Togo (2012)

Degree of reliance on imported energy: 

Togo does not produce any petroleum products and therefore has to meet consumption through imports. In 2008, the overall import was estimated at 328 ktoe, equalling 14.3% of the total energy mix. Additional imports of electricity originated from Ghana, the Ivory Coast and Nigeria. Overall electricity imports were estimated at 666 GWh in 2008, with a total consumption of 637 GWh.

Main sources of Energy: 

<div>
Total installed electricity capacity (2008): 85 MW</div>
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Hydroelectric: 78.8%</div>
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Thermal: 21.2%</div>
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Total primary energy supply (2008): 2,563 ktoe</div>
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Comb. Renew. And Waste: 83.1%</div>
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Petroleum Products: 14.3%</div>
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Electricity Imports: 2.2%</div>
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Hydro-electric: 0.4%</div>
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Togo mainly relies on the utilisation of energy from biomass. Due to the fact that Togo has no proven petroleum reserves, the total consumption of petroleum products is covered by imports.&nbsp;</div>
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In 2008, overall electricity production was 123 GWh, nearly three-quarters of which was from hydropower (91 GWh), with the remainder being supplied by petroleum products. The second main electricity producer operates several gas turbines, with an overall production of approximately 53 GWh (as of 2006). The overall contribution of small producers (mostly self-sufficient electricity generation in the industry sector) was estimated at 8 GWh in 2006.</div>

Country: 

Togo

Extent of the network: 

In Togo, only 20% of the population had access to electricity in 2009, lagging not only behind Sub-Saharan Africa in general, at 25%, but also behind its neighbours Ghana (60%) and Benin (24.1%). Due to frequent inadequacies in the domestic power grid, Ghana supplies a large proportion of Togo&#39;s electricity needs through interconnection of the countries&#39; national grids. Interconnections already exist with a number of the country&rsquo;s immediate neighbours, including Benin, Cote d&#39;Ivoire and Burkina Faso. Transmission in the country primarily runs north-south, at 161 kV. The Northern interconnection with Ghana and Burkina Faso, running from Dapaong, is not currently connected to the rest of the high-voltage network, whose northernmost point reaches Djamde. Distribution in the country is predominantly at 33 or 20 kV.

Capacity concerns: 

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The Togolese energy sector has a heavy reliance on imported fuel oil and electricity, an increasing gap between demand and supply, a lack of reliability of the grid and poor performance of equipment and appliances used by consumers. The peak load is currently at 100 MW, while the base-load is between 50 and 60 MW. By comparison, power availability in the dry season in 2007 was roughly 40 MW, leading to a high level of unsatisfied demand. Imports accounted for 84% of the total electricity supply in 2008, with nearly a quarter of domestic generation capacity relying on fuel oil imports. Transmission and distribution losses in 2008 were 19.1%.</div>
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The low percentage of connectivity reflects limited distribution investments. Tariffs are on average &nbsp;15 US-cents /kWh, and do not reflect the cost of generation.&nbsp;</div>
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Togo&rsquo;s electricity supply is mainly obtained from Ghana and Nigeria. Due to low water levels in Ghana&rsquo;s Volta Lake, which feeds the Akosombo Hydropower Plant, distribution to Togo was curtailed for up to 16 hours per day. As a result, the supply of electricity to households and businesses in Togo has been constrained. At the same time, Togo&rsquo;s distribution network has deteriorated from lack of maintenance and investment, leading to severe voltage drops, high technical losses, and use of unsecured equipment.</div>
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The political and social crisis has limited the national utility&#39;s ability to mobilise the necessary financing to meet growing electricity demand, and to properly maintain the distribution network.</div>

Potential for Renewable Energy: 

