MW - enough to power the growth of Equatorial Guinea s capital city and industrial developments. The Turbogas plant utilizes Equatorial Guinea s plentiful gas output from the offshore Alba field and is located at the Punta Europa industrial complex. In 2015 the government approved the extension of high voltage transmission infrastructure to supply electricity to the south of Bioko island and parts of the city of Malabo. The Bioko grid has a peak load of around 70 MW. By the end of 2016 all towns on the island will be connected to the grid. The additional generation capacity of the Turbogas plant will allow for continued industrial expansion. Commissioned 2000, cost of $13.5 million Expansion project 2011, expanded by 500% Power capacity 154 MW, 3 turbines Gas feedstock Supplied from Alba field Power supply Bioko grid and industry 10

15 BATA POWER PLANT GAS CONVERSION Until the inauguration of the Djibloho dam, Bata s 24 MW fuel oil-fired thermal power plant was Rio Muni s principal generation facility. In August 2015 the government began a program to upgrade the plant by converting two of its three turbines to gas. Project scope Installation of 2 gas turbines Feedstock LNG from Punta Europa, one turbine to use fuel oil Project start 2015 Project completion 2016 Contractor Setolazar Spanish firm Setolazar is the contractor for the Bata gas conversion project. Converting to natural gas will allow the government to better utilize Equatorial Guinea s abundant gas reserves and will save costs on fuel oil imports. New gas turbines are expected to improve reliability at the plant, which will be able to more effectively back up supply from the Djibloho dam. Liquefied natural gas will be supplied from the Punta Europa gas complex at Malabo and shipped to Bata for regasification. In addition to increasing reliability and decreasing costs, the works at Bata will also reduce emissions at the plant. The government plans to expand the plant to 100 MW following the gas conversion. 11

16 STRATEGIC GOALS Alfredo Olo Lima General Director of Energy Ministry of Mines, Industry and Energy 12

17 The Department of Energy at the Ministry of Mines, Industry and Energy is led by General Director of Energy Alfredo Olo Lima, who has held this position since The Department of Energy has prioritized security of electricity supply to date, and is now setting up the legal framework for electricity exports. WHAT ARE THE MINISTRY S STRATEGIC GOALS FOR THE POWER SECTOR? Our first strategic goal for the power sector is to complete and secure our generation and transmission infrastructure. In Bioko we are investing approximately $140 million to extend the transmission lines to the south of the island and to new and growing areas of Malabo, having already invested in increasing production at the Turbogas plant to 154 MW. This gives us a lot of room for growth. By the end of 2016 we can confidently say that the entire island will be connected. With the final completion of transmission lines from the Djibloho dam in 2015, we can also say that the entire continental has grid coverage. We are now working on the Sendje dam project. Hydroelectric power works only when we have enough rainfall, so we are building another dam upstream of Djibloho and Sendje to secure production. This will be finished in The Bata thermal plant is being converted to gas and diesel and we plan to increase its capacity to up to 100 MW by mid Now we need to look more closely at connections to users. All the large substations are connected to the grid, so the cities have power. The priority now is to spread that power out to the villages. We are also working with the Department of Industry at the Ministry on studies to understand how much electricity the new Industrial City of Mbini will need and when it will be needed, so that we can support the project and allocate supply. We are working with the companies that would come in and use this electricity. HOW IS THE MINISTRY MAXIMIZING EQUATORIAL GUINEA S NATURAL RESOURCES FOR POWER GENERATION? We are making constant efforts to use our resources more efficiently and to save money for the government and for the country. If we have more gas than oil, then we should maximize this resource. This is not an issue solely of finances, it s also an environmental issue. The Punta Europa gas processing facilities in Malabo have the capacity to send liquefied natural gas to Bata for regasification and usage at thermal power stations on the mainland. We also have the availability to sell gas to independent power producer (IPP) investors. In Kogo we are planning to build a 100 MW gas thermal plant as well. We are expanding this capability because we need to back up the Djibloho hydroelectric dam. The memorandum of understanding has been signed and upon approval of the project by the government, this $300-million project will take 18 months. HOW IS THE MINISTRY SHAPING POLICY SO THAT EQUATORIAL GUINEA CAN BECOME A REGIONAL EXPORTER OF ELECTRICITY? Because the country is growing we have concentrated on securing supply. We also know that we have to diversify our economy, which is why we have built substations so that our neighbours can import the power we produce. Ultimately this will generate interest in IPP projects in Equatorial Guinea, supported by new legislation. The biggest market for electricity right now is the government through national power company SEGESA. But with new industries entering, this balance will shift. The new electricity law will make conditions flexible and attractive for companies to generate power here in Equatorial Guinea and transmit that power to other countries. While the government would not necessarily fund generation for export to specific projects outside the country; we would create the opportunity for private companies to build these projects to serve the regional market. The idea is to attract companies and diversify our economy, so we would facilitate entry to the market. We have oil and natural gas production and significant hydro resources, so if an investor wishes to use these resources to generate power, we will support them. We have consulted other jurisdictions so we can apply measures under the new law to attract IPPs to Equatorial Guinea. We are also formulating new tariffs that will lower the cost of electricity for residential and commercial consumers. The government has set up the generation and transmission facilities and we now want to support the people and businesses that are using this power. 13

