Macroeconomic performance

Real GDP growth reached an estimated 7.4% in 2018, down from 7.7% in 2017, supported by external demand for agricultural and oil products and stronger domestic demand resulting from major investment projects and households consumption. The economy faced several shocks in 2017, including a sharp decline in cocoa prices, higher oil prices, and social tensions. As a result, the budget deficit increased to 4.2% of GDP, but it improved to an estimated 3.8% in 2018. Public debt increased to 48.2% of GDP in 2018, driven by Eurobond issuances in 2017 and 2018. The risk of debt distress remains moderate. Inflation was low, at an estimated 0.5% in 2018, down from 1.0% in 2017. The current account deficit widened to an estimated 2.7% of GDP in 2018 from 1.8% in 2017.

The economic outlook remains favorable, with real GDP growth projected at 7.0% in 2019 and 6.9% in 2020. A good performance in the agricultural sector will keep inflation below the 3% convergence threshold for the West African Economic and Monetary Union (WAEMU). The current account deficit is projected to stabilize at 2.8% in 2019, in connection with sustained imports of capital goods related to infrastructure projects.

The economy remains vulnerable to external shocks that may stem from unfavorable evolution of commodity prices (mainly cocoa and oil) and adverse climate conditions. Another pressing challenge is to sustain economic growth and ensure a more balanced distribution across sectors, with a view to achieving a structural transformation of the economy. This would require improving the quality of agricultural products and upgrading the industrial sector toward higher value added and high–job creation activities.

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Source: African Economic Outlook, 2019, African Development Bank. Accessible here

Business environment and private sector development

 

Côte d’Ivoire has made significant progress that have placed the country among the top ten business environment reformers in the world. Since 2012, the business climate has improved thanks to, notably: (i) the implementation, in 2012, of the new Investment, Mining, and Electricity Codes, which are attractive and comply with international standards; (ii) the operationalization of the one-stop shop for investments; (iii) shorter timelines and simplification of formalities for starting a business and paying taxes. The country’s ranking in the World Bank’s annual report on “Doing Business” has improved from the 167^th place in 2012 to the 122nd in 2019. Other reforms concerned the establishment of a commercial court and the operationalization of CN-PPP, attached to the President of the Republic. The Government’s efforts have enabled Côte d’Ivoire to continue to be the most attractive economy in the WAEMU region and to occupy the third place.

Côte d’Ivoire framework has allowed private investment in energy production since the 1980s and as of 2017 three IPPs are active (Azito Energie, Aggreko and Ciprel). The liberalization of other segments of the sector provided by the electricity code of 2014 will allow investments in the other segments by the end of the concession of the CIE (2020), with the exception of the dispatching activity which will remain a State monopoly.

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Source: Côte d’Ivoire 2018-2022 Country Strategy Paper, 2018, African Development Bank. Accessible here

Key takeaways on the electricity sector

Electricity Access

Côte d’Ivoire electricity access reached 92% of the population in urban areas, while in rural areas is still limited to 38%, although increasing. The national overall electricity access rate is 64% excluding ongoing electrification projects , 82% including them. These rates are one of the highest in the sub region. Detailed indicators are as follows:

Download Source: CI-Energies

Download Source: CI-Energies

Installed Capacity

Côte d’Ivoire’s existing electrical system is the third largest in West Africa, and is positioned to be one of the main hubs of electricity trading within the West African Power Pool (WAPP). The country installed capacity increased substantially by 56%, from 1,391 MW in 2011 to 2,200 MW in 2017. In 2011, the electricity system had structures with limited capacity, and recorded production shortfall and significant financial deficit. Over the 2011-2017 period, investments were made in power generation, transmission, and distribution, as well as in rural electrification. Actions have been taken by the Government to improve the financial situation of the electricity sector. Over the period, an additional capacity of 790 MW was commissioned, thereby increasing the installed capacity from 1,391 MW in 2011 to 2,200 MW in 2017. In addition, the transmission and distribution network was strengthened by the commissioning of new source stations in Abidjan region, the reinforcement of existing source stations and the extension and strengthening of the distribution network.

