Africa > West Africa > Togo > Togo Energy Profile

Togo: Togo Energy Profile

2015/10/06

Lomé Thermal Power Plant: Tripling energy production in one of Africa ...globserver

 

Togo, officially the Togolese Republic, is a country in West Africa bordered by Ghana to the west, Benin to the east and Burkina Faso to the north. It extends south to the Gulf of Guinea, where the capital Lomé is located. Togo covers an area of approximately 57,000 square kilometres with a people of approximately 6.7 million.

Togo is a tropical, sub-Saharan country, highly dependent on agriculture, with a climate that provides good growing seasons. Togo is one of the smallest nations in all of Africa. The official language is French, with a lot of other languages spoken in Togo, particularly those of the Gbe family. The major religious group in Togo are those with indigenous beliefs, and there are significant Christian and Muslim minorities. Togo is a member of the United Nations, African Union, Organisation of Islamic Cooperation, South Atlantic Peace and Cooperation Zone, La Francophonie and Economic Community of West African States.

From the 11th to the 16th century, various tribes entered the region from all directions. From the 16th century to the 18th century, the coastal region was a major trading centre for Europeans in search of slaves, earning Togo and the surrounding region the name "The Slave Coast". In 1884, Germany declared Togoland a protectorate. Next World War I, policy over Togo was transferred to France. Togo gained its independence from France in 1960. In 1967, Gnassingbé Eyadéma led a successful military coup, next which he became president. At the time of his death in 2005, Eyadéma was the longest-serving leader in modern African history, next having been president for 38 years. In 2005, his son Faure Gnassingbé was elected president.

Energy sources

Total installed electricity capacity (2008): 85 MW
Hydroelectric: 78.8%
Thermal: 21.2%
 
Total primary energy supply (2008): 2,563 ktoe
Comb. Renew. And Waste: 83.1%
Petroleum Products: 14.3%
Electricity Imports: 2.2%
Hydro-electric: 0.4%
 
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.
 
In 2008, in general 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 major electricity producer operates several gas turbines, with an in general production of approximately 53 GWh (as of 2006). The in general contribution of small producers (mostly self-sufficient electricity generation in the industry sector) was estimated at 8 GWh in 2006.

Reliance

Togo does not produce any petroleum products and therefore has to meet consumption through imports. In 2008, the in general 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. In general electricity imports were estimated at 666 GWh in 2008, with a total consumption of 637 GWh.

Extend network

In Togo, only 20% of the people had access to electricity in 2009, lagging not only behind Sub-Saharan Africa in general, at 25%, but as well 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's electricity needs through interconnection of the nations' national grids. Interconnections by presently exist with a number of the country’s immediate neighbours, inclunding Benin, Cote d'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

The Togolese energy sector has a heavy reliance on imported fuel oil and electricity, an increasing gap between request 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 request. 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%.
 
The low % of connectivity reflects limited distribution investments. Tariffs are on average 15 US-cents /kWh, and do not reflect the cost of generation.
 
Togo’s electricity supply is mainly obtained from Ghana and Nigeria. Due to low water levels in Ghana’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’s distribution network has deteriorated from lack of maintenance and investment , leading to severe voltage drops, high technical losses, and use of unsecured equipment.
 
The political and social crisis has limited the national utility's ability to mobilise the necessary financing to meet growing electricity request, and to properly maintain the distribution network.

Renewable energy

Solar energy
The available solar radiation is between 4.4 and 4.5 kWh/m²/day. Up to presently, there have by presently 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.
 
Wind energy
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.
 
Biomass energy
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 presently, although the country offers a significant resource for the development of this technology.
 
Geothermal energy
Currently, there is no utilisation of geothermal energy in Togo, nor has any resource assessment into the potential for power generation been conducted.
 
Hydropower
Togo has additional 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 in general production capacity of 224 MW. Up to presently however, there are very few hydropower installations available for electricity generation.

Energy efficiency

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

Ownership

Electricity market
In Togo, electricity is supplied by two companies: the Togolese Electricity Company (CEET, www.ceet.tg), 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).
 
Liquid fuels market
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 instantly active in the distribution sector: Shell, Texaco, Mobil and Total. Each company in turn imports the equivalent of two months' 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 Lomé (STSL).

Competition

The CEET buys electricity from the CEB and as well generates its own electricity from diesel-powered thermal stations (which exist throughout Togo), and the Kpimé dam. The phosphate company International Fertilizer Group (IFG-Togo) and the WACEM cement plant are two of the CEB'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%).
 
