Mali (2012)

Degree of reliance on imported energy: 

<p>
Mali has limited developed domestic energy supply and increasing energy demand. In recent years, electricity demand has grown at 10% per year. To meet this demand Mali has relied more heavily on expensive diesel generation and imports from neighbouring countries. All petroleum products are imported trough principal trunk roads leading to the West African ports, i.e. Abidjan (Ivory Coast), Cotonou (Benin), Dakar (Senegal), Lome (Togo), and Tema (Ghana). The petroleum product consumption is dominated by diesel oil.<br />
<br />
Annual imports represented 710,642 tonnes in 2010, over USD 722.75 million. Volume of fuel consumption of the utility EDM SA tripled in the period from 2005 to 2010. From 2009 to 2010 volume of fuel consumption increased considerably by 23.7%.</p>

Main sources of Energy: 

<p>
Total installed on-grid and off-grid electricity capacity (2010): 330.6 MW</p>
<ul>
<li>
Thermal: 53.47%</li>
<li>
Hydro: 46.44%</li>
<li>
Solar PV: 0.09%</li>
</ul>
<p>
&nbsp;</p>
<p>
Renewable energy (RE) (excluding large hydro &gt; 10 MW) have never been properly and completely accounted for&nbsp; any analysis, but could represent around 3% of conventional electricity generated, or about 9 MW.</p>
<p>
&nbsp;</p>
<p>
Electricity generation is vulnerable to climate variability since a significant portion of the supply in the Energie du Mali-Societe Anonyme (EDM SA) network comes from hydro power plants.</p>
<p>
&nbsp;</p>
<p>
Electricity prices in Mali are high compared to similar countries in the region, especially considering the poverty levels of the population. The cost of producing power in Mali is between $0.33 and $0.39 per kilowatt-hour and, depending on the referential year, is significantly higher than in similar countries. This is because Mali&rsquo;s power costs are pegged to international oil prices given its predominantly thermal-based generation capacity, and are prone of additional markups related to transport.</p>
<p>
&nbsp;</p>
<p>
Total primary energy supply (2007): 3,500 ktoe</p>
<p>
&nbsp;</p>
<p>
Biomass: 78%</p>
<p>
&nbsp;</p>
<p>
Oil and Products: 18%</p>
<p>
&nbsp;</p>
<p>
Electricity: 4%</p>
<p>
&nbsp;</p>
<p>
The energy demand in Mali is dominated by the residential sector, which accounts for about 70% of the country&rsquo;s total consumption. This consumption is itself dominated by wood and charcoal for cooking.&nbsp; [1] Biomass accounts for nearly 80% of the national energy supply. The pervasive use of biomass for domestic purposes is a contributor to deforestation and respiratory illness in Mali. The challenge for Mali is to meet its growing energy demand with affordable, reliable, domestic and imported energy supplies.</p>
<p>
&nbsp;</p>
<p>
Mali&rsquo;s energy situation is characterized by:</p>
<ul>
<li>
An energy balance dominated by fuel wood - an indication of the immense pressure on the country&rsquo;s forests. The deforestation rate is about 400,000 hectares per annum, to cater for approximately 6 million tonnes in yearly demand for wood;</li>
<li>
Sharp growth in electricity demand, about 10% a year,&nbsp; needing major investments to increase power generation capacity as well as transmission and supply;</li>
<li>
Rise in the electrification rate by 4% per year;</li>
<li>
Sharp rise in transport sector consumption, 80% of which is due to vehicular movements and 20% to the increasing number of vehicles.</li>
</ul>

Country: 

Mali

Extent of the network: 

<p>
National electricity access rate (2009): 18%<br />
Urban: 59%<br />
Rural: 12%<br />
<br />
Access to electricity in Mali more than doubled in the last decade, helped by the introduction of a successful program for rural electrification, AMADER, which widened access to more than 36,000 rural households since 2003.<br />
<br />
However, there is a substantial rural-urban gap in access. Mali&rsquo;s population is 13 million, but there are only about 150,000 electricity connections, two-thirds of which are in the capital city of Bamako. The ratio of urban connections to rural connections is fourteen to one. The rural-urban electrification divide reveals that the country&rsquo;s improvements in service access and quality were either in areas that were already electrified or were a result of extending the network to areas close to an EDM supply point.</p>