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20 POWER EXPORTS SHARING THE LOAD The Government of Equatorial Guinea is committed not only to providing safe, clean and reliable electricity to all its people and businesses, but also to providing electricity for its neighbors in Central Africa. In 2003 the country became a member of the Central Africa Power Pool (CAPP), a specialized agency within the Economic Community of Central African States (ECCAS). CAPP is the smallest of four power pools in Sub-Saharan Africa, encompassing the national power sectors of Angola, Burundi, Cameroon, Congo Brazzaville, Gabon, Equatorial Guinea, Central African Republic, DR Congo, São Tomé and Príncipe and Chad. Nevertheless, these 10 countries comprising a population of 147 million have committed $1.4 billion since 2006, most of which has been earmarked for new power generation. Three countries - Angola, Cameroon and DR Congo - represent over 80 percent of consumption in the ECCAS region, but Equatorial Guinea generates by far the most power per capita. The remit of CAPP is to capitalize on the enormous hydroelectric potential within Central Africa to establish a robust regional interconnection network, which supports reliable supply to industry and residents. CAPP OBJECTIVES Improve access to electricity and reduce poverty in member states Enforce energy policy within ECCAS Develop power trading and services within the region Establish a free regional electricity market Ensure safe and reliable supply by rehabilitating electricity systems POINTS OF CONTACT Equatorial Guinea s high voltage interconnections with neighbor states. Akurenam (110 kv, south to Libreville) Mongomo (220kV, east to Gabon) Ebebeyin (220kV, north-east to Yaoundé) EQUATORIAL GUINEA AND THE CAPP Equatorial Guinea is investing significantly in regional power delivery through its own generation and transmission infrastructure. The country has the region s highest per-capita generation rate: more than 0.3 MW per 1,000 people. The 120 MW Djibloho hydroelectric dam has now been connected to a new transmission line encompassing the major towns of the mainland region. Three substations at the borders of Equatorial Guinea link its power supply to the grids of Cameroon and Gabon. Interconnections with its neighbors will allow Equatorial Guinea to promote private power generation using its considerable natural gas and hydro resources. The Ministry of Mines, Industry and Energy foresees that industrial projects in Cameroon and Gabon would be able to import power from independent power producers based in Equatorial Guinea. The country would benefit from another avenue to economic diversification by commercializing its power business while fostering regional growth. This initiative will be supported by a new electricity law. The Ministry also plans to pass legislation to enable the lowering of tariffs for all customers. 16

21 ANGOLA Population 21,470,000 Installed Capacity 1,530 MW Power Per Capita W/1,000 people BURUNDI Population 10,160,000 Installed Capacity 50 MW Power Per Capita 4.92 W/1,000 people CAMEROON Population 22,250,000 Installed Capacity 1,010 MW Power Per Capita W/1,000 people CENTRAL AFRICAN REPUBLIC Population 4,616,000 Installed Capacity 40 MW Power Per Capita 8.67 W/1,000 people CHAD Population 12,830,000 Installed Capacity 30 MW Power Per Capita 2.34 W/1,000 people DR CONGO Population 67,510,000 Installed Capacity 2,510 MW Power Per Capita W/1,000 people EQUATORIAL GUINEA Population 1,222,442 Installed Capacity 390 MW Power Per Capita W/1,000 people GABON Population 1,672,000 Installed Capacity 420 MW Power Per Capita W/1,000 people REPUBLIC OF CONGO Population 4,448,000 Installed Capacity 150 MW Power Per Capita W/1,000 people SÃO TOMÉ AND PRINCIPE Population 192,993 Installed Capacity 20 MW Power Per Capita W/1,000 people 17

