Cameroon: Cameroon Energy Profile
2012/02/27
Cameroon, officially the Republic of Cameroon, is a country in west Central Africa. It is bordered by Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south. Cameroon\'s coastline lies on the Bight of Bonny, part of the Gulf of Guinea and the Atlantic Ocean. The country is called \"Africa in miniature\" for its geological and cultural diversity.
Natural features include beaches, deserts, mountains, rainforests, and savannas. The highest point is Mount Cameroon in the southwest, and the major cities are Douala, Yaoundé, and Garoua. Cameroon is home to over 200 different linguistic groups. The country is well known for its native styles of music, particularly makossa and bikutsi, and for its successful national football team. English and French are the official languages. Early inhabitants of the territory included the Sao civilisation around Lake Chad and the Baka hunter-gatherers in the southeastern rainforest.
Portuguese explorers reached the coast in the 15th century and named the area Rio dos Camarões, the name from which Cameroon derives. Fulani soldiers founded the Adamawa Emirate in the north in the 19th century, and various ethnic groups of the west and northwest established powerful chiefdoms and fondoms. Cameroon became a German colony in 1884. Next World War I, the territory was divided between France and Britain as League of Nations mandates.
The Union des Populations du Cameroun political party advocated independence but was outlawed by France in the 1950s. It waged war on French and UPC militant forces until 1971. In 1960, the French administered part of Cameroon became independent as the Republic of Cameroun under President Ahmadou Ahidjo. The southern part of British Cameroons merged with it in 1961 to form the Federal Republic of Cameroon. The country was renamed the United Republic of Cameroon in 1972 and the Republic of Cameroon in 1984.
Compared to other African nations, Cameroon enjoys relatively high political and social stability. This has permitted the development of agriculture, roads, railways, and large petroleum and timber industries. Nevertheless, large numbers of Cameroonians live in poverty as subsistence farmers. Power lies firmly in the hands of the authoritarian president since 1982, Paul Biya, and his Cameroon People\'s Democratic Movement party. The English speaking territories of Cameroon have grown increasingly alienated from the government, and politicians from those regions have called for better decentralization and even the secession of the former British-governed territories.
Energy sources
Total installed electricity capacity (2010): 1448 MW (inclunding 476 MW from auto-producers).
As of 2011, 70 to 80 % of Cameroon’s power is derived from hydropower sources, with the remainder from conventional thermal.
Total primary energy supply (2009): 6,918 ktoe
Biofuels & waste: 64.1%
Oil: 27.2%
Natural Gas: 3.7%
Hydro-electric: 5.0%
Cameroon's energy balance shows a clear predominance of renewable energy (RE) sources particularly biomass. Despite the clear evolution made with commercial forms of energy between 1990 and 2002, biomass is still the predominant fuel source (78.6% in 2003), with cooking and other residential uses accounting for 73%.
Reliance
Although Cameroon is an oil producing country, the proportion of imported petroleum products in national consumption increased considerably between 1990 and 2000, with imports rising beyond the 56 % mark in 2000, before dropping again in 2003. Petroleum imports, which constitute the entirety of the country\\\'s energy imports, totalled 2,356 ktoe in 2007.
Extend network
Access to power has steadily improved in Cameroon. National access to electricity increased from 37% in 1996 to 46% in 2002, and to 48% in 2007, above the average for Africa’s resource-rich nations. Estimates of urban access suggest that between 65% and 88% of the urban people has access to electricity. At 88%, access to power in urban areas is better than in most low-, middle-, and resource-rich nations in Africa. But these positive trends do not extend to rural areas: only about 14% of rural dwellers benefit from access to electricity, half the level incomparable nations.
Electricity supply is unevenly distributed owing to the discontinuity of the national grid, which prevents the transfer of power part the three separate grids: the Northern Interconnected Grid (NIG), the Eastern Isolated Grid (EIG) and the Southern Interconnected Grid (SIG).