Capacity concerns: 

<p>
Mali still faces critical power sector infrastructure challenges. The cost of producing power in Mali is among the highest in the region ($0.33&ndash;0.39 per kWh), an obstacle to expanding access to unconnected households. Despite recent achievements, only about 18% of the population enjoys access to electricity, much lower than the rates found in other low-income countries on the continent. Furthermore, the power tariff of about USD 0.20 per kilowatt-hour, while relatively high, is still insufficient to cover costs. Diversification of the generation mix is necessary. This will involve tapping the country&rsquo;s hydropower potential and increasing reliance on imports.</p>

Potential for Renewable Energy: 

<p>
<b>Solar energy</b><br />
Average solar radiation in Mali is well distributed over the national territory with an estimated 5-7 kWh/m2/day and a daily sun lighting duration of 7-10 hours. The global typical average is only around 4-5 kWh/m2/day.<br />
<br />
<b>Wind energy</b><br />
Relatively significant wind energy potential is estimated, depending on the region of Mali. In the Sahelian and Saharan zones, the annual average wind speed is estimated at 3 to 7m/s. A wind resource mapping project is currently under finalisation.<br />
<br />
<b>Biomass/Biofuels</b><br />
Mali has:</p>
<ul>
<li>
in terms of fuel wood, about 33 million hectares with a standing volume of 520 million cubic metres and a weighted productivity in the entire country of about 0.86 cubic metre/ha/year;</li>
<li>
several million tonnes of agricultural residues and plant waste;</li>
<li>
an overall annual production capacity of 2,400,000 litres of alcohol since 1997; and</li>
<li>
about 2000 hectares of jatropha plantations for sustainable bio-fuel production.</li>
</ul>
<p>
<br />
Opportunities also exist to develop the capacity of sustainable biomass and biofuel uses, given the strong agricultural base of the economy. In particular, opportunities to scale up biofuel projects, diversifying Jatropha uses for household electrification and to power productive uses for agricultural businesses in rural areas (such as grinders and de-huskers) could be explored further. A specific atlas to estimate the potential of agricultural residues that can be developed for energy generation is under finalisation.<br />
<br />
<b>Hydropower</b><br />
The inventory of hydroelectric sites helped to identify about 10 sites mainly situated on the Niger and Senegal River with total estimated power of around 1,150 MW and an annual average energy generation of about 5,000 GWh. Of this potential, about 250 MW have been developed so far: Selingu&eacute; and Sotuba Hydro Power Plants on the Niger River, Manantali Hydro Power Plant on the Senegal River (whose output is shared with Senegal and Mauritania). Among the potential mini and micro-hydro power sites identified, five represent potential mini-hydro power investments. There are also many sites for micro-hydro power plants.</p>

Potential for Energy Efficiency: 

