30 OCTOBER 2019 Ministry of Energy Republic of

Transcript:30 OCTOBER 2019 Ministry of Energy Republic of:
30 OCTOBER 2019 Ministry of Energy Republic of Sierra Leone STRATEGIC PRIORITIES FOR THE ENERGY SECTOR Overview Presentation of Key staff Presentation structure Strategic priorities Sustainable electricity generation and supply priorities in the short, medium and long term Develop and implement an integrated electricity plan that combines generation, distribution and transmission Identify Externally Funded projects (IPP) for power supply Outline a realistic plan to address EDSA’s Commercial and technical losses Strategic priorities 1. Sustainable electricity generation and supply priorities in the short, medium and long term Key Policy Action: Ensure power supply all year around Policy statement: GOSL will provide low cost and flexible thermal capacity to ensure power supply backup during dry season Rationale: Contracting Karpowership enabled GOSL to ensure power supply all year around, especially during dry season which was marked by severe load shedding Challenge: Karpowership is increasing the short-term cost of supply and should be compensated with (i) low cost solar PV generation capacity, (ii) efficiency gains at EDSA and (iii) tariff increase Opportunity: Karpowership is the best immediate proposition with regards to capacity increase and cost mitigation. Lower cost alternatives (LNG, coal, …) are being explored by MOE. Strategic priorities 1. Sustainable electricity generation and supply priorities in the short, medium and long term Key Policy Action: Deliver least cost generation capacity mix and import Policy statement: GOSL plans for developing least cost generation mix with optimal use of national resources and regional trading opportunities in order to match the national demand Rationale: Electricity demand is increasing at a rate of 10+% Additional demand will be met by additional supply capacity (generation and import) Large scale hydro generation capacity is the least cost option (< USct 11 per kWh) but will require at least 5 years to build. It is only a long-term option (mid-term opportunity: rehabilitating Goma hydro power station) Large scale solar PV generation capacity (USct 9-11 per kWh) will substitute to thermal generation capacity (USct 13-18 per kWh). Solar PV is a mid-term option (2021-2022) that could also be mobilised in the short-term (2020-2021) if a fast track procurement process is formulated. Strategic priorities 1. Sustainable electricity generation and supply priorities in the short, medium and long term Rationale (cont’d): Import is the only short-term option (2020) thanks to the commissioning of CLSG Transco in June 2020. The current PPA is sourcing import from gas power plant in Cote d’Ivoire at a