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Overview of the Eastern African Power System April 11 2018, Addis Ababa Ethiopia

OUTLINE

Power Production & Interconnections 2 Introduction 1

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Regional Power Market 3 4 Planned Activities 5 Conclusion

• 1. Introduction-EAPP Establishment

Established in 2005

Adopted as a Specialized Institution for Energy by COMESA in 2006 Has 11 Countries as members and 1 Regional Provider (SINILAC) Have a Potential of four (3) additional Countries

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EAPP Strategic Plan 2017 – 2027 Two Power System Master Plans The 1st EAPP PSMP 2011 was issued on May 2011 EAPP PSMP 2014 update was issued on December 2014

• 1. Introduction EAPP Objectives:

Secure power supply for the Region's countries; Optimize the usage of energy resources available in the Region by working out regional investment schemes in Power Generation, Transmission and Distribution, taking into account the socio- economic and environmental aspects; Increase Power supply in the Region in order to increase the access rate of the population to electricity. Reduce electricity cost in the Region by using power systems interconnection and increasing power exchanges between countries;

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countries; Provide efficient co-ordination between various initiatives taken in the fields of power production, transmission as well as exchanges in the Region; Facilitate financing of integration projects in the fields of power generation and transmission in the Region Facilitate, in the long-term, development of electricity market in the Region Affordable and Clean Energy Ensure access to Affordable, Reliable, Sustainable & modern Energy for all

2 Power Production & Interconnections

Hydro potential is large in e.g. the DRC, Ethiopia, Uganda and Sudan (in the order of >45,000 MW, 45,000 MW, 3,000 MW and 3,000 MW Ethiopia, Kenya, the DRC and Tanzania have significant potential for using geothermal energy. The total capacity of Kenya is expected to reach 4,000 MW by 2025 Egypt, Libya and Tanzania have the potential of Natural gas in the region. The electricity demand is expected to increase from 315

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The electricity demand is expected to increase from 315 TWh in 2015, to 675 TWh in 2025, corresponding to an annual growth rate of 7.6%. The access to electricity is in the range of 10-30% Large investments in new generation and transmission are necessary Electricity Generation in 2015 by fuel type Natural gas is the dominating fuel 70% on a regional basis Hydro is 16% un-served demand 4%

2 Power Production & Interconnections

Existing and Committed Generation (MW)

Year Country Natur al gas Coal Hydro Geot herm al Oil Wind Solar PV Other Total (MW)

2015 EAPP (including

• S. Sudan)

32,750

• 11,033

691 5,847 2,366 188 421 53,296 2020 32,605 3,154 21,290 2,496 4,839 3,836 763 1,181 70,164 2025 28,021 3,154 21,290 2,496 4,099 3,836 763 1,181 64,840 EASTERN AFRICA POWER POOL 28,021 3,154 21,290 2,496 4,099 3,836 763 1,181 64,840

Year Natural gas Coal Hydro Geother mal Oil Overall Total (MW) 2015 53,296 2020 31,038 1,521 2,598 200 313.00 105,834 2025 54,153 2,657 15,193 1,879 313 139,035

Model Based Investment in Generation (MW)

2 Power Production & Interconnections National Master Plans

Hydro , renewable

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2 Power Prod. & Intercon. - Existing and committed Cross Boarder Transmission Capacity 2015

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1600 1600 1

2000 MW Existing and committed cross boarder transmission capacity

Committed Existing

180 MW

2 Power Production & Interconnections cont

200 MW 180 MW 330 MW EGYPT LIBYA SUDAN ETHIOPIA SOUTH SUDAN 200 MW 200 MW DJIBOUTI

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49 MW 1300 MW 12MW 5 MW 100 MW 16 MW 27 MW 100 MW 500 MW 145 MW 600 MW UGANDA RWANDA DRC KENYA TANZANIA Burundi

2 Power Production & Interconnections cont Key Recommendations (Main Scenario)

Capacity

(MW) Sudan – Ethiopia 1,600 Egypt – Sudan 1,000 Rwanda – Tanzania 1,000 Recommended new capacity by 2020/ 2025

