Eng. David M. Mwangi

Independent Energy Consultant

Kenya

RegionalInterconnectivity & Cross Border Trade Networks:An EAPP Update

Outline of the Presentation

• EAPP member countries• Existing power interconnections in the region• Road map for regional power market• Planned interconnections• Ongoing institutional capacity building

programmes• Critical pending issues• Summary

EAPP MEMBER COUNTRIES

Member Countries (9):

Libya, Egypt, Sudan,Ethiopia, Kenya, Tanzania, Rwanda, Burundi, DRC,

Potential Members (3):Djibouti, Eritrea, Uganda.

Existing Interconnections

• Existing Interconnections as at August 2012�DRC-Burundi, DRC-Rwanda and Burundi-

Rwanda associated to Ruzizi II (45 MW), 110kV and 70kV Single Circuit

�Kenya-Uganda Interconnection, 132kV Double Circuit

�Ethiopia-Sudan, 230 kV Double Circuit�Ethiopia-Djibouti, 230 kV Double Circuit

Existing SINELAC Interconnector

• DRC, Burundi and Rwanda associated to Ruzizi II (45 MW)

G45MW

70kV

110kV

Existing Kenya -Uganda Interconnector

• Kenya Uganda Interconnection– In Operation since 1958

132kVDouble Cct

Existing Ethiopia-Sudan Interconnector

– Ethiopia - Sudan (Completed 2012)

230kV, 290MWDouble Cct

Currently only 100MW is Contracted from Ethiopia

Existing Ethiopia -Djibouti Interconnector

• Ethiopia-Djibouti– Completed and tested 2012

230kV, 950 kmDouble Cct

Regional Power Market: The Road MapRegional Power Market: The Road Map

Preliminary

Stage

Stage #1

Transitional

2013

Stage #2

Transitional

2016/7

Stage #3

Final

2021

MarketCurrent.

Country to country

Mostly between neighbouring

countries

Between any pair of countries

Fully trading environment

Previous arrangements

• Previous arrangements • Bilateral Market [BTA]• Balancing Mechanism

(TSOs)

• Previous arrangements • Bilateral Market [BTA]• Spot Market• Balancing Market

Liquid MarketTransactions

Market Participants

Single buyer in each country

• Single buyers• IPPs & eventually

Multiple sellers- buyers (in unbundled countries)

• Multiple sellers-buyers& eventually

• Single buyers

• Single buyers& eventually

• Multiple sellers- buyers

RRC with few functions but empowered

RRC evolves as Market . Full staff by the end of Stage #1

RRC fully established

regarding staff

Same asStage #2

Regional Regulator

By the countries taking into account

future regional developments

• Regional Indicative Planning

• Countries encouraged to take into account in their MPs the regional planning

Same asStage #1

• Regional Indicative Planning

• Private Investors & utilities more interested in identified projects

Regional Planning

� EAPP plans to attain full fledged power market in four stages

� Interconnection and generation projects in progress

� Institutionaldevelopment also progressing

Planned Interconnectors - EAPP Trade Zone 1

Uganda-Rwanda, 220KV, 2014

DRC-Uganda,220KV, 2015

DRC-Rwanda, 220KV, 2014

Rwanda-Burundi 220KV, 2020

DRC-Burundi,220KV, 2020

DR CONGO

UGANDA

RWANDA

BURUNDI

220KV TX/RW/BRD/DRC- Rusumo Falls, Ruzizi III and IV Interconnector Expected

Planned Interconnectors• EAPP Trade ZONE 1

Interconnector Capacity(MW) KV TechnologyYear expected to be

in Operation

UG-RW 300 220 AC 2014

RW-DRC 400 220 AC 2014

UG-DRC 300 220 AC 2015

DRC-BRD 300 220 AC 2020-2030

BRD-RW 300 220 AC 2020

TZ,RW,BRD,DRC 220 AC Rusumo Falls Interconnection

Planned Interconnectors - EAPP Trade Zone 2

Trade Zone 2Uganda-Tanzania, 220KV, 2016

Uganda-SouthSudan,400KV,2020

Kenya –Uganda,220KV,2014

Kenya-Tanzania,400KV, 2015

Kenya-Uganda,400KV,2036

SOUTH SUDAN

TANZANIA

KENYAUGANDA

Planned Interconnectors• EAPP Trade ZONE 2

Interconnector Capacity(MW) KV TechnologyYear expected to be in Operation

UG-South Sudan 1000 400 AC 2020*

UG-KE 300 220 AC 2014

TZ-KE 1500 400 AC 2015

TZ-UG 400 220 AC 2016*

UG-KE 800 400 AC 2036*

Planned Interconnectors - EAPP Trade Zone 3

• EAPP Trade Zone 3Sudan-Ethiopia,500KV,2022

Ethiopia-Kenya, 500KV,2015

Sudan-Egypt.600KV,2025

Kenya-Ethiopia,500KV,2020

Ethiopia –Eriteria, 220KV,2024

Ethiopia-Somaliland,200KV,?