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Production

Electricity production over the last ten years shows a predominance of reliance on thermal energy: on average, 84% of electricity is produced by thermal power plants. Côte d’Ivoire wants to reach an installed capacity of 4000 MW by 2020, mainly with the participation of the private sector.  Indeed, almost all thermal energy production is in the hands of independent producers, while hydropower plants are owned by the state. Following the award of the distribution to CIE, the country also awarded the first IPP contract in Africa to Ciprel in 1994, and in 1998, it awarded the largest IPP in Africa to Azito Energie. Currently, electricity generation is dominated by the private sector (63% of total installed capacity in 2015), which accounted for a total of 7,649 GWh in 2018, down 6.6% in comparison to 2017. Total cost of energy bought to IPP in 2018 was equal to 177 billion FCFA, with the following breakdown: 75.13 billion to Ciprel, 71.48 billion to Azito Energie, and 30.03 billion to Aggreko.

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Production costs

Total production cost in 2018 was equal to 44.53 FCFA/kWh, which is 1.5 % higher than the targeted 43.85 FCFA/kWh, but 5.5% lower than that of 2017 (47.15 FCFA/kWh). This decrease of total production cost compared to 2017 is mainly due to the increase of hydraulic production in 2018.

• Production cost of thermal electricity: total production cost was equal to 55.87 FCFA/kWh in 2018, which is 7.8% higher than the targeted 51.85 FCFA/kWh, and approximately equal to thermal production cost in 2017. This deterioration in the cost of production is mainly due to the weakness of thermal production compared to what was planned by CI-ENERGIES.
• Production cost of hydraulic electricity: total production cost was equal to 17.62 FCFA/kWh in 2018, excluding structural costs of the hydraulic power stations (3.95 FCFA/kWh) and the purchase price of the energy of 35 FCFA/kWh from Soubré. This production cost is 5% lower than the 2018 target (18.63 FCFA/kWh), but 28% higher than that of 2017 (13.78 FCFA/kWh). This increase is due to the increased use of production from Soubré unit, whose proportion in total hydro production went from 30% in 2017 to 44% in 2018.

Maintenance

Though electricity services showed resilience throughout the crisis, the performance and development of the sector were compromised, and the impact of the crisis is still unfolding. Very little investment took place and maintenance of the electricity network was neglected during the period of political crisis and war in the North and West of the country from 2002 to 2010. However, the Compagnie Ivoirienne d’Electricité (CIE), the electricity service operator, continued to supply power throughout the country. The private generation companies Azito and Ciprel also withstood the crisis and continued to supply power effectively, despite a buildup of payment arrears. These arrears were the result of insufficient revenues for the national utility to pay these independent power producers (IPPs), and of insufficient resources for Côte d’Ivoire to support the sector during the crisis period. Many of the challenges currently facing the sector are due to the lack of investment and minimal maintenance of networks during the long political crisis. Interestingly, the private sector presence in the energy supply chain, from gas production through power production to network management and power distribution, may have served as a bulwark against greater decline during the crisis years, as payment discipline through the supply chain was observed to a large extent.

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Source: ANARE-CI 2017 Annual Report, page 27-28

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Source: ANARE-CI 2017 Annual Report, page 24

Downtime and efficiency

Average downtime and overall efficiency improved from 50 hours and 71.3% in 2013 to 22.20 hours and 82.00% respectively in 2018. Overall performance in 2018 is up by 0.20 points from 2017, mainly thanks to the improvement transmission efficiency from 92.27% to 93.99%, and the increased production within the country via the Soubré site. This improvement in transmission efficiency is expected to continue following the closure of the northern network by the commissioning of the 225 kV Laboa-Boundiali Ferké line on December 30, 2018.

Best performance in the national network was achieved in 1997, prior the civil war, with an average downtime equal to 13 hours and an overall performance equal to 87.43%.

Source:CI-ENERGIES

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Tariffs

Between 2012 and 2015, national energy consumption grew at an average rate of 15% per year. During this same period, rates increased on an average of 5% per year. In 2016, following the demonstrations that followed the announcement of the price increase, measures were cancelled. Electricity consumption, meanwhile, continued to grow in 2016 to more than 8,000 GWh. Export tariffs are on average 19% more expensive than at national level. In 2016, after a slight decline, they were equal to more than 70 FCFA/kWh and reached 71.7 FCFA/kWh in 2017. That same year, the volume of exports was up sharply (+84%) to more than 1,600 GWh. Côte d’Ivoire master plan anticipates an average energy production cost of 45 FCFA/kWh in 2030, a decrease of 44% compared to 2014 when it was estimated at 65 FCFA/kWh.