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* = Recommended capacity for 2020 and 2025 is the same

Rwanda – Tanzania 1,000 Rwanda – DRC 300 Uganda – South Sudan 600 Libya – Egypt 200 Kenya – Uganda 600 DRC – Uganda 500 Sudan – South Sudan 300

2 Power Production & Interconnections cont Key Recommendations (Main Scenario)

330 MW EGYPT LIBYA SUDAN ETHIOPIA SOUTH SUDAN 1000 MW 1600 MW

Recommended new lines by 2020/2025

200 MW

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1000 MW 300 MW 500 MW 600 MW 600 MW UGANDA RWANDA DRC KENYA TANZANIA

2 Power Production & Interconnections cont _ Key Recommendations (Main Scenario_ with adjustment )

Capacity

(MW) Sudan – Ethiopia 1,600 Egypt – Sudan 2,000 Rwanda – Tanzania 1,000 Recommended new capacity by 2020/ 2025

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Rwanda – DRC 300 Uganda – South Sudan 600 Libya – Egypt 200 Kenya – Uganda 600 DRC – Uganda 500 Sudan – South Sudan 300 Ethiopia – South Sudan 200

2 Power Production & Interconnections cont _ Key Recommendations (Main Scenario_ with adjustment)

330 MW EGYPT LIBYA SUDAN ETHIOPIA SOUTH SUDAN 2000 MW 1600 MW 200 MW

Recommended new lines by 2020/2025 with adjustments

200 MW

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1000 MW 300 MW 500 MW 600 MW 600 MW UGANDA RWANDA DRC KENYA TANZANIA

Pilot Project of short-term trade on two selected lines Uganda-Kenya and Ethiopia-Sudan Draft rules prepared Wheeling tariff under preparation Operations Committee established and performed as interim

• 3. Regional Power Market Development

Activities _Status

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Operations Committee established and performed as interim Market Committee The bilateral agreement for the Long Term Power Trade

Investments in Transmission/Interconnectors between countries Savings in operational costs: Reduction of fuel costs by more efficient dispatch across countries and technologies Investment in generation: More hydro and geothermal, along with less investment in expensive coal-fired generation

3 Regional Power Market Development - Economic Rationale

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Without new Interconnectors - the total system cost will increase - for example in 2020, the total annual system cost is estimated to be 412 million USD/year

list of activities planned to take place over the coming 3-years, OPERATIONAL AND TECHNICAL READINESS –to ensure the

• perational

readiness

• f

the utilities to

• perate

in a coordinated manner in the interconnected system. COMMERCIAL READINESS: Some bilateral trading

• Arrangements will be put in place to first facilitate simple

long term bilateral trades, then to enter into short term arrangements via a trading platform. DEVELOPMENT OF REGIONAL INFRASTRUCTURE: In addition to the protection and enhancements to the transmission

• 4. Planned Activities

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DEVELOPMENT OF REGIONAL INFRASTRUCTURE: In addition to the protection and enhancements to the transmission system to support system stability, new, strategic investments will be required to increase the opportunities for regional trade. This work stream includes an update of the RPMP , feasibility for two critical transmission lines, and site specific investments to facilitate the development of new solar plants. DEVELOPING THE CAPACITY OF THE EAPP AND ITS ORGANS: the capacity of the EAPP and associated regional institutions, such as the IRB and the control center must be developed.

Interconnection and generation projects are advancing creating essential physical requirements for trade between non- adjacent countries EAPP is actively trying to make sure that required investment in the form of

• 5. Conclusion

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EAPP is actively trying to make sure that required investment in the form of Generation Transmission are done so that the region starts benefiting from regional Power Trade.

W

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Zafarana Wind Farm, Egypt Olkaria Geothermal PP , Kenya Ubungo Gas PP , Tanzania Merowe Hydro PP , Sudan

THE COMPANY PRESENTATION TEMPLATE NAME

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