Planned Interconnectors• EAPP Trade ZONE 3

Interconnector Capacity(MW) KV TechnologyYear expected to be

in Operation

ETH-KE 2000 500 DC 2016 (1000MW)

ETH-KE 2000 500 DC 2020

ETH-SUDAN 1200 500 AC 2022

ETH-Eriteria 400 220 AC 2024

Sudan-Egypt 2000 600 DC 2025

ETH-Somaliland ? 220 AC ?

CountryCountryCountryCountry Plant NamePlant NamePlant NamePlant Name Type Type Type Type Inst. Cap (MW)Inst. Cap (MW)Inst. Cap (MW)Inst. Cap (MW)

Eastern DRC Ruzizi III Hydro 145

Ruzizi IV Hydro 287

Ethiopia

Mandaya Hydro 2000

Gibe III Hydro 1870

Border Hydro 1200

Gibe IV Hydro 1468

Karadobi Hydro 1600

Rwanda KivuI Methane 100

Kivu II Methane 200

Tanzania Stieglers Gorge (I, II, III) Hydro 1200

Uganda

Karuma Hydro 700

Ayago Hydro 550

Murchison Falls Hydro 750

Identified Regional Generation Projects –NGP_RIP

INSTITUTIONAL CAPACITY BUILDING PROJECTS - 1

EC Technical Assistance & Capacity Building Project - EUROS 2.7m

�Objective is to strengthen the capability of Objective is to strengthen the capability of Objective is to strengthen the capability of Objective is to strengthen the capability of the EAPP Permanent Secretariatthe EAPP Permanent Secretariatthe EAPP Permanent Secretariatthe EAPP Permanent Secretariat

�Project constitutes the following componentsProject constitutes the following componentsProject constitutes the following componentsProject constitutes the following components

� Preparation of the Eastern Africa Power Preparation of the Eastern Africa Power Preparation of the Eastern Africa Power Preparation of the Eastern Africa Power Market DevelopmentMarket DevelopmentMarket DevelopmentMarket Development

� Preparation of a strategic plan and a 5 year Preparation of a strategic plan and a 5 year Preparation of a strategic plan and a 5 year Preparation of a strategic plan and a 5 year business planbusiness planbusiness planbusiness plan

� Preparation of Preparation of Preparation of Preparation of power market rules and power market rules and power market rules and power market rules and agreements for crossagreements for crossagreements for crossagreements for cross----border tradeborder tradeborder tradeborder trade

INSTITUTIONAL CAPACITY BUILDING PROJECTS - 2

Regional Master Plan & Grid Code Study Regional Master Plan & Grid Code Study

(AfDB/NEPAD IPPF) (AfDB/NEPAD IPPF) -- US$11.7m

�Objective was to develop EAPP/EAC Power Master Objective was to develop EAPP/EAC Power Master Objective was to develop EAPP/EAC Power Master Objective was to develop EAPP/EAC Power Master Plan & common Grid Code and train staff to enable Plan & common Grid Code and train staff to enable Plan & common Grid Code and train staff to enable Plan & common Grid Code and train staff to enable them update the master plan in futurethem update the master plan in futurethem update the master plan in futurethem update the master plan in future

�The project is completed and the Power Master The project is completed and the Power Master The project is completed and the Power Master The project is completed and the Power Master Plan and Grid Code final report submitted in May Plan and Grid Code final report submitted in May Plan and Grid Code final report submitted in May Plan and Grid Code final report submitted in May 2011201120112011

ONGOING INSTITUTIONAL CAPACITY BUILDING PROJECTS - 3

� Recruitment of staff for the CC and IRB Recruitment of staff for the CC and IRB Recruitment of staff for the CC and IRB Recruitment of staff for the CC and IRB ---- completedcompletedcompletedcompleted