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<u>Solar energy</u></div>
<div>
The available solar radiation is between 4.4 and 4.5 kWh/m&sup2;/day. Up to now, there have already been some experiences with thermal solar energy and photovoltaic (PV) energy. This includes solar water heating, solar cooking and PV systems for telecommunication services, water pumping, railway stations and some other small scale applications. In order to improve the access to modern energy services in rural areas of Togo, there is still a significant need to promote the utilisation of solar energy. Some non-profit organisations are active in the solar energy field in Togo, promoting the indigenous production of photovoltaic cells; however, the projects are currently operating on a limited scale.</div>
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<u>Wind energy</u></div>
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Togo, just like its neighbour Ghana, has considerable wind potential, which is so far not being exploited. Numerous sites have been identified in the country as having average wind speeds in excess of 5 m/s, indicating a good potential for the exploitation of wind energy in the country, particularly in coastal areas. Wind utilisation in the country so far is limited to use as an alternative, decentralised energy source for rural communities.</div>
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<u>Biomass energy</u></div>
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The biomass potential of Togo is estimated at 2.6 million toe, and mainly consists of wood, charcoal, and vegetable waste. With regard to the production and utilisation of biogas, there are significant resources available, mainly from agricultural waste (cotton, maize stem etc.) and livestock. Due to the lack of technology and capacity, and the proportionally high cost of family-scale biogas installations, there are no existing biogas production sites in Togo up to now, although the country offers a significant resource for the development of this technology.</div>
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<u>Geothermal energy</u></div>
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Currently, there is no utilisation of geothermal energy in Togo, nor has any resource assessment into the potential for power generation been conducted.&nbsp;</div>
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<u>Hydropower</u></div>
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Togo has more than 50 rivers and waterfalls that offer abundant potential for mini- and micro-hydropower for the production of electricity. About 40 sites, located on the rivers of Mono and Oti, offer a potential overall production capacity of 224 MW. Up to now however, there are very few hydropower installations available for electricity generation.</div>

Potential for Energy Efficiency: 

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Togo&rsquo;s energy consumption is characterised as follows:</div>
<ul>
<li>
80% of the peak demand for electricity, and the majority of total consumption, occurs in Togo&rsquo;s capital city, Lome, and its surroundings.</li>
<li>
The household sector accounts for 54% of the country&rsquo;s total electricity consumption followed by the industrial sector and the institutional sector which account for 31% and 15% respectively. The daily peak demand occurs between 18:00 and 22:00 when household energy need is high. Most of this demand is from lighting. In terms of total final energy consumption, the residential sector contributes the most, with 79% of total final demand coming from the sector. This includes 87.5% of the country&rsquo;s biomass supply. The transport sector holds the next largest share, with 18.9%.</li>
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Most light bulbs used by households are incandescent, leading to a significant gap between peak load and base load. Efficient bulbs, when available, are of low quality, and cannot withstand the high voltage fluctuations to which the Togolese grid is subject.</li>
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The lighting market is not structured, and products and brands are imported from various countries.</li>
</ul>
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The overall energy consumption per inhabitant was estimated at 0.27 toe in 2006, which is significantly less than the average of West African countries (0.45 toe).</div>

Ownership: 

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<strong>Electricity market</strong></div>
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In Togo, electricity is supplied by two companies: the Togolese Electricity Company (CEET, <a href="http://www.ceet.tg">www.ceet.tg</a>), which has held a monopoly on electricity distribution and sale in Togo since 22 February 2006, following termination of the concession agreement with the former utility Togo Electricity; and the Benin Electricity Community (CEB), a jointly-operated public entity set up under an international agreement and the 1968 Benin-Togo Electricity Code, which has the virtual monopoly of production (except low voltage generation) and high voltage transmission of electricity in Benin and Togo. In addition to these two companies, there are industrial and individual independent producers who produce their own supplies using generators, (for example, the NIOTO agri-food company which meets its own energy needs using cotton waste).</div>
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<strong>Liquid fuels market</strong></div>
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No petroleum or natural gas deposits are currently exploited in Togo, and these products are imported for consumption. The Ministry of Commerce and Industry issues import permits and all petroleum imports require certification from the Ministry. Four companies are presently active in the distribution sector: Shell, Texaco, Mobil and Total. Each company in turn imports the equivalent of two months&#39; consumption. During each two-month period, the other companies obtain supplies from the importing company to supply their distribution networks. Three other privately owned companies, SUN-AGIP, CAP and OANDO, are authorized to distribute petroleum products. Petroleum product storage is handled by the Togo Storage Company (STE) and the Togo Storage Company of Lom&eacute; (STSL).</div>