<p>
Mali has a significant energy efficiency potential, mainly in the residential, industrial and tertiary sectors (in terms of electricity demand), and the transport sector (for petroleum products).&nbsp; This potential can be harnessed for the country&rsquo;s energy supply security and the reduction of cost.&nbsp; Projects are currently ongoing to improve the energy efficiency of public buildings, as well as a large-scale energy-efficient light-bulb dissemination program, and numerous demand-side management measures.<br />
<br />
The total energy consumption throughout 2007 was 730.7 GWh, as opposed to 666.4 GWh in 2006. This corresponds to an increase of 9.7 %. Low voltage sales for the whole EDM&ndash;SA were 424.7 GWh 2007 as opposed to 373.5 GWh in 2006, equalling an increase of 13.7%.<br />
<br />
<strong>Industry</strong></p>
<ul>
<li>
Energy monitoring and accounting for high-consumption industries, to select the most EE technologies.</li>
<li>
Pilot projects for EE technology use.</li>
<li>
Energy audits for high-consumption industries.</li>
</ul>
<p>
<strong>Utilities</strong></p>
<ul>
<li>
Grid connected RE: Biomass (10MW), Wind (10MW) and CSP (5MW)</li>
<li>
World Bank support: Transmission and distribution reinforcement and extension; and&nbsp; Energy efficiency and demand side management.</li>
</ul>
<p>
<strong>Transport</strong></p>
<ul>
<li>
Development of biofuels as an additive.</li>
<li>
Implementation of the Urban Travel Plan for Bamako.</li>
</ul>
<p>
<strong>Residential</strong></p>
<ul>
<li>
EE buildings pilot projects (thermal performance).</li>
<li>
Energy classifications and standards for appliances (refrigerators and A/C).</li>
<li>
10,000 Solar water heater dissemination pilot programs.</li>
<li>
700,000 LELB distribution.</li>
</ul>
<p>
<strong>Public</strong></p>
<ul>
<li>
Pilot energy diagnosis activities for public institutions, as well as thermal renovations for administrative buildings.</li>
<li>
300,000 low energy light bulbs (LELB) distribution for tertiary institutions.</li>
<li>
15,000 EE LELB for street lighting.<br />
&nbsp;</li>
</ul>

Ownership: 

<p>
<b>Electricity market</b><br />
The electricity industry was state-owned up until 2000 when reforms transferred 60% of the property to &ldquo;strategic partners&rdquo; consisting of SAUR International and IPS West Africa. After five years of private operation, SAUR International sold its shares to the Government of Mali&nbsp; in October 2005. IPS West Africa is now holding 34% of the Malian utility &ldquo;&Eacute;nergie du Mali&rdquo; (EDM&ndash;SA). The Majority of shares, however, are in the hand of the state of Mali.<br />
<br />
In the rural areas, private local energy companies and local initiatives ( such as communities and women associations), with support from the Malian Agency for the Development of Domestic Energy and Rural Electrification (AMADER), are the drivers of Mali&rsquo;s rural energy access agenda. The Government launched the ambitious rural energy access program in the last decade to achieve the rural electrification goals set in the National Energy Policy.<br />
<br />
<b>Liquid fuels market</b><br />
The petroleum sector falls under different ministries,with involvement from the Ministries of Finance, Economy-Industry and Trade, as well as Energy. A reform of the sub-sector, undertaken in 1992, means that the state has limited its role to planning and regulation of the supply-delivery chain through its technical departments. These are:</p>
<ul>
<li>
The National Office of Petroleum Products (O.N.A.P).</li>
<li>
The National Directorate of Trade and Competition (D.N.C.C).</li>
<li>
The National Directorate of Transport (D.N.T).</li>
<li>
The Directorate-General of Customs (D.G.D).</li>
</ul>
<p>
<br />
In 2003, there were twenty five private oil operators, including the members of the &ldquo;Oil Industry Professionals Group&rdquo; (GPP) who are local subsidiaries of the multinational companies operating in the country (Mobil, Shell, and Total-Mali).<br />
<br />
<b>Biomass market</b><br />
Biomass energy is under the supervision of the Ministry of Environment and Sanitation, whilst the Ministry of Energy, Mines and Water manages the demand aspects including efficiency and substitution policies. Among the strategies are the empowerment of rural communities&rsquo; through the creation of rural markets, the improvement of the institutional and legal framework of the forests management and the promotion of alternative energy sources, such as liqufied petroleum gas.<br />
<br />
Other actors are:</p>
<ul>
<li>
The Soci&eacute;t&eacute; de Gestion de l&rsquo;Energie de Manantali (SOGEM,Trust company of Manantali Energy), which includes Mali, Guinea, Mauritania and Senegal;</li>
<li>
ESKOM Energie de Manantali (ESKOM Energy of Manantali), Malian subsidiary of ESKOM Corporations (South Africa), in charge, on behalf of SOGEM, of operating and maintaining the Manatali dam, and producing and transporting the energy of the hydroelectric power station to the other three OMVS countries; Sengal, Mauritania and Guinea.</li>
</ul>