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Country strategy on the environment and climate change

Policy and Regulation 

Côte d’Ivoire remains vulnerable with impacts at various levels. The country is suffering from hazards associated with increasing exploitation of its natural resources, a drastic reduction in forest cover leading to loss of biodiversity, as well as air, water and soil pollution by domestic, industrial, agricultural, mining and maritime activities. To remedy the situation, the Government has taken measures to restore and safeguard the environment. The Forestry and Environment Code laws have been amended to promote better environmental protection and a more sustainable development, via notably the use of renewable energy. 

Côte d'Ivoire currently lacks a legal and regulatory framework to combat climate change, required for creating a favorable context for private investment in adaptation and mitigation (and more generally climate-resilient and low GHG emission development). Côte d'Ivoire adopted an Orientation Law on Sustainable Development in 2014. However, the law does not incorporate some of the key climate factors subsequently adopted – particularly the National Strategy for Combating Climate Change and the Contribution Determined at National Level (CDN), the main instrument for implementing the Paris Climate Agreement, and the preparation of a national roadmap for its implementation.

National Climate Agency

A bill on climate change and its implementing decrees, intended to provide a sufficiently precise legal basis to guide climate activities, is under consideration with the support of the European Union (EU). To advance the climate agenda, Côte d'Ivoire intends to establish a National Climate Agency, in accordance with the Orientation Law on Sustainable Development adopted by the National Assembly of Côte d'Ivoire. This law clearly stipulates the need to create, by decree, several entities, for example an agency and a climate fund. In addition, the National Strategy for Combating Climate Change goes to buttress this position. A feasibility study, which will help specify the mandate and powers of the new agency and its articulation with other elements of the institutional framework, is being conducted with the EU, including a law on combating climate change.

Source: Côte d’Ivoire 2018-2022 Country Strategy Paper, 2018, African Development Bank. Accessible here

Regional integration with the West African Power Pool

Côte d’Ivoire and the WAPP: key figures

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2018 Highlights

In 2018, the supply of electrical energy for export was marked by the following elements:

• Commissioning of the Ghana-Burkina interconnection in June 2018 via the 225 kV Bolgatanga (Ghana) - Zagtouli (Burkina) line;
• Improvement of the voltage withstand at the 225 kV Ferké substation following the commissioning of the 225 kV Laboa- Boundiali-Ferké line in December 2018. This line will also be used to decongest the 225 kV Taabo-Kossou-Bouaké artery which handles transport to Burkina Faso and Mali
• Since September 2018, energy exported to Burkina has fallen considerably compared to the targeted supply programme. This is due to the fact that the power system of Burkina Faso encounters difficulties to maintain the average transit beyond 60 MW, when 90 MW were targeted.

Integration challenges

According to Sédiko Douka, energy commissioner of the Economic Community of West African States (ECOWAS), West African nations face an energy crisis and individual state energy sectors are disadvantaged by local circumstances such as limited access to energy, poorly performing electricity companies, expensive tariffs, while challenges include the need to overcome a reliance on hydrocarbons and the development of renewable sources of energy. More will need to be done if regional progress towards electricity integration (via projects such as the recent commissioning of the Bolgatanga-Ouagadougou interconnection linking ECOWAS members Burkina Faso and Ghana) is to continue in the medium and long term. With access to electricity hovering between 40% and 52% of the population, and brownouts and blackouts averaging about 80 hours a month, the 15 ECOWAS member states need to confront a chronic lack of access to electricity across the region and persistently high prices. A lack of historical infrastructure planning and poor implementation contribute to enduring poverty and have led to an engrained reliance on emergency rental plants, which inflates power costs even more. Complicating the challenge of extending power supply infrastructure is the fact that several of the group's landlocked states, including Niger, Chad, Mali and Burkina Faso, are located in the Sahel region—an arid zone that will experience significant desertification as global temperatures rise over the course of the 21st century, according to forecasts by climate scientists. ECOWAS estimates that more than 75% of the population of member states are already affected at least once every two years by natural phenomena whose effects are becoming increasingly damaging because of climate change.

