Governmental Framework

Governmental framework

The key legislation for the development of the Ivorian electricity sector is the Electricity Act 1985, which liberalised the market. Since then two IPPs have entered the generating segment. CIE is a vertically integrated utility which is responsible for generation, transmission and distribution. 85% of the company is privately owned, but it is operated under a state concession.

As part of the government’s strategy to increase power capacity and achieve financial equilibrium in the sector, Cote d’Ivoire reformed its electricity sector once again by enacting a new Electricity Code in March 2014. There is no specific policy in place for the expansion of renewable energy. However, green energy sources are expected to play a major role in the strategic action plan for the development of the electricity sector by 2030.

 

Governmental institutions

Ministère des Mines, du Pétrole et de l’Énergie

The Ministry of Mines, Petroleum and Energy is responsible for national energy policy and coordination of activities in the sector. The current minister is Adama Toungara. The ministry sets out the framework for the sector, and monitors electricity production and distribution. It also ensures the promotion of renewable energy development through its technical bodies, the Office for the Promotion of Energy Efficiency (Bureau des Économies d’Énergie) and the Sub-Directorate of Energy Control and Renewable Energy (Sous-Direction de la Maîtrise de l’Énergie et des Énergies Renouvelables). For this purpose, the two entities carry out joint power billing for public buildings, track the use of residues in the agricultural sector and monitor experimental solar stations.

http://www.energie.gouv.ci/

 

L’Autorité Nationale de Régulation du secteur de l’Electricité de Côte d’Ivoire (ANARE)

Established in 1998, the ANARE is the electricity sector regulator. It oversees compliance with laws, regulations and obligations under the authorisations and conventions in force in the electricity industry. It also makes proposals to the government for electricity tariffs and the tariffs for grid access. The ANARE ensures protection of consumers and their rights and arbitrates in disputes between operators or between operators and the state. Finally, it advises and assists the state in regulating the electricity sector. The 2014 Electricity Code gives the ANARE greater independence and authority by designating it as an independent legal entity with financial autonomy.

http://www.anare.ci/

 

Compagnie Ivoirienne d’Électricité (CIE)

CIE is a vertically integrated monopoly, handling the majority of electricity generation, management and distribution in the country. Created in August 1990 by the French group Bouygues and electricity company EDF, CIE is mainly in private ownership, but holds a public service concession for the production, transportation, export, import, distribution and marketing of electricity. Currently, 15% of the company is owned by the Ivorian state, with 54% held by the biggest shareholder FRANOVE, a French company. The IPPs in the generating sector sign power purchasing agreements with CIE in its role as the sole transmission and distribution system operator.

http://www.cienet.net/

 

Société des Energies de Côte d’Ivoire (CI-ENERGIES)

In December 1998, the government reformed the institutional framework, limited the mandate of CIE and created two new national companies: Société de Gestion du Patrimoine du secteur de l’Electricité (SOGEPE) was set up to manage the state’s assets and the financial flows in the sector on the government’s behalf, and Société d’Opération Ivoirienne l’Electricité (SOPIE) was established to ensure long-term planning for the sector. In 2010, Cote d’Ivoire implemented another reform which led to the merger of SOGEPE and SOPIE to form a new national electricity company, Société des Energies de Côte d’Ivoire. CI-ENERGIES continues to carry out the tasks of both companies and manages electricity supply and new projects on behalf of the state in its role as the grantor of concession agreements.

http://www.cinergies.ci/

 

Regulatory framework – act, policies and regulations

Electricity Act 1985

The Electricity Act 1985 opened up electricity production to private operators, although the state maintained its monopoly on the transmission, distribution, import and export of electricity. The government granted Companie Ivoirienne l’Electricité a concession for the production, transmission, distribution, import and export of electricity. CIE replaced the former national electricity company.

 

Electricity Code 2014

In 2014 the sector was reformed with a new Electricity Code, a comprehensive framework for the production, transmission, dispatching, distribution, commercialisation, import and export of electricity. The code reinforces the powers of the electricity regulator, takes into account new and renewable energy sources and includes provisions to combat fraud and illegal activities that cause substantial technical and commercial losses in the sector. The regulations further liberalise the power sector by formally ending the state monopoly on electricity transmission, distribution, commercialization, imports and exports. All of these activities may now be carried out by private operators.

As in many countries in the region, electricity tariffs in Cote d’Ivoire are considered too low and not cost-reflective, which discourages IPPs from investing in the sector. Social tariffs have also been introduced, affecting the profitability of the sector and hindering investment plans. Cote d’Ivoire has designed a new pricing strategy which includes an exemption from the social tariffs for large numbers of consumers, implementing gradual price increases to bridge the generating cost differential and renegotiating export prices. The Electricity Code reflects this pricing strategy by defining the principles for electricity pricing.

 

Strategic action plan for the development of the electricity sector by 2030

The Ivorian government’s strategic action plan identifies 66 projects that will require massive private-sector investment, including through PPPs with IPPs. The government intends to develop a balanced energy portfolio by encouraging the use of new and renewable energy sources. Hydroelectric and thermal power plants developed by private operators will account for around 85% of the additional 1,500 MW of capacity that the country plans to commission by 2020. Renewable energy is expected to make up 5% of the supply mix by 2015, 15% by 2020 and 20% by 2030.