22 ELECTRICITY FOR ALL Lucas Nguema Mbulito Chief Executive Officer SEGESA 18

23 SEGESA is responsible for generation, transmission and distribution of electricity to Equatorial Guinea s businesses and residents. Formerly the Chief of Cabinet at the Ministry of Mines, Industry and Energy, Lucas Nguema Mbulito was appointed CEO of the national electricity company in June HOW DOES SEGESA PLAN TO MAKE POWER AVAILABLE TO ALL LOCATIONS IN THE COUNTRY? As the public electricity company of Equatorial Guinea, SEGESA has a huge part to play in the country s development. Rapid industrialization has been facilitated to a large degree by the constant electricity supply that SEGESA has provided. We are now at a stage where we can support the implementation of new technologies to make sure that we serve the most remote areas. On the island of Annobón, for example, MAECI Solar is installing a 5 MW solar plant with diesel backup a landmark project in Africa. To improve power delivery, the Ministry of Mines, Industry and Energy is making huge investments in strengthening the SEGESA grids and extending power lines to new locations. The Ministry s ongoing project with China Machinery Engineering Corporation to electrify or increase supply to 12 mainland towns, for example, will cost over $260 million. SEGESA will then be able to deliver an enhanced service at more locations. Electricity for all means doing what is necessary to extend service to all parts of the country. We are on track to reach our goal of 100 percent electrification by EQUATORIAL GUINEA CONTINUES TO IMPLEMENT LARGE SCALE POWER GENERATION PROJECTS. WHAT IS SEGESA S STRATEGY FOR THIS PROGRAM? Our strategy has two main parts. Primarily, the Ministry of Mines, Industry and Energy and its partners are investing in projects that provide full power availability for this country. This capacity will be managed by SEGESA. It means we can continue to develop large industrial projects at locations such as Mbini and Riaba, we can secure supply for the growing city of Djibloho and we can ensure a better quality of life for our people. A survey commissioned by SEGESA tells us that we are delivering a more reliable and secure service to our customers. Second, we see an opportunity for Equatorial Guinea to become a leader in the regional electricity business through the Central Africa Power Pool. The Ministry has built three interconnection points so that we can export power to Cameroon and Gabon. The Ministry s investment in SEGE- SA s high voltage lines connecting the Djibloho dam to mainland cities, plus the interconnections, is almost $650 million. This is a strategic investment in our regional competitiveness and our country s future. SEGESA IS THE FRONT-FACING ORGANIZATION OF EQUATORIAL GUINEA S POWER BUSINESS. WHAT DO YOUR CUSTOMERS SAY ABOUT THE COMPANY? A survey commissioned by SEGESA in August 2015 tells us that we are delivering a more reliable and secure service to our customers. We are pleased that our work is being so comprehensively recognized. More than 90 percent of people in Malabo said that blackouts were becoming less frequent and 92 percent said that SEGESA s performance dealing with outages had improved. We continue to work to improve our performance and to provide more residents of this country with dependable power supply every day. To do this, we depend on committed partners from around the world, and we foster a culture of innovation so that we can provide energy solutions that brighten the prospects of Equatorial Guinea and its people. 19

24 DJIBLOHO HYDRO- ELECTRIC DAM The Djibloho dam was not the country s first dam, but it is by far the largest, at 120 MW capacity. It feeds a newly renovated and extended continental grid that reaches all the major towns of the Río Muni area. The grid also feeds three interconnection points at the borders of Equatorial Guinea with Gabon and Cameroon. Djibloho is situated on the Wele River in the center of the mainland region of Equatorial Guinea. Contractor Sinohydro began work at the site in 2008 and commissioned the 22-meter high and 274-meter long concrete gravity dam in The project was funded by the Government of Equatorial Guinea with the assistance of the China Exim Bank. Djibloho is a milestone in that it allows Equatorial Guinea to provide full power availability to all connected users in the mainland area. To increase the efficiency of the dam, the government is building a new reservoir upstream to regulate water flow. Power capacity 120 MW Contractor Sinohydro Construction started 2008 Commissioned 2012 Power supply Mainland grid and regional interconnections 20

