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ENERGY

Historic of electricity in Cameroon

 

Before 1961

English-speaking Cameroon

1929
: The Luermann and Malale hydroelectric power plants were inaugurated and supplied electricity to the Muyuka region. This was mainly intended for homes and factories of colonists (private initiative).
1946 : A public electricity utility entity was created to supply electricity which was bought mostly from private plants installed by colonists.
1958 : construction of the Yoke power plant.

 

French-speaking Cameroon

Before the 1939-1945 war: the first electricity plants in Nkongsamba, Douala and Yaounde were created by the Administration and operated through private management companies or directly by the companies themselves.

1948 : A mixed economy company known as "Energie Electrique du Cameroun (ENELCAM)" was created and assigned to develop the Edea I hydroelectric plant on the Sanaga to supply power to Douala and Edea as from 1st January 1953. This power plant initially had two 11 MW units, supplemented by the construction from 1955 to 1958 of the Edea II power plant with 6 units of 20.8 MW each. In the meantime, a third 11 MW unit was installed at Edea I. This additional construction was made to supply electrical energy to the big electrochemical facilities that ALUCAM had just commissioned in Edea.

Subsequently, the Edea power plant has been extended through progressive development from 1966 to 1976, first by ENELCAM and later by SONEL with the adding of Edea III (five units of 20.8 MW each).

 

After 1961:

1962 : The Cameroon Electricity Corporation (POWERCAM) was created in West Cameroon.
1963 : A mixed economy company known as "Electricité du Cameroon (EDC)" was created with majority shares owned by the State of East Cameroon and local councils. It was intended to manage all public distribution of electricity, and subsequent generation and transmission facilities, with the exception of the Edea power plants that was run by ENELCAM. It eventually took over the following concessions:

  • from 1st July 1964, public power distribution systems in Douala and Edéa;
  • from 1st February 1966, public power distribution systems in Yaounde, Bafang, Bafoussam, Dschang, Ebolawa, Foumban, Kribi, Maroua and Nkongsamba.
  • from 1st January 1971, public power distribution systems in Garoua;
  • 1967to 1974,EDCfundedand commissionedtheelectrificationof14towns inCameroon.

1973 : the State of Cameroon started discussion that led to the merger of ENELCAM and EDC to form a new company.
1974: on 18 May, the Cameroon National Electricity Corporation (SONEL) was created to with mission to manage public power distribution systems, including that of the former West Cameroon.

The constituent general assembly meeting of SONEL adopted the articles of association according to which SONEL became a mixed-economy public company with an industrial and commercial nature for the generation, transmission, distribution and use of electrical energy in Cameroon. The first Board meeting that was organized appointed the following persons:

  • NTANG Gilbert, Board Chairman
  • NIAT NJIFENJI Marcel, General Manager
  • NDIORO Justin and DAKAYI KAMGA Thomas, Deputy General Managers

1975 : Absorption of POWERCAM by SONEL
2001 (17 July)
: Privatization and takeover of SONEL by AES-Sirocco Limited, a subsidiary of AES Corporation that held 51% of the capital ; State of Cameroon 44% and Personnel 5%. This was the era of AES-SONEL.
2014 (23 May) : The Government of Cameroon signed an agreement which granted ACTIS 56% of the shares of AES-SONEL and its subsidiaries KPDC and DPDC.
11 August 2014 : Mr Joël NANA KONTCHOU was appointed as new GM and was officially installed on 19 August.
12 September 2014 : The new company name was unveiled during a ceremony at the Yaounde Hilton Hotel, chaired by the Minister of Energy and Water Resources, Dr. Basile Atangana Kouna. This marked the beginning of the era Eneo Cameroon S.A. (Eneo).

source: www.eneocameroon.cm

 

 

Sector profile

ENERGY SOURCES

Total installed electricity capacity (2010) : 1448 MW (including 476 MW from auto-producers). As of 2011, 70 to 80 percent of Cameroon’s power is derived from hydropower source, with the remainder from conventional thermal.

Total primary energy supply (2009): 6,918 Ktoe.

Biofuels & wasted : 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 particularity biomass. Despite the clear progress 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 percent mark in 2000, before dropping again in 2003. Petroleum imports, which constitute the entirety of the country’s energy imports, totaled 2,356 ktoe in 2007.

 

Extend network

Access to power has steadily improved in Cameroon. National access to electricity increased from 37% in 1986 to 46% IN 2002, and to 48% in 2007, above the average for Africa’s resource-rich countries. Estimates of urban access suggest that between 65% and 88% of the urban population has access to electricity. At 88%, access to power in urban areas is greater than in most low, middle-, and resource-rich countries 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 countries. Electricity supply is unevenly distributed owing to the discontinuity of the national grid, which prevents the transfer of power among 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. Consequently, there is significant unmet solvent demand. This situation is exacerbated by the fact that the country’s three main transmission grids are completely isolated from one another 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 important solar energy resources are available throughout the country. In the most suitable parts, the average solar irradiance is estimated at 5.8 kwh/day/m2, while the rest of the country commonly sees 4,9 kwh/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 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 also has the third largest 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/year and regeneration of only 3,000 hectares/year. Primary uses for biomass in the country include heating and light for the majority of the rural population. Utilisation of palm oil for biodiesel is also 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 area: Ngaoundéré region, Mt. Cameroon region and Manengoumba area with Lake Moundou. However this potential seriously examined.