Structure / extent of competition: 

<p>
Electricity is supplied by:</p>
<ul>
<li>
&Eacute;nergie du Mali (EDM-SA) - the state-owned utility;</li>
<li>
Decentralized private energy services companies and local initiatives supervised by the rural energy national agency AMADER; and</li>
<li>
Independent auto-producers (mines, other industries and private producers), under a licence.</li>
</ul>
<p>
<br />
Auto-power producers in Mali are mainly mining companies and manufacturing industries. The equipment generally used is an isolated diesel generator, which has high running costs. Captive power generation in only two main regions of Mali is estimated at 132 MW, which is equivalent to approximately 40% of the EDM&rsquo;s grid electricity supply. Currently, some agro-industrial industries are starting to green their energy mix, including use of agricultural residues for electricity generation. This method, which is growing, involves the use of rice husks or sugarcane residues, for instance.</p>

Existence of an energy framework and programmes to promote sustainable energy: 

<p>
Mali&rsquo;s vision and targets have been formulated in key policy papers.</p>
<ul>
<li>
National Energy Policy (NEP):&nbsp;&nbsp; Mali&rsquo;s energy sector is governed by the NEP, adopted in 2006. The overall objective is to contribute to the country&rsquo;s sustainable development through the provision of affordable energy services in order to increase access to electricity and promote of socio-economic activities. The specific objectives of the NEP are:</li>
</ul>
<ol>
<li>
Meeting the energy needs in quality, quantity and cost;</li>
<li>
Ensuring the protection of persons, property and environment against the risks of inappropriate energy services;</li>
<li>
Strengthening the capacities of policy, management, monitoring and control of the energy sector; and</li>
<li>
Strengthening the benefits of international cooperation in the field of energy. In terms of guiding principles, these are based on decentralization, liberalization, a programmatic and participatory approach, competitiveness and on the implementation of public-private partnerships.</li>
</ol>
<ul>
<li>
The NEP constitutes a tool for:</li>
</ul>
<ol>
<li>
Establishing a better match between energy availability and national socio-economic development;</li>
<li>
Fostering synergies between the activities of major stakeholders in the energy sector;</li>
<li>
Effectively directing the interventions of public and&nbsp; private actors of the energy sector for a rapid, balanced, and sustainable development of the country; and</li>
<li>
Ensuring a better balance between energy supply and demand with a view to improved access to electrification and reduce geographic unbalances between the grid and off-grid areas covered.</li>
</ol>
<p>
&nbsp;</p>
<ul>
<li>
<i><b>National Strategy for the Development of Renewable Energy (2006)</b></i></li>
</ul>
<p>
The National Strategy for the Development of Renewable Energy adopted in 2006 aims to:</p>
<ul>
<li>
Promote the widespread use of renewable energy technologies and equipment to increase the share of renewable energies in national electricity generation up to 10% by 2015;</li>
<li>
Develop the bio-fuel subsector for various uses (electricity generation, transportation, agricultural motorization, etc.);</li>
<li>
Create better conditions to sustain renewable energy services; and</li>
<li>
Search for sustainable and suitable financing mechanisms for renewable energies.</li>
</ul>
<p>
<br />
So far, the implementation of this national strategy has not been very successful. The strategy is expected to be revised soon, in line with the revision of the National Energy Policy.<br />
&nbsp;</p>
<ul>
<li>
<i><b>National Strategy for the Development of Biofuels (2008)</b></i></li>
</ul>
<p>
Adopted in June 2008, it aims, firstly, at enhancing affordable local energy production through the development of bio-fuels to meet the country&rsquo;s socio-economic needs and, secondly, reducing the country&rsquo;s dependency on oil imports.<br />
&nbsp;</p>
<ul>
<li>
<i><b>Energy Sector Policy Letter (2009-2012)</b></i></li>
</ul>
<p>
In addition to the National Energy Policy, the sector policy framework is complemented by the Energy Sector Policy Letter covering the period between 2009 and 2012. This Letter constitutes a reference and guiding framework of the government&rsquo;s energy vision. The main goal is to carry out the necessary adjustments and reforms in the electricity subsector, such as the completion of the restructuring of EDM and tariff reforms, and take steps to ensure its sustainable development. It is focusing on the following main objectives: (i) to provide wide access to rural energy services at an affordable cost; (ii) to develop all available renewable energy sources; and (iii) to promote access to finance.<br />
<br />
The Government has developed its medium term development strategy in the national Growth and <i>Poverty Reduction Strategy Paper</i> (namely CSCRP). In the CSCRP 2007-2011, the energy sector is considered as a key support sector for the development of the country, as part its third pillar &ldquo;Infrastructure Development and Support to Productive Sectors&rdquo;. The Government is currently finalizing its new CSCRP 2012-2017, with the following overall objective: <i>Make Mali an emerging country and an agricultural power with good quality of life for its population</i>. To achieve this goal, the energy sector must be strongly developed, especially the renewable energy sub-sector that has great potential to be scaled up in the country.<br />
<br />
In addition to the renewable energy strategies mentioned above, the National Action Program for Adaptation to Climate Change (NAPA), submitted and disseminated in 2007, comprises renewable energy projects, some of which have been partially implemented. Furthermore, in 2011, the goverment elaborated a National Climate Change Policy and a National Climate Change Strategy, the two documents integrate renewable energy sources in their action axes.</p>