Structure / extent of competition: 

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The CEET buys electricity from the CEB and also generates its own electricity from diesel-powered thermal stations (which exist throughout Togo), and the Kpim&eacute; dam. The phosphate company International Fertilizer Group (IFG-Togo) and the WACEM cement plant are two of the CEB&#39;s five customers. The electricity currently supplied to the markets in Benin and Togo by the CEB comes both from imports of energy produced in the Ivory Coast and Ghana (70%), and from domestic production (30%).</div>
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The latest draft Benin-Togo Electricity Code of 2001, ratified in March 2006, reaffirms the CEB&#39;s status as sole buyer and its import and transport monopoly for voltage exceeding 61 kV. &nbsp;The Code does however, mention the possibility of allowing independent operators to run new production units.</div>
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The CEB is a public utility, owned wholly by the governments of Togo and Benin, with integrated generation and transmission activities. Distribution in Togo is the responsibility of CEET, the state-owned, sole market actor in the distribution and sale sectors.</div>
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In 2009, the government signed a performance contract for five years with CEET, establishing objectives for the delivery of public service for the company. In addition, a regulatory review is underway, pertaining to the distribution sector in the country in order to create technical regulations for the sector.</div>
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Existence of an energy framework and programmes to promote sustainable energy: 

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In Togo, there are currently no dedicated policies for renewable energies. According to the Togo Poverty Reduction Strategy Paper - Interim (PRSP-I) for 2006&ndash;2008 however, the government has pursued several objectives in the energy sector. These include the implementation of policies for the promotion of RE, the increase of electricity supply for rural areas and the implementation of regulatory institutions. Under the PRSP-I, a number of priorities were also formulated, including institutional reform of the energy sector and a rapid development of production capacity to alleviate energy shortages; the creation of a framework for the development and financing of rural electrification and expansion of the previously-implemented Rural Electrification Master Plan; and the implementation of legislative and regulatory frameworks for the substitution of traditional energy use with renewable energy use. Currently, an ongoing study into the electric power sub-sector in the country is being performed by the SOFRECO-IIC group, and a consultant firm is being selected for the elaboration of policy documents in the energy sector.</div>
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Various programs are in the implementation stage in the country, pertaining to improving the energy security of Togo and promoting new and renewable energies. The International Finance Corporation (IFC), a World Bank Group member, is collaborating with NGOs in the country to improve the condition of power generation capacities, as well as implement new generation solutions. The EU-Africa Infrastructure Trust Fund (ITF) is supporting the CEB with financing for the rehabilitation of transmission and distribution networks in Benin and Togo, as well as extensions to the interconnected network of the two countries. In addition, private firms from Europe have expressed interest in promoting the production of ethanol as a fuel source in the country, and feasibility studies are being conducted.</div>

Current energy debates or legislation: 

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Based on a feasibility study on rural electrification, the implementation of a rural electrification master plan was initiated. In the framework of the Priorities Actions Interim Program (PAIP) and the PRSP-I, several priorities were formulated. The first priority concerns institutional reforms and the regulation of the energy sector, and schedules three actions:&nbsp;</div>
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(i) the strategic review and elaboration of reviewed energy policies,&nbsp;</div>
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(ii) regulation and reduction of state electricity consumption, by introducing energy-saving/efficiency measures in public buildings, in accordance with the Clean Development Mechanism (CDM), and&nbsp;</div>
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(iii) capacity building by the general department of energy.</div>
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The second priority focuses on the rapid improvement of production capacities to end the energy crisis in the shortest time. Furthermore, capacity building in the electricity sector aims to promote gas turbines and hydropower installations in different regions of the country. The third priority proposes a framework for rural electrification and prepares an investment program to alleviate the high energy dependency of Togo.&nbsp;</div>
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The fourth priority aims at activities in the field of RE and the hydrocarbon sector. This includes the implementation of legislative, institutional and regulatory framework conditions, allowing the substitution of traditional energy sources. This should be done with tax exemptions for RE equipment, the definition of standards for rural electrification, and the reduction of relevant costs.</div>
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Recent developments could endanger the future financial viability of Togo&rsquo;s energy sector, in particular the national distribution utility&rsquo;s commitment to a take-or-pay contract for 100 MW of power with an Independent Power Producer (IPP), which will start operation in 2010. The agreement with US-based ContourGlobal and Finland-based W&auml;rtsil&auml; is set to produce an estimated 780 GWh/year for the country, but concerns have been raised over the high costs of the project.</div>