 

Hydropower

Cameroon has the largest 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 main 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 region of Cameroon, however this potential is yet to be properly exploited.

Energy efficiency

The residential sector in the country contributes most to primary energy demand, totaling some 71%, including 95% of the nation’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

Government agencies

The Electricity Development Corporation (EDC, http://www.edc-cameroon.org/)

The Electricity Development Corporation (EDC) was created in November 2006. The organization is responsible for:

  • Management of public assets in the electricity sector, on behalf of the state.
  • Studying, preparing or executing any infrastructure projects in the electricity sector that are entrusted by the State;
  • Participating in the promotion and development of public en private investment in the electricity sector.

The Rural Electrification Agency (AER)

The AER promotes electricity by providing operators and user with the technical, and possibly financial assistance required for development of renewable. The Agency acts as a rural electrification consultancy for the State and, as such, develops community management mechanisms for renewable, and organizes the rural populations benefiting from electrical installations.

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 consist maintly 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 Sothern region, and the Lom Pangar (170 MW) water reserve in the Eastern region.

Other minor hydroelectric projects have 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 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 growth and poverty reduction strategy.

  • The Clean Development Machanism (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 Machanism (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 millions tones of CO2 equivalent until the end of the Kyoto Protocol’s first commitment period.

At present, 70% to 80% of Cameroon’s power is derived from hydropower sources, with the remainder from conventional thermal, Cameroon’s first independent power producing agreement (IPP) will add 216 MW in power generation and trigger the development of Cameroon’s gas reserves, as yet unexploited. Also, Cameroon will further increase its generation capacity when the new Lom Pangar plant becomes fully operational.

Energy regulator

The Electricity Sector Regulatory Agency (ARSEL, www.arsel-cm.org) was created by decree N° 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 Administration, AER and the Cameroonian Competition Commission).

Financing for the institution comes from a very on the industry for service and donor/tender funds.

Regulatory framework

Instead of specific legislations 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 998 governing the electricity sector, ARSEL and REA are in charge of the promotion and to 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,
  • Project 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,, as well as 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 mechanism 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 as well as administrative bottlenecks and financial insecurity are the most significant risks and barriers.

 

Cameroon is endowed with varying sources of energy .The table below gives a synopsis of energy types, potential and level of exploitation in Cameroon.

ENERGY TYPE

POTENTIAL/ CAPACITY

LEVEL OF EXPLOITATION

SOLAR ENERGY

5.8 Kwh/day/m2

Very timidly used energy source but its use has been increasing over the years.

WIND ENERGY

Exist in very limited amount in the North of Cameroon

Insufficient potential for adequate exploitation

Biomass Energy

Third largest potential in  sub-Saharan Africa

Mostly used by rural inhabitants for lighting and heating.

Geothermal Energy

Enormous potential found in Ngaoundere, Mount Cameroon region and the Mandara

 

HYDRO ELECCTRICITY POWER

103Twh/year

Three major dams account for Cameroons energy i.e. Lagdo 72Mw, Songloulou 384 Mw and Edea 267 Mw. Many HEP projects are underway to attain to attain 3000 Mw come 2020.

 

In Cameroon there exist many actors in the energy sector, both in the private and public sector. The table below shows the various actors and their various functions:

                                            ACTORS

      RESPONSIBILITIES/FUNCTIONS

MINISTRY OF WATER AND ENERGY

Incharge of overseeing

 the implementation of national energy policy in Cameroon.

ENERGY MANAGEMENT UNIT

Incharge of carrying out studies on renewable energy.

NATIONAL ELECTRICITY REGULATORY AGENCY (ARSEL)

Monitoring and regulating the electricity sector;

Monitor the sector’s activity

Monitor financial equilibrium and approve tariffs

Examine concession license application

Authorize electricity generation and distribution in rural areas

 

Protect consumers and promote  competition and facilitate private sector involvement in the sector

RURAL ELECTRIFICATION AGENCY(REA)

Incharge of the production and follow up of electricity in the rural milieu especially renewable sources of energy.

AES SONEL

Incharge of production, transportation and distribution of electricity.

 

 

 

 

RESTRUCTURING PROJECTS IN THE ENERGY SECTOR OF CAMEROON.

The following are some major Restructuring projects in Cameroon and the expected energy they are to generate:

Memve’le

HEP Plant to produce 201 MW

Lom-Paangar

HEP Plant to produce about 30MW

Mgbazoumbe

6-12 MW aimed at supplying the East with energy exporting opportunites

Kribi Gas Plant

216-330 MW upon completion.

 

Mini Hydro Electric Power Stations;

-Yoke Malale- South West Region

-Mekin Olamze- South Region

-Ndokayo – East Region

- Mekin on River Dja- South Region