Current energy debates or legislation: 

<p>
The Government is currently discussing the allocation of&nbsp; the <i>Scaling-Up Renewable Energy Programme</i> (SREP) resources.<br />
<br />
They aim to develop, in cooperation with local commercial banks, adequate banking mechanisms and credit lines to increase the participation of financial institutions in the development of renewable energy technologies. This is for both utility scale independent power producer (IPP) projects and local private investors involved in rural electrification. It will complement the implementation of the utility scale solar IPP project and the hybrid rural electrification project.<br />
<br />
They also hope to&nbsp; expand the financial envelope for critical infrastructure investments. The government envisages tapping into SREP reserve funds, an estimated amount of USD 20 million, as they become available and are approved to the SREP pilot countries. Detailed proposals for reserve funds allocations will be transmitted for consideration by the SREP Sub-committee in due time.</p>

Major energy studies: 

<p>
Interconnection with neighbouring countries continues to be a priority for the government as one of its most cost effective options for Mali to meet its increasing electricity demand. Mali is part of the West African Power Pool (WAPP), which was created in 2005 as a special institution of ECOWAS (The Economic Community Of West African States) with the objective of integrating the member states&rsquo; national power system operations into a unified regional electricity market. As a member of WAPP, Mali is part of the complex regional power transmission plan that will eventually interconnect all the 14 ECOWAS member states.<br />
<br />
Mali is also a member of the Organisation for the Valorisation of the Senegal River (OMVS, http://www.omvs.org/), a regional co-operation initiative between Mali, Guinea, Mauritania and Senegal, whose objective is to exploit the considerable hydrological resources of the Senegal river for the potential economic and social benefits for all member states, as well as to promote improved access to health and energy services in the region.<br />
<br />
Mali Energy Conservation Development Strategy &ndash; African Development Bank&nbsp; (May 2010). Avaliable online at:<br />
<a href="http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operati...(2).pdf ">http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operati...(2).pdf </a>[Acessed 23 June 2012]</p>

Role of government: 

<p>
Mali&rsquo;s institutional framework for energy conservation is handled by the following institutions:</p>
<ul>
<li>
The National Energy Directorate (DNE), responsible for formulating energy policy, general planning and coordinating the activities of energy sector stakeholders;</li>
<li>
&Eacute;nergie du Mali (EDM-SA), a para-statal responsible for power generation, transmission and supply. It is also responsible for drinking water supply;</li>
<li>
The National Petroleum Products Office (ONAP), established in 1992, and responsible for managing petroleum imports; and</li>
<li>
The Electricity and Water Regulatory Commission (CREE), established in 2000 and under the supervision of the Prime Minister&rsquo;s Office. It is an independent and autonomous authority responsible for pricing for concessionaires, consumer protection and compliance with market competition.</li>
</ul>