Capacity concerns
The key constraints facing the electricity sector relate to the narrow geographic space and relative obsolescence of the transmission and distribution networks. As a result, there is significant unmet solvent request. This situation is exacerbated by the fact that the country’s three major transmission grids are completely isolated from one an extra and no exchange of available surpluses can be made between the grids. Together with the Government, the Bank and other sector donors are all considering the best technical solution for interconnecting the three grids.
Renewable energy
Solar energy
Some significant solar energy resources are available throughout the country. In the majority suitable parts, the average solar irradiance is estimated at 5.8 kWh/day/ m2, while the rest of the country commonly sees 4.9kWh/day/ m2 . Solar power is currently used in distributed generation systems, particularly for powering the cellular telecommunications network. However, only approximately 50 PV installations currently exist.
Wind energy
Other renewable energy resources such as wind energy exist in the north of Cameroon and the littoral region. However, the wind speeds as reported by meteorological services are not sufficient for the development of wind energy projects.
Biomass energy
Cameroon as well has the third major biomass potential in sub-Saharan Africa, with 25 million hectares of forest covering three-quarters of its territory. However, the unsustainable use of this resource has led to significant deforestation throughout the country, with an annual clearance rate of 200,000 hectares/yr and regeneration of only 3,000 hectares/yr. Primary uses for biomass in the country include heating and light for the majority of the rural people.
Utilisation of palm oil for biodiesel is as well a viable prospect for the country. At present, around 108,000 hectares of land are affected by oil palm growing. However between 2001 and 2006 a total of 30,000 hectares of forest were cleared to allow for the expansion palm oil crop.
Geothermal energy
Hot springs are found in extensive areas: Ngaoundéré region, Mt Cameroon region and Manengoumba area with Lake Moundou. However this potential not been seriously examined.
Hydropower
Cameroon has the second major hydroelectric potential in sub-Saharan Africa. Total potential is estimated at 23 GW, with a production potential of 103 TWh per year. There are three major facilities in the country: EDEA (263 MW); Songloulou (388 MW) and Lagdo (72 MW).
The potential for small Hydro Power installations (up to 1 MW) is estimated at 1.115 TWh, mainly in the eastern and western regions of Cameroon, however this potential is from presently on to be properly exploited.
Energy efficiency
The residential sector in the country contributes most to primary energy request, totalling some 71%, inclunding 95% of the country's biomass consumption. Primary energy consumption per capita stands at 0.23 toe. Energy efficiency is not represented heavily in the national energy policy, and energy prices have been increasing steadily without efficiency improvements in infrastructure.
Ownership
Electricity market
In 2001, the national-owned, vertically integrated utility Société Nationale d\\\'Electricité (SONEL) was privatized, becoming AES Sonel (http://www.aessoneltoday.com/), and granted a 20-year monopoly over generation, transmission and distribution in the concession area, inclunding the right to own up to 1,000 MW of installed generation capacity. In 2006 the Electricity Development Corporation (EDC) was established as an investment holder.
Petroleum and natural gas market
Cameroon has committed to the privatisation of its national oil company, the National Hydrocarbons Company, SNH (www.snh.cm). SNH engages in exploration and production in conjunction with several Western oil companies. SNH is the national controlled oil producer and exploration company.
Competition
A regulatory agency, created in 2000, was meant to ensure that the privitatisation of the enrgy market led to the development of competition.. However, AES-SONEL was awarded exclusive management responsibilities for generation, transmission and distribution assets for 20 years. This entirely entailed the transfer of monopoly, and energy security, from the government to a foreign-owned company.
The vertically integrated power utility, AES-SONEL owns and operates the sole transmission system and distribution system, operating three distinct grids:
- The Southern Interconnected Grid (SIG) inclunding Douala and Yaoundé.
- The Northern Interconnected Grid (NIG) – three Northern provinces served by Lagdo hydroelectric plant and 14 MW thermal generation.