Clashing imperatives

Besides supporting the mandate for immediate power demand, the role of the West African Power Pool (WAPP) extends to driving long-term climate-proofing strategies recommended under the framework of the Paris Agreement on climate change, which is due to be implemented by 2020. This regional body is mandated to translate overarching public policy guidelines into sectoral investment schemes that favor relatively new green technologies. The schemes include encouraging the installation of diversified sources of renewable energy, creating off-grid generation and storage technologies and nurturing regional power networks and new trading mechanisms. Although these initiatives are complex, require close co-operation between member states and are expensive to implement, they will secure long-term electricity supply security for West Africa if they succeed.

Domestic power utilities are at the forefront of electrification efforts, and their mandates to increase nationwide electricity production frequently lead to conflicts with the WAPP over the type of power generation used. The WAPP is concerned that regional pressure on states to increase electrification could lead to an oversupply of inefficient, fossil fuel-intensive or environmentally damaging generation that relies on coal or hydropower, which would be counterproductive to the WAPP's climate-proofing aims. Indeed, new research by the US National Academy of Sciences suggests that similar large-scale electrification projects in Western countries in the past have had a disastrous long-term effect on the environment[1]. At present, domestic demand in West African countries is often too low to attract investment in such large-scale projects, but this is changing. Several countries are set to increase their reliance on hydrocarbons as a result of developments in the West African basin, especially in Senegal, Ghana, Côte d'Ivoire and Nigeria (the last being an established oil producer). But the countries involved argue that the resulting power generation from these developments will mostly be gas-fired, which would provide significant low-emission generation gains to the power market.

Source: Côte d’Ivoire 2018-2022 Country Strategy Paper, 2018, African Development Bank. Accessible here

Network integration

If the installation of new power generation capacity remains largely a domestic state-based prerogative, the integration of existing networks is firmly in the WAPP's remit. The continued involvement of third-party donors and financial institutions such as the African Development Bank and the World Bank is likely to ensure that the focus on regional integration remains at the forefront of electricity stakeholders' concerns. In 2016, with the African Development Bank’s help, the WAPP accelerated the construction of a 330 kV double circuit high voltage transmission line from Erukan (Nigeria) to Sakete (Benin) and help meet the needs of the ECOWAS region in suppling reliable electricity supply at affordable cost. The Project, a WAPP key priority, will ensure stable integration of the national electricity networks in the ECOWAS Region and facilitate the accessibility to economic energy resources to all member states of the region. The realisation of this 330 kV WAPP Nigeria–Benin Project will facilitate optimal power exchanges and trading between the Member States. It seeks to establish a robust transmission link from Côte d’Ivoire to Nigeria passing through Prestea, Aboadze, Volta in Ghana, Lomé in Togo, and Sakete in Benin. In 2017, with the World Bank's help, the WAPP launched a regional off-grid electrification project which aims to increase access to electricity in rural areas through innovative solar power solutions, and a regional electricity trading market, which was launched in July 2018. A number of transmission interconnections have already been completed or are under way, such as the 225-kV exchange line between Burkina Faso and Ghana, a 225-kV transmission project linking Côte d'Ivoire, Liberia, Sierra Leone and Guinea and the OMVG interconnector, which will link Senegal, Gambia, Guinea-Bissau and Guinea. It is estimated that the entire region will be connected by the start of the next decade.

Regional electricity market

Assuming that regional states can overcome the obstacles identified earlier, the integration of West Africa's growing power-generating capabilities could create the region's first true power market. Currently, only about 7% of the electricity produced in West Africa is traded. However, in July 2018 the WAPP launched a trading market (with its headquarters in Cotonou, Benin) that will allow ECOWAS member states to trade their surplus electricity. The World Bank estimates that an integrated power-trading system in the region could bring operational and power-generation cost savings of USD 5bn-8bn a year by allowing countries to import cheaper and more cleanly generated electricity.