Government agencies in sustainable energy: 

<ul>
<li>
<b>The National Centre of Solar Energy and Renewable Energies (CNESOLER)</b></li>
</ul>
<p>
As a division of the National Direction of Energy, the CNESOLER is in charge of the research and promotion of renewable energy equipments, i.e. in the fields of biomass, micro-hydropower, solar and wind energies, including aero generators and wind mills for water pumping systems.</p>
<ul>
<li>
<b>Malian Agency for the Development of Household Energy and Rural Electrification (AMADER)</b></li>
</ul>
<p>
Established in 2003 and under the supervision of the Ministry of Energy and Water, AMADER&rsquo;s main purpose is to manage domestic energy consumption, ensure community forest conservation and develop access to electricity in rural and peri-urban areas.<br />
&nbsp;</p>
<ul>
<li>
<b>The National Agency for the Development of Bio-fuels (ANADEB) </b></li>
</ul>
<p>
Under the supervision of the Ministry of Energy and Water, ANADEB was established in 2009 with the prime purpose formulating and implementing the national bio-fuels policy.</p>
<ul>
<li>
<b>Malian Agency for Radioprotection (AMARAP)</b></li>
</ul>
<p>
The AMARAP is in charge of the peaceful use of nuclear energy and protection against harmful ionising radiation.</p>
<ul>
<li>
<b>Rural Energy Fund (REF)</b></li>
</ul>
<p>
Mali&rsquo;s rural electrification fund was created in 2000. The fund provides financial support, amongst others, for (i) feasibility studies of rural electrification projects; (ii) subsidies to the upfront investment costs of rural electrification projects; (iii) provide guarantees for rural electrification schemes; and (iv) promotes the country&rsquo;s rural electrification agenda through pilot projects, communication and awareness raising campaigns.</p>
<ul>
<li>
<b>National Agency of Renewable Energies (ANAER)</b></li>
</ul>
<p>
The ANAER was initially created in 2011, to ensure the promotion and widespread use of renewable energy, and enable sustainable socio-economic development in harmony with the renewable energy sector, whilst respecting the environmental impacts of development.</p>

Energy planning procedures: 