Major energy studies: 

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Togo is member of the West African Power Pool (WAPP) which works under the auspices of the Economic Community of West African States (ECOWAS), and is charged with managing the cooperation of the national electric utilities of the Member States by designing the framework of cooperation, regulating the power pooling, and determining the level of participation of each utility. The WAPP oversees the execution and report of studies and information sessions related to electricity production and transmission in the region. It also manages the financing and implementation of the projects identified as a result of its analyses.&nbsp;</div>
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Among the priorities of the WAPP is the Nigeria &ndash; Benin &ndash; Togo &ndash; Ghana &ndash; Ivory Coast interconnection. The interconnection will allow other countries in the ECOWAS, who fall short of their demand, to access the energy grids of those with surplus generation capacity. Planned extension to the WAPP power network includes a 330 kV line from Sakete in Benin to Volta in Ghana, connecting major production centres in Nigeria to the rest of the high-voltage network.</div>

Role of government: 

The energy sector of Togo is very complex, due to numerous institutions involved in the sector. The Ministry of Mines, Energy and Hydraulic Resources develops and implements policies for the overall energy sector. Moreover, it directs and coordinates relevant initiatives. The Ministry of Environmental and Forestry Resources develops and implements policies and regulations, monitors and controls the exploitation of forests and the production and supply of wood and charcoal. Many other institutions and organisations from both the private and public sectors also participate in the overall management of the energy sector. This includes CEB, CEET and the Regulation Authority of the Electricity Sector (ARSE), as well as the hydrocarbon storage companies; STE, and STSL. Responsibility for the approval and modification of structures and tariffs for electricity service lies with the Ministry of Mines, Energy and Hydraulic Resources.

Government agencies in sustainable energy: 

Whilst no dedicated government agency in sustainable energy exists in the country, international organisations have previously engaged in the country&rsquo;s sustainable energy sector. These include the Jeunes Volontaires pour l&rsquo;Environnement (JVE, Youth Volunteers for the Environment), an organisation which is committed to promoting sustainability and environmentally-conscious development in the country. Activities undertaken by the organisation include the building of capacity for solar cooking in the region through workshops. BISZ, a Belgian non-profit organisation, is also active in the country, conducting the Solar Without Borders program, aiming to install photovoltaic modules in communal and public buildings, and promote the development of indigenous solar markets.

Energy planning procedures: 