However, the potential new market throws up several complex political and technical challenges, which will require close cooperation and determination among policymakers, regulators and utilities if they are to work. Throughout much of the region, local power utilities are expected to hinder the conclusion of trading agreements, and low capitalization, ongoing supply problems, poor domestic collection capacity and corruption are likely to result in poor collection of payments, making it difficult to enforce international contracts. Such problems have already been reported in pre-existing projects operating on a smaller scale, such as the West African gas pipeline system linking Nigeria, Benin, Togo and Ghana. After force majeure was declared on the supply of gas by Nigeria at the start of the project in 2011, the pipeline underperformed and the Ghanaian authorities consequently underpaid for supply. The WAPP will need to instigate measures to improve the power sector's creditworthiness, provide guarantees and involve regional institutions, if it is to take the lead in ensuring that the region's electricity infrastructure stands a chance of succeeding, once it is built.

Source : African Development Bank Analysis; The Economist Intelligence Unit, December 2018

Electricity Regulatory Index

Regulatory Assessment

The Electricity Regulatory Index for Africa (ERI) is a flagship publication of the Power, Energy, Climate Change and Green Growth Complex of the African Development Bank, which seeks to empirically evaluate the performance of African utility regulators, benchmark their performance against international best practices as well as a peer-to-peer comparison of their performance. In 2018, Côte d’Ivoire ranked 12^th out of the 15 surveyed countries and overall performance of the country indicates that there is a minimal impact of regulatory actions on the sector, even though Cote d’Ivoire has taken initial steps to develop appropriate laws, regulations, codes and standards for the sector.

Côte d’Ivoire’s ambition to be the energy hub of the sub-region will require more proactive actions. The sector challenges are at three levels:

• Reinforcement of the power generation fleet and improvement of the energy mix by increasing the proportion of renewable energy to meet growing demand, particularly demand induced by real estate and industrial development prospects;
• Resolution of the financial imbalance
• Need to develop new gas fields in view of the risk of importing more expensive LNG. Given these constraints, governance should be improved in these important sectors.

Côte d’Ivoire ranked 14^th out of the 15 surveyed countries on the Regulatory Governance Indicator which assesses the level of development of regulatory framework and the scope at which the laws, procedures, standards, and policies governing the electricity sector, provide for a transparent, predictable, and credible regulator. There is an opportunity for the government to draft necessary policies to enable higher level of independence, and enhanced clarity of roles.

Furthermore, diversification of the energy mix should be pursued with a larger proportion of clean alternative energies and minimum efficiency performance standards. The country has already elaborated and enforced some regulation on energy efficiency. However minimum efficiency performance standards are supposed to be determined by the Ministry of Energy in collaboration with all the other relevant stakeholders. Therefore there is a need of assistance to draft all these standards.

Recommendations

The 2018 ERI identified regulatory gaps in all the three pillars of regulations – Regulatory Governance, Regulatory Substance and Regulatory Outcome. An analysis of the responses by ANARE to ERI survey questionnaires revealed the following gaps:

• Tariff setting guidelines and methodology: The tariff framework of the regulation is governed by the #5 Addendum of the Concession agreement with CIE. The tariff is revised by CIE. Recently four tariff revision occurred. In 2012, 2015, 2016 and 2017. However, there are no documented and published tariff guidelines and methodology. It is also best practice for tariff framework and tariff setting be controlled by the regulator.
• Quality of service Regulation (grid code): There is a mechanism for determining the affordability of tariffs in the country. This mechanism affect all the categories of customers from residential to industrial. In addition, grid connection draft regulations are under elaboration by CIE. However, there is no documented and published grid connection policy in line with the tariff setting policy. ANARE needs to be assisted in handling the grid code elaboration.
• Quality of service Regulation (capacity building): The current quality of service regulations covers only the technical performance and the quality of service performance. The enforced regulations do not cover the financial and the commercial performance. There is a need in capacity building to incorporate those missing fields of quality of service regulations.
• Technology specific PPAs: The existing regulations provide for the Regulator to be able to elaborate a template PPA model for energy sale to all the eligible consumers. However, this has not been achieved yet and furthermore there are no technology specific PPAs. Therefore it is necessary, for the development of template PPAs specific to stand-alone systems and renewable energy.
• Licensing framework: The stand-alone and remote electricity systems establishments are governed by the traditional and grid connected regulations which are not appropriate for off-grid systems. Besides, license granting is centralized at the level of the ministry. There is no simplified licensing framework for new utilities, stand-alone or remote electricity systems.