- The Eastern Isolated Grid (EIG) – 86 Small Thermal Units (24MW) support 31 small distribution systems.
All hydrocarbon rights are vested in the National, and the National reserves the right to acquire an interest in all or part of the petroleum operations.
Energy framework
The government’s policy seeks to get the country out of under-development, through the implementation of the long-term Energy Sector Development Plan (PDSE 2030) and the Poverty Reduction Strategy Paper (PRSP). The energy sector is presently being considered as a factor for attracting investment and strengthening increase, particularly as Cameroon’s hydroelectric potential ranks second-highest in Central Africa, next that of the Democratic Republic of the Congo.
Moreover, Cameroon’s development objectives under the Vision 2035 envisage significant investments in the energy sector, with the inclusion of renewables. The policy goals of the government are to ensure energy independence through increased production and delivery of electricity, of oil and gas (petroleum resources) and to ensure their contribution to economic development.
With regard to rural areas Cameroon’s Rural Electrification Master Plan (PDER)concerns the electrification of about 660 localities through the extension of the interconnected grids, the rehabilitation and construction of isolated diesel power plants and mini-hydro plants inclunding the development of a regional grid. By 2020, the Government aims to achieve a 48% countrywide electrification rate, a 75% electricity access rate and a 20% rural electrification rate. This project will contribute to the succcess of these objectives.
Energy debates
The government is taking steps to strengthen the capacities of the regulatory agency, ARSEL, while working closely with AES-SONEL. These steps are in line with the implementation of the investment program that was agreed upon as part of the privatisation transaction. The Cameroonian government is contemplating different options for improving the country’s capacity to generate electricity, inclunding the construction of a new hydroelectric power plant. A revised National Energy Program is currently under discussion, particularly with regard to the firewood sub-sector.
A renewable energy policy is being prepared, with policy goals to increase the share of renewables in power and heat generation, and to involve private capital in the delivery of energy.
Energy studies
Cameroon Renewable Energy; Project Possibilities: Commissioned in 2001, this study identifies the actions necessary to assess Cameroon’s energy needs, and makes recommendations to a design team for a USAID project to promote renewable energy sources.
National Policies and Strategies on Bioenergy in Africa Case Study: Cameroon
The Competence Platform for Energy Crop and Agroforestry Systems for Arid and Semi-Arid Ecosytems – Africa
Role of government
Five major institutional players manage Cameroon\\\'s energy sector:
1. The Ministère de l\\\'Energie et de l\\\'Eau, (MINEE − Ministry of Energy and Water) in charge of the design and implementation of the national energy policy;
2. ARSEL, the Electricity Regulatory Agency;
3. AER, the Rural Electrification Agency;
4. AES-SONEL, the current operator which, under a framework concession arrangement from which individual concession contracts are derived applicable to each function, ensures the integrity of each of the sector\\\'s activities; and,
5. SNH, the National Oil Company, in charge of the oil and gas sector.
Government agencies
The Electricity Development Corporation (EDC, http://www.edc-cameroon.org/)
The Electricity Development Corporation (EDC) was created in November 2006. The organisation is responsible for:
- Management of public assets in the electricity sector, on behalf of the national.
- Studying, preparing or executing any infrastructure projects in the electricity sector that are entrusted by the National;
- Participating in the promotion and development of public and private investment in the electricity sector.
The Rural Electrification Agency (AER)
The AER promotes electricity by providing operators and users with the technical, and possibly financial, assistance required for development of renewables. The agency acts as a rural electrification consultancy for the National and, as such, develops community management mechanisms for renewables, and organises the rural populations benefiting from electrical installations.
The Energy Management Unit
Within the Ministry of Energy and Water, the Cellule de la maîtrise de l’Energie, has carried out a few tentative actions to promote renewable energy.