<ul>
<li>
<b>SREP-Mali Investment Plan. </b></li>
</ul>
<p>
Mali has been selected as one of the six countries to benefit from the Scaling-Up Renewable Energy Program in Low Income Countries (SREP), financed by the Climate Investsment Funds. The programme will act as a catalyst for the transformation of the renewable energy market by obtaining support from the Government of Mali (GoM) for market creation, private sector implementation, and productive energy use. The plan proposes three projects to expand Mali&#39;s solar photovoltaic, mini-hydro, and bio-fuel technologies, with important provisions for capacity building and project management critical to the success of the program itself and the long-term transformation of Mali&#39;s renewable energy sector.<br />
<br />
The rationale of this choice is, on one hand, the nature and scope of the climatic, environmental, demographic and energetic problems that Mali faces, and, on the other hand, the significant efforts already made by its goverment to meet key energy challenges. The SREP Expert Group&rsquo;s report highlights in particular: (i) a low rural access to electricity; (ii) a sound institutional base for solar photovoltaic (PV) implementation; (iii) a positive track record in developments to date; (iv) a potential for productive use of energy in agriculture and small commercial entities; and (v) sustainable biomass and biodiesel programs in place.<br />
<br />
The SREP Mali Investment Plan (IP) has been prepared under the leadership of the GoM, represented by the Ministry of Energy and Water, and by different specialized national agencies. It is therefore a country-led program, in line with key strategies of the national energy sector, as well as with the main principles of its Growth and Poverty Reduction Strategy and the National Climate Change Strategy. It proposes a coherent programmatic approach for transformational changes and promotes both public and private sector operations to remove barriers that might otherwise prevent scaled-up investments.</p>
<ul>
<li>
<b>Mali Energy Support Project</b></li>
</ul>
<p>
With the assistance of the World Bank, the Mali Energy Support Project is a USD 120 million, five-year (2009-2014) project with three components: (1) transmission and distribution reinforcement and extension ($107m); (2) energy efficiency and demand-side management through efficient lighting in residential, streetlights, and public facilities ($5m); and (3) capacity and institutional strengthening for key sector institutions (EDM, MEE, CREE; $8m).</p>
<ul>
<li>
<b>Household Energy and Universal Rural Access (HEURA) Project</b></li>
</ul>
<p>
Also supported by the World Bank, the HEURA Project for Mali (2003-2012, USD 70m) assists the GoM&rsquo;s efforts to increase the access of isolated low income populations to basic energy services. The project has the following components: 1) Capacity development and institutional strengthening (~ USD5m; for CREE, National Directorate of Energy, National Directorate of Nature Conservation, and AMADER); 2) Energy services delivery (~ USD60m; including rural electrification through the Rural Electrification Fund, multi-functional platforms, and information, education, and communication); and 3) household energy (~ USD5m; through community-based woodlot management; inter-fuel substitution and household energy efficiency; and information, education, and communication).<br />
<br />
Mali has started to exploit its hydroelectric potential, based on the Senegal and Niger River systems, which is estimated at about 1,500 MW and capable of producing 5,000 GWh per year on average. Of this potential, about 250 MW have been developed so far: Selingu&eacute; and Sotuba dams on the Niger River, Manantali dam on the Senegal River (whose output is shared with Senegal and Mauritania). Also on the Senegal River, the F&eacute;lou hydro power plant is under construction and will bring about 135GWh of additional generation for Mali. In addition, in order to meet peak demand, Mali has invested in two medium sized thermal generation projects (HFO plants) for a total of 90 MW. Malian grid is already regionally interconnected to Mauritania and Senegal. An interconnection with Cote d&rsquo;Ivoire is under construction. Increased regional integration could lower the cost of power in the medium term and allow Mali to purchase power from Cote d&rsquo;Ivoire (hydro and gas-fired) and Senegal (coal-fired power plant).<br />
<br />
In terms of renewable installations in the country, other than hydropower, rural electrification and energy services have been provided through a number of methods. Approximately 700 photovoltaic (PV) systems for water pumping have been installed in rural villages, and a further 750 kW of PV capacity is utilised by the telecommunications industry. Solar drying is also popular in the country, with hundreds of units having been installed.<br />
<br />
The Kimparana Electrification Project has been recently implemented by the Yeleen Kura company, a joint venture between EDF of France and NUON of the Netherlands. From 2006 onwards, the locality has benefited from a PV/diesel hybrid system. Production facilities consist of 72 kW of photovoltaic panels, with a 100 kVA diesel generator. The distribution grid covers approximately 7 km. Annual electricity generation is in the region of 145 MWh. Total project costs were US$ 1.057 million, financed in part by the company, and in part by AMADER.</p>

Energy regulator Date of creation: 

<p>
The Electricity and Water Regulatory Commission (CREE), created in 2000, regulates the electricity and water sector, while off-grid energy service providers, with generation systems below 250 kW, are regulated by the Agency for the Development of Household Energy and Rural Electrification (AMADER).</p>

Degree of independence: 

<p>
The CREE is independent from government operators. It has juridical powers and financial autonomy, although the organisation is under the supervision of the Prime Minister&rsquo;s Office.</p>

Regulatory framework for sustainable energy: 