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The electricity sector experienced a significant increase in production in 2009 compared with previous years. To reduce the need for government subsidies, CEET, in collaboration with the CEB, is committed to negotiating export contracts to ensure that there is sufficient demand for its output. However, new investments are needed in terms of expanding the current distribution network and improving its quality. Conflicts in responsibility among the ministries responsible for energy policy formulation in Togo has hindered optimal progress in energy co-ordination and harnessing. Clear delineation of responsibilities in managing and developing energy resources would lead to more efficient and effective energy utilisation.&nbsp;</div>
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<strong>DeltaWind Togo</strong></div>
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DeltaWind Togo are currently finalising a concession agreement for 24 MW of wind power capacity to be installed in the capital, Lome. Initial assessments have identified wind speeds at the proposed site, on the north-east outskirts of the city, at 6.5 m/s at 40 metres. Currently, a 70 metre assessment mast is being installed for further investigations. The site already has access to a 161 kV transmission line, improving its feasibility. Construction is expected to commence in the first quarter of 2012, with commissioning expected to occur in the third quarter of 2012.</div>
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<strong>CG Togo</strong></div>
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ContourGlobal Togo S.A. is the local subsidiary of ContourGlobal, which develops and operates electric power and district heating businesses around the world. CG Togo has entered into a 25-year concession and power purchase agreement to develop, construct and operate a 100 MW thermal power plant on a brown-field site in Lom&eacute;. The project will be the first substantial foreign investment in Togo in over a decade, and will be one of the most significant investments in the West African power sector in over 20 years. CG Togo will be capable of producing up to ~780 GWh of electricity per annum, which it will sell to CEET. Construction began in May 2009 and the plant became fully operational in April 2010.</div>
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Emergency Infrastructure Rehabilitation and Energy Project (2009-2013)</div>
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Approved by the World Bank in 2009, at a cost of US$5 million co-financed by the International Development Organisation (IDA) and Global Environmental Facility (GEF), the Electricity Distribution System Rehabilitation component of the project has several objectives:</div>
<ul>
<li>
The IDA funded amount will be used for rehabilitation of the electric distribution network of Lom&eacute; through:&nbsp;</li>
</ul>
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(i) rehabilitation of 20 medium voltage (MV) or low voltage (LV) transformers, including the replacement of selected small transformers by higher capacity transformers;&nbsp;</div>
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(ii) rehabilitation of the network distribution, including the construction of new MV substations, and the reconstruction of selected LV substations to support acceptable capacity levels; and&nbsp;</div>
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(iii) the installation of fault passage indicators on the electric distribution network.&nbsp;</div>
<ul>
<li>
The GEF funded amount will be used for improving the energy efficiency of the electric distribution system, through:&nbsp;</li>
</ul>
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(i) installation of at least 400,000 Compact Fluorescent Lamps (CFLs), replacing incandescent light bulbs in use;&nbsp;</div>
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(ii) the carrying out of public information and awareness campaigns to promote a culture of energy efficiency, and&nbsp;</div>
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(iii) the implementation of a normative framework and quality control system in the national market of CFL distribution.</div>

Energy regulator Date of creation: 

The Regulation Authority of the Electricity Sector (Autorit&eacute; de R&eacute;glementation du Secteur de l&rsquo;Electricit&eacute;, ARSE, http://www.arse.tg/beta/) was created by article 9 of the law N&deg; 2000-012 of 18 July, 2000. It regulates the CEB, and deals with the transport and import/export of electrical energy for Benin and Togo. The law liberalised the production of electrical energy in Togo.

Degree of independence: 

The Authority is a private organisation in terms of authority and funding, but production and supply of electrical energy must be exploited within the framework of a public service mission. Therefore, production is subjected to the requirements of public service, and must be agreed by the state and those that are in charge in the private and public sectors. The Authority is financially autonomous from the state. The Executive Committee of the Authority is composed of three members, appointed by the Council of Ministers for a term of four years, renewable once. The President of the Executive Committee is the Chairman of the Regulatory Authority.

Regulatory framework for sustainable energy: 

No dedicated regulatory framework exists for sustainable energy in the country. Energy legislation is restricted to two laws governing the pricing and distribution of hydrocarbons in general, and petroleum products in particular, for the country (laws 1999-003 and 2002-029 respectively), and the law 2000-012 governing the electricity sector.

Regulatory roles: 

<div>
The ARSE is responsible for the regulation of all activities relating to the electricity sector, including:</div>
<ul>
<li>
The granting of concessions for the generation, transmission, distribution and sale of electricity,</li>
<li>
Regulation of the construction and maintenance of new and existing power infrastructure,</li>
<li>
The regulation of financing mechanisms for projects in the electricity sector, and the ensuring of their fairness.</li>
</ul>

Role of government department in energy regulation: 

Due to the dependence on traditional biomass fuels in the country, the Ministry of Environmental and Forest Resources, through its activities in the regulation of fuel-wood and charcoal supply, is acting as an energy regulator.