Energy procedure
To tackle power cuts, and seasonal load shedding a national electricity development programme has been established, this consists mainly of the construction of large hydroelectric projects. These include the Memve\\\'ele Hydroelectric Dam (200 MW) to be built on the river Ntem in the Southern region, and the Lom Pangar (170 MW) water reserve in the Eastern region.
Other minor hydroelectric projects have equally been proposed such as the Natchtigal dam to reinforce energy supply to the Aluminium Smelting company (ALUCAM) in Edea. Cameroon hopes to triple electricity output to 3,000 MW by 2020 through a series of hydro and thermal generation projects.
- Cameroon– Energy Sector Development Project (2008-2013)
Funded by the World Bank at a cost of US$65 million, the project aims to increase access to modern energy services in targeted rural areas, and improve the planning and management of sector resources by all energy sector institutions. The project is expected to contribute to improved reliability of electricity supply. Increased access to and reliability of electricity are key factors in the realization of the government\\\'s increase and poverty reduction strategy.
- The Clean Development Mechanism (CDM) & Carbon Finance for Sustainable Energy in Africa (CF-SEA)
Financed by the United Nations Foundation and the World Bank, and implemented under the supervision of the United Nations Environment Programme (UNEP), the Carbon Finance for Sustainable Energy in Africa (CF-SEA) programme assists a number of Clean Development Mechanism (CDM) projects in Cameroon while promoting clean energy technologies. Cameroon currently has about 60 MW of CDM projects under development, with estimated emissions reductions of about 2 million tonnes of CO2 equivalent until the end of the Kyoto Protocol’s initial commitment period.
At present, 70% to 80% of Cameroon’s power is derived from hydropower sources, with the remainder from conventional thermal. Cameroon’s initial independent power producing agreement (IPP) will add 216 MW in power generation and trigger the development of Cameroon’s gas reserves, as from presently on unexploited. As well, Cameroon will further increase its generation capacity at the same time as the new Lom Pangar plant becomes fully operational.
Energy regulator
The Electricity Sector Regulatory Agency (ARSEL, www.arsel-cm.org) was created by decree No. 99/125 of the 15 June 1998.
Degree of independence
Five out of nine ARSEL board members are appointed by the government, one is a consumer representative. There is some possible overlap with other regulatory agencies (for example, the Electricity Government, AER and the Cameroonian Competition Commission).
Financing for the institution comes from a levy on the industry for service and donor/lender funds.
Regulatory framework
Instead of specific legislation to promote renewable energy in general or specific clean technologies, there is rather a general legislation concerning the electricity sector. In its title IV, Chapter I, the law n°98/022 of 24 December 1998 governing the electricity sector, ARSEL and the REA are in charge of the promotion and the follow-up of the use of the primary sources of energy, in particular renewable sources.
Regulatory roles
ARSEL is tasked with monitoring and regulating the electricity sector. Its principal missions are to:
- Monitor the sector\\\'s activity,
- Monitor the sector\\\'s financial equilibrium and approve tariffs,
- Examine concession licence applications,
- Authorise electricity generating and distribution in rural areas,
- Protect consumers, and
- Promote competition and facilitate private sector involvement in the sector.
Energy regulation role
The AER is responsible for formulating policy and recommendations for rural electrification for the Ministry of Energy, inclunding producing management schemes for rural communities in relation to electricity access.
Regulatory barriers
The institutional environment of Cameroon does not encourage private investment . Insufficient investment regulations and a lack of standards and quality control mechanisms makes it almost impossible to collaborate with traditional financial institutes.
It is therefore very difficult to establish a national market for renewable energy. Unreliable infrastructure, insufficient distribution networks, anticompetitive commercial framework inclunding administrative bottlenecks and financial insecurity are the majority significant risks and barriers.
Overview data for Cameroon
-- = Not applicable; NA = Not available; E = Estimate value
Sources: EIA. For more detailed data, see International Energy Statistics.
Data last updated: May 30, 2013
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