Source: ERI 2018 Publication is accessible here

National utility

General profile

CI-ENERGIES was created following the third reform of the electricity sector undertook by the government of Côte d’Ivoire in 2011. This change resulted in the dissolution and the merger of the Société de Gestion du Patrimoine du Secteur de l’Electricité (SOGEPE) and the Société d’Opération Ivoirienne d’Electricité (SOPIE), which were State-owned companies resulting from the second reform of the national electricity sector in 1998. Following decree n°2011-472 of 21 December 2011, CI-ENERGIES was entrusted with the missions and attributions of SOGEPE and SOPIE. It is important to note that Côte d’Ivoire undertook the first reform of the sector by privatizing the operations of the electricity system in October 1990. At that time, the Energie Electrique en Côte d’Ivoire was holding a monopoly on the transport, distribution, export and import of electricity, and became an assets company in charge of the management of concessions as well as the development of the sector of electricity.

Policy and strategy

CI-ENERGIES is committed to supporting the economic recovery that will make Cote d’Ivoire an emerging country by 2020 thanks to the strengthening of the national power system. The new strategic plan of CI-ENERGIES for the period 2018-2022 aims to make Cote d’Ivoire a regional energy hub, provide electricity to the population at a competitive cost, and support the utility’s financial and operational sustainability. This strategy is broken down into 6 different axes:

• Axis 1 – Adequacy between the supply and demand of electrical energy: four Master Plans will be updated by 2020 and installed capacity will increase from 2,199 MW in 2018 to 3,054 MW by 2022
• Axis 2 – Access to electricity: national coverage rate will increase from 58% in 2018 to 91.1% in 2022, access rate will increase from 89.5% in 2018 to 96.6% in 2022, and average downtime will be reduced from 22h20 in 2018 to 16h in 2019, 10h in 2020, 7h in 2021 and 5h in 2022.
• Axis 3 – Sustainable development: installed capacity from renewable energy production units will increase from 879 MW in 2018 to 1271 MW in 2022, increase proportion of renewables in the energy mix from 40% in 2018 to 42% in 2022
• Axis 4 – Development of the international and sub regional cooperation: total capacity of interconnection lines will increase from 885 MW in 2018 to 1,180 in 2020 (no further increase afterward) in order to increase the volume of exports in WAPP countries from 1,065 MW in 2018 to 2,215 MW by 2022.
• Axis 5 – Improved financial performance: overall performance of the network will increase from 80.32% in 2018 to 86% in 2022
• Axis 6 – Development of the potential of human resources and social responsibility: additional management positions will be created to improve supervision of technical staff, and internal communication will be reinforced

Production

Download Source ERI 2018 Publication is accessible here	Download Source ERI 2018 Publication is accessible here
Download SourceAfrican Development Bank analysis ; CI-ENERGIES institutional reports	Download Source African Development Bank analysis ; CI-ENERGIES institutional reports

Mapping of ongoing programmes and projects

Donors interventions:

• As part of Energos 2, the European Union is providing support to the tender offer process for the selection of IPPs, including pre-feasibility and feasibility studies, and legal and financial support across all RE technologies. More information available here.
• World Bank ROGEP has $200 million in funding to support off-grid development across 19 countries, including Côte d’Ivoire
• The German Gesellschaft für Internationale Zusammenarbeit (GIZ) is conducting a feasibility study for a 3-yr project starting at end of 2018 that would provide €5 million in technical assistance for private sector RE and energy efficiency
• The German Kreditanstalt für Wiederaufbau (KfW) is considering a guarantee mechanism for RE as part of G20’s Compact with Africa in collaboration with the African Development Bank and the European Investment Bank.
• KfW is also preparing to support rehabilitation of transmission lines to connect future solar plants in the north

Mapping of ongoing projects across the power spectrum

Although Cote d’Ivoire’s renewable energy experience has been primarily in large hydro generation, several projects are under development. Some projects are in the stage of pre-feasibility and feasibility studies, and others are in the funding stage. During the 2012 national energy seminar, the Ministry of Petroleum, Energy and Renewable Energy identified the following projects moving forward:

• Use of municipal waste and agricultural residues:
  • The SITRADE project related to the production of electricity from solid waste in the District of Abidjan: 8.3 billion CFA, of which 1.3 billion CFA will come from the state.
  • Energy production from waste treatment discharged from Anyama: 263 billion CFA, which private parties will finance.
• Producing electricity from the sun and wind
  • Electrification of rural sites using a solar PV system: 7.15 billion CFA, of which 1.8 million CFA will be financed by the state.
  • PCCI 01 solar plant (PV plant): 95 billion CFA to be privately funded.
  • Promotion of renewable energy for rural communities (promotion of renewable energy for decentralized electrification in view of the creation of activities that generate revenue in rural zones): 1.63 billion CFA, of which 400 million CFA is from the state.
  • Pilot public-lighting project by a PV system: 2 billion CFA from the state.
  • 6 MW wind project: 4 billion CFA, 1 billion CFA of which is from the state.
  • Cogeneration: 7.5 billion CFA, 2.1 billion CFA of which is from the state.
• Developing small hydroelectric plants:
  • Hydroelectric plant of Drou: 16 billion CFA, 600 million CFA of which is from the state.
  • 300 kW hydroelectric plant on the Agnéby river: 800 million CFA, 320 million CFA of which is from the state.
  • Hydroelectric planning of Aboisso-Bia: 8.6 billion CFA, to be financed by private parties.

Source: IFC, https://www.ifc.org/wps/wcm/connect/25885390-8a37-464f-bfc3-9e34aadc01b4/IFC-Cote_dIvoire-report-v11-FINAL.PDF?MOD=AJPERES

Investment opportunities for the private sector

Côte d’Ivoire has an ambitious goal to reduce its greenhouse gas (GHG) emissions by 28 percent by 2030, including a target to generate 42 percent of electricity from renewable energy by 2030 (with a breakdown of 26 percent large hydro and the other 16 percent into “other”—solar biomass, small hydro, and wind).

The country is focused on spurring economic growth and solidifying its role as an economic engine for West Africa. The government recognizes the important role of private sector investment in expanding renewable energy penetration. The main drivers of sustained growth are expected to be both public and private investments in infrastructure, opening up significant opportunities for the energy and electricity sectors.

Priority projects sponsored by the government during the Africa Investment Forum as of November 2018

• Project #1: 255MW Solar PV station, USD 295 million Download
• Project #2: 80MW Biomass station, USD 235 million Download
• Project #3: 77MW Mini-hydro station, USD 262 million Download
• Project #4: 45MW, Off-grid systems, USD 300 million Download
• Project #5: 277km ‘Green corridor’ transport line, USD 91 million Download
• Project #6: 1,500km distribution line, USD 985 million Download
• Project #7: Storage unit and LNG regasification, USD 160 million Download

Source: Presentation made by the Minister of Energy of Côte d’Ivoire during the Africa Investment Forum in November 2018, with the support of the African Development Bank

Additional investments required to meet renewable energy targets

It is estimated that even if all these projects are built, there will still be a 13% shortfall in installed renewable energy capacity to meet the 2030 goals. To achieve its targets, Côte d’Ivoire will need to consider increasing the number of high-likelihood renewable energy projects in the pipeline. According to IFC analysis, the pipeline plan should be aligned with the targets to ensure consistency and communicate the government’s objectives to investors.

Required investments to reach the 42% target of renewable energy by 2030

Gap assessment of currently planned and identified pipeline Download

Annual cost of implementing renewable energy projects from the pipeline, in USD million Download

Sample sources of concessional funding

• African Development Bank financing solutions: https://www.afdb.org/en/projects-and-operations/financial-products/
• A list of available sources are available here:  https://www.get-invest.eu/funding-database/?_search=1
• Africa Renewable Energy Fund (AREF): https://www.gogla.org/africa-renewable-energy-fund-aref
• Africa Power Platform: http://www.africanpowerplatform.org/financing/grants.html
• Seed Capital Assistance Facility (SCAF): https://www.scaf-energy.org/
• Energy access Africa: https://energyaccess-africa.com/2016/10/10/funds-available-for-energy-access-companies-and- projects-in-africa/
• Energy Africa Infrastructure Fund: https://energyaccess-africa.com/2016/10/10/funds-available-for-energy-access- companies-and-projects-in-africa/
• IRENA/ ADFD: https://www.irena.org/ADFD/Project-Facility/Funding-Offer

Contact information of local donor representations

About opportunities in the country

About private sector participation