25 SENDJE HYDRO- ELECTRIC DAM Due for commissioning in 2017, the 447-million Sendje dam will supersede Djibloho as the nation s largest single generation facility, at 200 MW. Contractor Duglas Alliance began work at the site on the Wele River 40 kilometers east of Bata in February Power capacity 200 MW Contractor Duglas Alliance Construction started 2012 Commissioning 2017 Cost 447 million The facility will produce power from four 50 MW turbines supplied by Alstom. The project is so far proceeding on schedule: In September 2015 Duglas Alliance closed the Wele River during a period of low rainfall to be able to build the dam structure. Like Djibloho, Sendje will feed the mainland grid and regional interconnections and is a key part of Equatorial Guinea s regional power plans. Sendje and an upcoming 400 MW dam project demonstrate the government s commitment to fully developing hydro resources in a region with vast untapped potential. 21

26 Transmission Lines in Malabo Electrification 9 cities in Rio Muni Amplification 3 cities in Rio Muni Contractor for electrification and amplification CMEC Value of mainland cities projects $262 million Djibloho projects Gas power generation, reservoir and city-wide electrification Contractor for Djibloho projects Sinohydro Value of Djibloho projects $478 million 22

27 CONNECTED CITIES The Government of Equatorial Guinea has embarked on a massive project to bring electricity to all its citizens. Provision of reliable power to the entire country has the potential to create sustainable economic growth and to improve the quality of life for all residents: Luz para Todos is a national priority. Better use of natural resources such as natural gas, solar energy and hydroelectric power are part of the equation. But investments in transmission and distribution are necessary to bring power to the homes and businesses of Equatorial Guinea. of projects, all to be completed by contractor Sinohydro, will include a million cubic meter reservoir on the Wele River and a $242-million city-wide electrification project. At Mbini, site of a landmark industrial city, the Ministry of Mines, Industry and Energy is commissioning studies to assess the new city s future power needs. In 2015 the government began a program to link nine mainland cities to the high-voltage Río Muni grid, which draws power from the Bata thermal and Djibloho hydro plants. The cities are Mbini, Kogo, Akurenam, Nsork, Akonibe, Asok, Nkue, Micomeseng and Nsok Nsomo. Additionally, the project aims to increase power supply to three cities: Añisok, Niefang and Ebibeyin. In total, the project will cost the government almost $262 million and is being carried out by China Machinery Engineering Corporation. Djibloho, the future capital of Equatorial Guinea, is undergoing an energy transformation. A total of almost half a billion US dollars 23

28 ANNOBÓN SOLAR MICROGRID Africa s largest self-sufficient solar microgrid is being built on the remote island of Annobón, 659 kilometers south of Bioko. Approved by the Equatorial Guinea government in August 2013, the project encompasses 5 MW of solar modules, 3 MW of battery storage and an energy management system. Once completed in 2018 it will provide clean, reliable and aroundthe-clock service to satisfy power demand for all of Annobón s 5,000 residents. The new generator and grid could create up to 1,000 direct and indirect jobs and significantly raise standards of living on Annobón. The solar installation will be backed up by diesel generators. US-based MAECI Solar is supplying solar modules and system integration for the project. MAECI is collaborating with Wise Power Systems on the solar design and engineering. The technology deployed will comprise custom-made double glass modules with a microgrid system integration. US power management company Eaton is providing electrical engineering services and power distribution equipment, including switchgear assemblies, circuit protection devices and power transformers. Other participants include GE Power & Water and Princeton Power Systems. Annobón, a sloping volcanic island with lush vegetation, relies on timber and fishing to drive the economy. The solar microgrid is part of the Horizon 2020 plan to diversify Equatorial Guinea s economy and bring growth to vital sectors like agriculture, forestry and fishing. The project could become a model for bringing electricity to Equatorial Guinea s rural areas. 24

29 Capacity 5 MW Start date 2016 Completion date 2018 Location Island of Annobón Annobon population 5,000 Job creation 700-1,000 Project Manager MAECI Solar Contractors Wise Power Systems GE Power & Water Princeton Power Systems 25