� Installation and operationalization of the data base in Installation and operationalization of the data base in Installation and operationalization of the data base in Installation and operationalization of the data base in progressprogressprogressprogress

� Installation and operationalization of the Communications Installation and operationalization of the Communications Installation and operationalization of the Communications Installation and operationalization of the Communications Infrastructure Infrastructure Infrastructure Infrastructure ---- postponedpostponedpostponedpostponed

� Facilitation of Institutional set up of the CC and the IRBFacilitation of Institutional set up of the CC and the IRBFacilitation of Institutional set up of the CC and the IRBFacilitation of Institutional set up of the CC and the IRB

� Recruitment of Data Base Consultant Recruitment of Data Base Consultant Recruitment of Data Base Consultant Recruitment of Data Base Consultant ---- completedcompletedcompletedcompleted

� Recruitment of Training Consultant Recruitment of Training Consultant Recruitment of Training Consultant Recruitment of Training Consultant ---- completedcompletedcompletedcompleted

� Recruitment of Management Consultant Recruitment of Management Consultant Recruitment of Management Consultant Recruitment of Management Consultant –––– completedcompletedcompletedcompleted

� Training of 0ver 60 experts (Secretariat Staff and utility representatives) on issues of regional power trade

Ministry of Foreign Affairs Norway Project Ministry of Foreign Affairs Norway Project --

USD 2.2MUSD 2.2M

ONGOING INSTITUTIONAL CAPACITY BUILDING PROJECTS - 4

�Market development workshop held on 1-5 February 2009

�Renewable and Energy Efficiency Workshop held in March 2010

�Additional support to EAPP and EAC to prepare for Power Market and Power Trade.

�To ensure at least 3 PPAs are concluded

�Draft Transmission Interconnection Standards being considered by the Technical Committees and REC;

�Gap Analysis

USAID : Powering Progress PROJECT USAID : Powering Progress PROJECT -- 2.4m 2.4m

US$US$

INSTITUTIONAL CAPACITY BUILDING PROJECTS - 5

� Approval and implementation of Harmonized Approval and implementation of Harmonized Approval and implementation of Harmonized Approval and implementation of Harmonized Transmission Standards as identified by the Grid Transmission Standards as identified by the Grid Transmission Standards as identified by the Grid Transmission Standards as identified by the Grid CodeCodeCodeCode

� Study tours to PJM and WAPPStudy tours to PJM and WAPPStudy tours to PJM and WAPPStudy tours to PJM and WAPP

� Implementation of Regulatory Regime in line Implementation of Regulatory Regime in line Implementation of Regulatory Regime in line Implementation of Regulatory Regime in line with MFA, AfDB and EC Projects. with MFA, AfDB and EC Projects. with MFA, AfDB and EC Projects. with MFA, AfDB and EC Projects.

� Development of IDSDevelopment of IDSDevelopment of IDSDevelopment of IDS

USAID 2.4mUSD : Powering Progress USAID 2.4mUSD : Powering Progress

Project contd.Project contd.

CRUCIAL PENDING TASKS 1

�Harmonization of transmission standards is required to expand trade

�Implementation of the Regional Grid Code

�Cooperation from development partners, and participation of private and public utilities required to realize master plan (Through PPP, IPP?).

�Progressing capacity building until commencement of power market

�Supporting EAPP Secretariat until it is self sustaining

CRUCIAL PENDING TASKS 2

� Gap Analysis and filling the Gaps on ability to

trade in each Countries

� Full Establishment of the Coordination Centre (Regional Market Operations Centre)

� Full Establishment of an Independent Regulatory board (IRB)

� Staff attraction and retention (after the current training by EC & MFA)

� Full commitment by Regional Players

CONCLUSIONS

� Several power interconnections projects in

EAPP region are at various stages of implementation

�Most projects’ implementation has slipped -originally expected to be completed by 2012

� EAPP region now expected to be substantially interconnected by 2016/17 to facilitate regional power trade

�Various projects for institutional and human capacity building are either completed or are ongoing

� Some crucial tasks are pending and need to be addressed

Presenter’s Contact Details

• For any additional information, please do not hesitate to contact:

Eng. David M. MwangiEnergy ConsultantEmail: dmwangi55@yahoo.comEmail: dmmwangi55@gmail.comPhone: +254 20 8085287Mobile: +254 714 610026 / +254 722 741601Skype name: dmmwangi55

Thank You

for your attention