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Renewable Energy Tariff Calculation Toolbox for ECOWAS

Renewable Energy Tariff Calculation Toolbox for ECOWAS

State 

ongoing

Date 

4 November, 2016 to 31 August, 2017

Region 

West Africa

Summary

The interest in renewable energy (RE) technologies is growing in West Africa with a target to install 128,000 Clean Energy Mini-Grids (CEMG) by 2030. However, the lack of policy instruments on renewable energy has been to date one of the main barriers for the participation of private entrepreneurs. The negotiation of feed-in tariffs on a project basis and the lack of appropriate instruments and methodologies to design fair and transparent renewable energy tariffs have been major obstacles for its development.

After the EUEI PDF successfully completed the development of a tariff structure for the energy sector in Senegal in 2014, the ECOWAS Regional Centre for Renewable Energy and Energy Efficiency (ECREEE) requested support for a similar activity for the ECOWAS region. The project was launched during the 2016 ECOWAS Sustainable Energy Week and has been successfully completed by August 2017. ECREEE and the EUEI PDF jointly developed a toolbox to support ministries, regulators and utilities within the ECOWAS region to apply appropriate approaches and methodologies in the design of renewable energy tariffs. For that matter, the project has achieved the following milestones:

  • Development of a user-friendly toolbox with several standard tariff models (technology specific FiT, avoided costs based FiT, ceiling tariffs, etc.) that can easily be adapted to the specificities of each country.
  • Adaptation and validation of the toolbox in two ECOWAS member states – the Gambia and Cabo Verde.
  • Training of 62 key personnel from ministries, regulatory agencies and utilities from the 15 countries of ECOWAS in the use of the toolkit.

The updated models and manual are now available to all member states and can be found on the websites of the EUEI PDF (download section on this page on the right) and ECREEE.

Most representatives of the member states would appreciate further in-country training for all stakeholders in their sectors, a continuous task for ECREEE to discuss individually with representatives of the member states.