HomeMagazine ArticleIn depth: What’s on the horizon for West Africa

In depth: What’s on the horizon for West Africa

wapic-imageThe West African regional power industry is facing many challenges from insufficient domestic gas supply, ageing infrastructure, low revenue collection to a skills gap in the workforce.

It has been said that “doubters don’t overcome challenges, but innovators and entrepreneurs find lucrative opportunities and solutions”. Consequently, there are no shortages of companies, organisations and individuals working on amending financial frameworks, building IPPs, finding off-grid solutions and working to bridge the skills gap.

In the region, whilst Nigeria is the largest power market in terms of scale and size, there are interesting opportunities and best practices being implemented by its neighbours. For example, the West African Power Pool (WAPP) is driving a project to develop a 1,300 km (807 mile) interconnection line across Ivory Coast, Guinea, Liberia and Sierra Leone. A consortium of development agencies, including the World Bank, African Development Bank, European Investment Bank and German Export Bank, have agreed to provide €329 million (US$374.43 million) over 25 years for the project. This infrastructure will have the capacity to enhance power trading on a regional level.

Metering, billing and finance

To fund the infrastructure investments required throughout the power value chain, metering rollouts and billing technology will continue to be key areas amongst the distribution companies and utilities. However, the low rate of revenue collection and high rate of system losses is a key challenge. Alexander Osei, the General Manager for management information systems at the Electricity Company of Ghana (ECG), commented on the rollout of a Commercial Managing System, which unlike the existing Customer Billing and Information System; is customer oriented software that makes almost all activities on-line.

This includes, but is not limited to, new service connection (contracting) and customer payments. CMS also facilitates automatic monitoring processes, such as debt recovery. The CMS will increase the customer care service channel and improve customer time of response.

Furthermore, Dr Ransome Owan, the Group Managing Director at Aiteo Power Generation and Distribution Company, stated at last year’s West African Power Industry Convention (WAPIC) that the African lending banks need to develop new and innovative tools to bring liquidity to the sector. According to Owan “it takes far too long to reach financial close on power projects”. He also questioned whether it should be made easier to …

Click here to view the full article on our digital platform.