30 REGULATION OF THE POWER SECTOR LAWS AND LEGISLATORS The first law governing Equatorial Guinea s electricity was the pre-independence Royal Decree, established in Post independence, Equatorial Guinea has based electricity legislation on the Fundamental Law. This law was updated in 2012 to incorporate constitutional changes following a 2011 referendum. The primary lawmaking body for national electricity policy is the Ministry of Mines, Industry and Energy. The Ministry is responsible for regulation and compliance in the sector. Specific laws that deal with power sector management, tariffs and operations were passed in 2002 and Private companies wishing to invest in the sector must obtain licenses from the Ministry and can enter partnerships with SEGESA, the national electricity company. A new law and tariff system is set to incentivize independent power production. NEW DEVELOPMENTS The Ministry of Mines, Industry and Energy has drafted a new electricity law that accounts for new realities in management and operation of the power sector. Through SEGESA the government is the provider of, and customer for, almost all of Equatorial Guinea s power at present. The Ministry anticipates that with increasing industrialization in Equatorial Guinea and neighbor states, this will change. The new law will open the sector to investment in production by independent power producers and that electricity could be sold across borders to specific projects. The Ministry of Mines, Industry and Energy plans to revise electricity tariffs downward to stimulate industrial development and bring cheaper power to residential consumers. LAW DECREE NO. 03/2002 This law, passed in May 2002, dictates electricity tariffs for all users and establishes a framework for identifying the costs of producing electricity from different sources (such as natural gas, hydro dams and fuel oil or diesel). This is the most important piece of legislation governing the power sector. Tariffs have not been modified since the passing of this law. REGULATION 02/24 This regulation provides the conditions, under the 2002 law, for high-priority projects to gain approval and regulates the approval of cross-border projects serving Equatorial Guinea s neighbors in the CEMAC economic area. LAW DECREE NO. 20/2005 This law is the basis for making electricity a cornerstone of the government s 2020 economic objectives to modernize Equatorial Guinea. It sets out rules for the use of electricity on a national scale and will be the basis for further legislative change. 26

31 ENTER EQUATORIAL GUINEA Companies that plan to invest in Equatorial Guinea should follow the guidelines listed here. We strive to continually improve the quality of our electricity provision and invest in new technologies with global partners. On behalf of the Government of Equatorial Guinea, the Ministry of Mines, Industry and Energy extends a warm welcome to Central Africa s most attractive power market. SEND A LETTER OF INTENT TO THE DEPARTMENT OF ENERGY AT THE MINISTRY. THE MINISTRY CONDUCTS DUE DILIGENCE AND PROCESSES YOUR REQUEST. IF YOUR REQUEST IS SUCCESSFUL, YOU WILL BE INVITED TO THE COUNTRY TO CONDUCT FEASIBILITY STUDIES. YOUR COMPANY COMMUNICATES ITS PROJECTIONS FOR YOUR ACTIVITIES AND OPERATIONS. IN CASES WHERE THE MINISTRY JUDGES A PROJECT TO BE VIABLE, WE WILL WORK TOGETHER WITH YOUR COMPANY TO BEGIN ACTIVITIES. Under the new electricity law, IPPs will be encouraged to set up operations in Equatorial Guinea and incentivized to do so. Such companies must provide information on the end user if that company intends to export power to a project in a neighboring country. The company must also consider where feedstock will be sourced and how it will coordinate with SEGESA. The Ministry intends to provide all assistance that might be needed for new IPPs and technology providers that wish to enter Equatorial Guinea and contribute to the growth of the power sector. 27

32 POR UNA ENERGÍA MEJOR Companies that wish to contribute to the growth of Equatorial Guinea s power sector are invited to contact the Department of Energy. or write to us at the Ministry of Mines, Industry and Energy in Malabo II to discuss your project. CONTACT US Department of Energy Ministry of Mines, Industry and Energy, Malabo II energia@mmie.gob.gq 28

33 LUZ PARA TODOS

34 THE STATE OF POWER Department of Energy, Ministry of Mines, Industry and Energy, Equatorial Guinea Equatorial Guinea is making good on its promise to supply reliable power to its population and to contribute to the Central Africa Power Pool by fully developing its hydro potential.

35 The Djibloho dam, inaugurated in 2012, is by far the country s largest hydro facility at 120 MW capacity. Due for commissioning in 2017, the Sendje dam will produce 200 MW.

36 MINISTRY OF MINES, INDUSTRY AND ENERGY EQUATORIAL GUINEA