With the third-largest electricity system in West Africa, the Ivorian government is working towards making the country a regional electricity hub, and through the utilization of public-private partnerships (PPP) as well as the maximization of gas and renewable energy, the country is well on its way to achieving this goal.
State of Play of Ivory Coast’s Power Market
Ivory Coast plans to achieve universal energy access by 2025, with demand expected to grow by more than 1,000 MW to 2,430 MW in the same year.
As of 2021, Ivory Coast had an installed capacity of 2,269 MW, with roughly 61% (1,390 MW) generated by thermal power and the remaining 39% (879 MW) generated by hydroelectric dams.
Electricity access is widespread – the national overall rate is 64%, one of the highest in the subregion, and the average operational capacity of the installed energy infrastructure has reached 87%. This exceeds peak demand by approximately 11%. Not only does the country have the capability to meet its domestic electricity needs, but it also exports surplus power to eight other African nations – Ghana, Togo, Benin, Burkina Faso, Mali, Sierra Leone, Guinea-Conakry and Liberia. The secret behind the impressive electrification rate in Ivory Coast lies in three key policies that have been implemented: PPP models, gas-to-power generation, and investment in renewable energies.
Public Private Partnerships
From the early 1990s, the Ivorian State began to prioritize private sector participation, and in the electricity sector, this decision translated into several reforms, with focus placed on utilizing PPP models. Currently, there are two independent power producers, CIPREL and AZITO, bound by ‘take or pay’ contracts with the government. CIPREL operates a 333MW gas-powered plant under a Build, Operate, and Transfer model, while AZITO operates a 390MW gas-powered plant under a Build, Own, Operate, and Transfer model.
Today, private operators in Ivory Coast are responsible for 70% of energy production and 100% of its distribution. The grid is expected to cover 99% of the population by 2035, with PPP models playing a major role in expanding electrification and grid connection.
Gas-to-Power Generation
Ivory Coast is committed to maximizing natural gas for power generation, recognizing the opportunity the resource holds for sustainable power supply. Currently, the country derives 75% of its electricity from thermal energy, with the remainder supplied by hydroelectric dams. By 2030, the country hopes to utilize gas for 32% of its energy mix, and several projects are already underway across the country.
The AZITO power station, built in 1999 and supplying one-third of the country’s energy, uses natural gas produced off the coast of Ivory Coast. In 23 years, the project’s capacity has grown nearly fivefold. After investing in new steam turbines in 2013, Ivory Coast became the first African country to use the combined-cycle system. This greener technique creates more power at a lower cost by recycling exhaust emissions. As new discoveries are made offshore, opportunities for expanding gas-to-power are promising.
Transitioning to Green Energy
The Ivorian government is also working to develop and diversify its energy-producing sources, with the objective of obtaining 42% of its power from renewable sources by 2030. To date, Ivory Coast has inked agreements to develop two solar projects with the Emirati businesses Masdar and Amea Power, with capacities of 70 MW and 87 MW, respectively.
Among other anticipated projects is a concession deal signed by the French national power firm EDF with the Ivorian government in December 2019 through BIOVEA Energie, a joint venture with partners Meridiam and Biokala. The contract calls for the design, finance, building, and operation of a 46 MW biomass power plant, the biggest in West Africa, fueled by agricultural waste. The plant will run on palm leaves sourced from local cultivation, with 70% of the feedstock obtained from 12,000 village farmers.
The MSGBC Oil, Gas, & Power 2023 conference and exhibition, which will be held in Nouakchott on November 21–22, will have a panel discussion that explores how gas and renewable energy utilization can maintain a dependable and sustainable energy supply while fulfilling net-zero objectives in West Africa. The discussion will center on the future of natural gas as a key energy source, given the growing emphasis on renewable energy and decarbonization, as well as new technologies and research. Ivory Coast can be considered as a model in these two specific areas.
