How would you summarise 2016 for the energy sector in Senegal?
2016 was the year of expansion for Senegal’s energy sector. Indeed: in February, the Tobène electrical plant was started at Taiba Ndiaye, 90 kilometres north-east of Dakar; in June, the Cap des Biches power plant at Rufisque (20 km from Dakar) was officially re-opened; and finally in October, the Bokhol solar power plant with a capacity of 20 MW, the largest solar power plant in West Africa, was inaugurated.
Have the recent changes in oil prices had an impact on the sector in Senegal?
The fall of oil prices from 2014 to 2016, combined with the increase of energy capacities because of the new solar power plants, had a positive impact in Senegal. It is materialised by a 10% reduction in the price of electricity that reflected in the new tariff schedule approved by the Electricity Sector Regulation Commission (ESRC) on February 16, 2017 by Decision No 2017–04.
Have there been any developments in the clean energy sector in Senegal – ie: investment levels, government incentives etc.?
Senegal impressively developed the solar energy sector. The Government’s objective by the end of 2017 is to obtain 20% clean energy in the grid. This objective is totally achievable because different solar power plants will be opened by the end of the year. This development is possible because clean energy is one of the sectors promoted by the Investments Code. Investing in clean energy sector under the Investments Code grants tax and customs exemptions, possibility to sign fixed-term employment contracts for a certain duration, protection against appropriation and nationalisation, equal treatment with local companies, profit repatriation, etc.
Does the transition towards more renewable energy create any particular challenges or opportunities in Senegal?
The transition to more renewable creates lot of opportunities:
- lower again the prices of electricity,
- help more people access to electricity (45% of the population has no access to electricity, 20% in the cities and 60% in rural areas),
- lower the support of the Government to the electricity distribution company SENELEC (in 2014 SENELEC received 123 billion CFA from the Government and 61 billion in 2016),
- higher the profits of SENELEC (SENELEC made 30 billion CFA profit in 2016),
- lower the money invested in buying crude oil;
- lower CO2 emissions from SENELEC
Are there any changes to legislation expected in the next 12 months?
Yes, the new petroleum code is supposed to be passed by end of the year.
Do you have any predictions relating to the energy sector for the coming 12 months?
According to SENELEC, different other solar power plants will be opened in the next months. The first will be Santhiou Mékhé (region of Thiès) 29,5 MW, the second Kahone (region de Kaolack) 20 MW, the third Sakal (region of Louga) 20 MW and the one Dias (region de Dakar) 15 MW. The total capacity of these solar power plants will be 113,5 MW.
Is there anything else you would like to add?
Senegal has recently discovered offshore oil and gas and will become one of the most important oil and gas country in West Africa. This will positively impact the energy sector.
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