The new draft Benin-Togo Electricity Code of 2001, ratified in March 2006, reaffirms the CEB's status as sole buyer and its import and transport monopoly for voltage exceeding 61 kV. The Code does however, mention the possibility of allowing independent operators to run new production units.
 
The CEB is a public utility, owned all by the governments of Togo and Benin, with integrated generation and transmission activities. Distribution in Togo is the responsibility of CEET, the national-owned, sole market actor in the distribution and sale sectors.
 
In 2009, the government signed a performance arrangement 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.

Energy framework

In Togo, there are currently no dedicated policies for renewable energies. According to the Togo Poverty Reduction Strategy Paper - Interim (PRSP-I) for 2006–2008 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 as well formulated, inclunding 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 before-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.
 
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, inclunding 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, inclunding extensions to the interconnected network of the two nations. 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.

Energy debates

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 initial priority concerns institutional reforms and the regulation of the energy sector, and schedules three actions:
 
(i) the strategic review and elaboration of reviewed energy policies,
 
(ii) regulation and reduction of national electricity consumption, by introducing energy-saving/efficiency measures in public buildings, in accordance with the Clean Development Mechanism (CDM), and
 
(iii) capacity building by the general department of energy.
 
The second priority focuses on the rapid development 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.
 
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.
 
Recent developments could endanger the next financial viability of Togo’s energy sector, in particular the national distribution utility’s commitment to a take-or-pay arrangement 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 Wärtsilä is set to produce an estimated 780 GWh/year for the country, but concerns have been raised over the high costs of the project.

Energy studies

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 statement of studies and data sessions related to electricity production and transmission in the region. It as well manages the financing and implementation of the projects identified as a result of its analyses.
 
Part the priorities of the WAPP is the NigeriaBeninTogoGhana – Ivory Coast interconnection. The interconnection will allow other nations in the ECOWAS, who fall short of their request, 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.

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 in general 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. A lot of other institutions and organisations from both the private and public sectors as well participate in the in general management of the energy sector. This includes CEB, CEET and the Regulation Authority of the Electricity Sector (ARSE), inclunding 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

Whilst no dedicated government agency in sustainable energy exists in the country, international organisations have before engaged in the country’s sustainable energy sector. These include the Jeunes Volontaires pour l’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 as well 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 procedure

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 request for its output. However, new investments are needed in terms of expanding the current distribution network and improving its quality. Conflicts in responsibility part the ministries responsible for energy policy formulation in Togo has hindered optimal evolution in energy co-ordination and harnessing. Clear delineation of responsibilities in managing and developing energy resources would lead to additional efficient and effective energy utilisation.
 
DeltaWind Togo
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 by presently has access to a 161 kV transmission line, improving its feasibility. Construction is expected to commence in the initial quarter of 2012, with commissioning expected to occur in the third quarter of 2012.
 
CG Togo
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 Lomé. The project will be the initial substantial foreign investment in Togo in over a decade, and will be one of the majority 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.
 
Emergency Infrastructure Rehabilitation and Energy Project (2009-2013)
Approved by the World Bank in 2009, at a cost of US$5 million co-financed by the International Development Organisation (IDA) and World Environmental Facility (GEF), the Electricity Distribution System Rehabilitation component of the project has several objectives:
  • The IDA funded all will be used for rehabilitation of the electric distribution network of Lomé through:
(i) rehabilitation of 20 medium voltage (MV) or low voltage (LV) transformers, inclunding the replacement of selected small transformers by higher capacity transformers;
(ii) rehabilitation of the network distribution, inclunding the construction of new MV substations, and the reconstruction of selected LV substations to support acceptable capacity levels; and
(iii) the installation of fault passage indicators on the electric distribution network.
  • The GEF funded all will be used for improving the energy efficiency of the electric distribution system, through:
(i) installation of at least 400,000 Compact Fluorescent Lamps (CFLs), replacing incandescent light bulbs in use;
(ii) the carrying out of public data and awareness campaigns to promote a culture of energy efficiency, and
(iii) the implementation of a normative framework and quality control system in the national market of CFL distribution.

Energy regulator

The Regulation Authority of the Electricity Sector (Autorité de Réglementation du Secteur de l’Electricité, ARSE, http://www.arse.tg/beta/) was created by article 9 of the law N° 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 national and those that are in charge in the private and public sectors. The Authority is financially autonomous from the national. 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

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

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

Energy regulation role

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 presently, 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 in general evolution 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.