Regulatory barriers: 

The major obstacle within the RE market development is the lack of appropriate policies. Furthermore, there is a significant lack of regulatory instruments for private investments in the sector. Up to now, there are no mechanisms or incentives that are suitable to attract investors from the private sector. The regulatory institution ASCO has no master plan in the field of RE. In addition, Togo has no independent agency responsible for the RE sector, nor the numerous rural electrification applications of RE technologies. Through the action of numerous international organisations, some development of the RE sector has occurred in Togo, although overall progress continues to be hampered by a lack of ministerial co-ordination, and issues in the power sector in general, particularly in the rehabilitation of generation capacity and the transmission network.

References: 

IEA Country Energy Statistics 2009: <a href="http://www.iea.org/stats/countryresults.asp?COUNTRY_CODE=TG&amp;Submit=S... [Accessed 28 July 2013]<br />
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EIA (2011) International Energy Statistics. <a href="http://www.eia.gov/cfapps/ipdbproject/iedindex3.cfm?tid=2&amp;pid=2&amp;... 28 July 2013]<br />
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Wind Energy and Electric Vehicle Review: &quot;Renewable energy in Togo&quot;, 31st December 2011. <a href="http://www.evwind.es/noticias.php?id_not=15567">http://www.evwind.es/not... 28 July 2013]<br />
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WEO Electricity Access Database 2012. Available at: <a href="http://www.iea.org/media/weowebsite/energydevelopment/2012updates/WEO201... 28 July 2013]<br />
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Ayenagbo, K., Kimatu, J.N. and Rongcheng, W. (2011) &quot;A model for a sustainable energy supply strategy for the social-economic development of Togo&quot;, Journal of Economics and International Finance, Vol.3 (6), 387-398. Available at: <a href="http://www.academicjournals.org/jeif/PDF/pdf%202011/June/Ayenagbo%20et%2... 28 July 2013]<br />
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Solar Without Borders: <a href="http://www.solarzondergrenzen.be/en/about-us/solar-without-borders/?PHPS... 28 July 2013]<br />
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Global Alliance for Community Empowerment: &quot;Community projects&quot;. <a href="http://empowermentalliance.org/community-projects.php">http://empowermen... 28 July 2013]<br />
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GTZ (2009): &quot;Country chapter: Togo&quot;. <a href="http://www.giz.de/Themen/de/dokumente/gtz2009-en-regionalreport-wa-togo.... 28 July 2013]<br />
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Helio International: &quot;Benin&quot;. Available at: <a href="http://www.helio-international.org/VAR.Benin.En.pdf">http://www.helio-in... 28 July 2013]<br />
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EU-Africa Infrastructure Trust Fund: &quot;Benin-Togo Power Rehabilitation&quot;. <a href="http://www.eu-africa-infrastructure-tf.net/activities/grants/benin-togo-... 28 July 2013]<br />
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West African Power Pool: &quot;Power Grid&quot;. <a href="http://www.ecowapp.org/?page_id=12">http://www.ecowapp.org/?page_id=12</... 28 July 2013]<br />
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Afrol News: &quot;Togo electricity production to double&quot;. <a href="http://afrol.com/articles/29958">http://afrol.com/articles/29958</a>&nbs... 28 July 2013]<br />
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BISZ: <a href="http://www.vzwbisz.be/about/over-bisz/">http://www.vzwbisz.be/about/over... (translated with Google Translate)&nbsp;[Accessed 28 July 2013]<br />
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Authorite de Reglementation du Secteur de l&#39;Electricite: <a href="http://www.arse.tg/beta/?page=simple&amp;cat=ARSE&amp;idscat=4">http://w... (translated with Google Translate)&nbsp;[Accessed 28 July 2013]<br />
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NARUC (2011): &quot;Institutional and regulatory framework in the electricity sector in Togo: opportunities in renewable energy&quot;. Available at: <a href="http://www.naruc.org/International/Documents/5%20TOGO-%20RE%20Country%20... 28 July 2013]<br />