<p>
Mali does not have a structured renewable energy market. The renewable energy (RE) sub-sector still operates mainly on an informal basis. However, Mali has always had a proactive policy with regard to RE, which was affirmed by the creation of the &ldquo;Laboratory of Solar Energy&rdquo; in 1964. More recently, a national strategy for the development of RE was created and adopted in January 2006. The integration of RE in the energy policy of Mali was established through institutional, legislative and regulatory measures:</p>
<ul>
<li>
In the field of decentralised electrification, the Frame of Reference for the Development of Rural Electrification (CdR-ER) is an inventory of the major principles which will guide the creation of regulation for the rural electrification sector.</li>
<li>
From a fiscal point of view, the willingness to promote RE is expressed by the government&rsquo;s renunciation to certain taxes through the Decree 02-026/P-RM of January 30, 2002, stating suspension of the collection of VAT, import duties and taxes on solar and RE equipment .</li>
<li>
Order 04-1360/MEF-SG of July 12, 2004, defines the tax and customs system applicable to the markets and contracts fulfilled under the responsibility of the AMADER.</li>
</ul>

Regulatory roles: 

<p>
The CREE is in charge of regulation of the sector of electricity and potable water. More specifically, the CREE ensures the application of tariff policies and regulates public services for electricity in urban areas. Furthermore, it is in charge of the development of public services, consumer protection, quality management and the approval and control of tariffs.<br />
<br />
The Regulatory Commission for Electricity and Water (CREE) lacks expertise in regulation among staff.&nbsp; As the energy sector undergoes restructuring, it is possible that in the future CREE will have increased regulatory authority and will require significant capacity building. CREE is currently not involved in a wide range of issues that are typically in the regulatory domain, including renewable energy development and energy efficiency. Effective engagement on these issues will require institutional capacity building efforts.</p>

Role of government department in energy regulation: 

<p>
The Ministry of Energy, Mines and Water (MEMW) is responsible for overseeing the expansion of electricity and water services in the country. With the recent reforms of 1998-2000, the role of the government in energy regulation was greatly streamlined, and transferred to primarily a monitoring role, with little direct involvement.</p>

Regulatory barriers: 

<p>
There are a number of major constraints to achieve renewable energy (RE) development in the country:</p>
<ul>
<li>
Institutional: Coordination among proliferating agencies concerned with renewable energy development; weak planning processes; incomplete framework for public-private partnerships, in particular for utility scale independent power projects.</li>
<li>
Economic and financial: Weak domestic financial institutions; high up-front cost of renewable energy technology; inadequate financial incentives to attract the private sector; weak canalization of finance from international sources for larger scale RE development.</li>
<li>
Technical: Limited capacity of human resources in the sector. Limited studies and impact assessments on RE sources for electricity generation, which do not yet create adequate conditions for a robust, standardized and programmatic approach to RE development.</li>
<li>
Social: Inadequate provision of information and awareness of consumers on renewable energy opportunities and challenges. Poverty of Malian rural households leads to difficult affordability, access and use of modern RE sources without subsidy schemes.</li>
</ul>

References: 

AfDB (2010). Mali Energy Conservation Development Strategy. Available at <a href="http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operati...(2).pdf">http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operati...(2).pdf</a> [Accessed 6th September 2013]<br />
<br />
Briceno-Garmendia, Cecilia et al (2011): Mali&rsquo;s Infrastructure: A Continental Perspective. Available at <a href="http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2011/06/17... [Accessed 6th September 2013]<br />
<br />
USAID. 2010. USAID/Mali Energy Assessment. Available at <a href="http://transition.usaid.gov/ml/documents/SuccessStories/AEG/Resources/Ma... 6th September 2013]<br />
<br />
Ministry of Energy and Water (2011): SREP Mali &ndash; Investment Plan: Scaling Up Renewable Energy. Available at <a href="http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operati...(2).pdf">http://www.afdb.org/fileadmin/uploads/afdb/Documents/Project-and-Operati...(2).pdf</a>&nbsp;[Accessed 6th September 2013]<br />
<br />
Toure, M. (2011) Successful Case of Solar Electrification in Mali, Available at: <a href="http://www.naruc.org/International/Documents/15%20MALI-%20Toure%20and%20... 6th September 2013]<br />
<br />
GTZ (2009) &#39;Mali&#39; in Renewable Energies in West Africa, Avilable at: <a href="http://www.giz.de/Themen/en/dokumente/gtz2009-en-regionalreport-westafri... 6th September 2013]