Please activate JavaScript!
Please install Adobe Flash Player, click here for download

ECOWAS Status Report

RENEWABLE ENERGY AND ENERGY EFFICIENCY STATUS REPORT 2014 | 15 The enactment of the ECOWAS Renewable Energy Policy (EREP) and the ECOWAS Energy Efficiency Policy (EEEP) highlights the strong commitment that ECOWAS Member States have made to develop their sustainable energy sectors. Through these policies, Member States have committed to a host of ambitious regional energy development goals. At the national level, Member States have already begun incorporating sustainable energy development into their policymaking process and are strengthening their commitments by developing National Renewable Energy Action Plans (NREAPs). As of early-2014, 13 Member States had adopted some form of renewable energy support policy, 13 Member States had a renewable energy target in place, and all 15 Member States had at least one policy or one target at the national level, promoting renewable energy technology developments. Throughout ECOWAS, renewable energy targets have been an important tool for charting an ambitious path forward for the sustainable energy sector at the national and regional levels. Targets have taken many forms and focussed on many different aspects of energy development, including expanding energy and electricity access, increasing renewable power, and improving energy efficiency. Renewable energy support policies also take many forms and addressdifferentbarrierstorenewableenergydevelopment.Pricing instruments—such as feed-in policies or fiscal incentives—as well as quantity instruments—including renewable portfolio standards (RPS)—can provide a strong incentive to project developers. As is the case worldwide, the majority of renewable energy support policies in ECOWAS continue to focus on the electricity sector. Feed-in policies remain the most commonly used policy support mechanism, currently implemented in 71 countries and 27 states/ provinces worldwide. In 2011, Ghana became the first ECOWAS Member State to establish a feed-in tariff (FIT) for renewable energy. As of early-2014, FITs had been adopted in two Member States—Ghana and Nigeria—and are currently being developed in the Gambia and Senegal. In 2011, Cabo Verde became the first and only, as of early-2014, ECOWAS Member State to adopt a net metering policy. The policy was inaugurated with the connection of a 9.9 kilowatt (kW) solar PV system installed on ECREEE headquarters. Provisions for the Gambia’s proposed FIT and net metering policies are included in its proposed Renewable Energy Act 2012, which has yet to be adopted. To date, quantity instruments have played a lesser role in the region’s renewable energy policy mix. Ghana mandates its Public Utilities Regulatory Commission to develop quotas for the purchase of renewable power by electricity distribution companies and bulk consumers, while Senegal mandates that its national electric company deploy renewables in its concession areas. Throughout ECOWAS, financial instruments are the predominant means of supporting the renewable energy sector and are in place in 13 Member States. Tax incentives take a number of forms, including investment or production tax credits, as well as reduction or elimination of taxes such as import duties, sales, and value-added tax (VAT). Import duties on renewable energy components have been reduced or removed in Burkina Faso, Ghana, Mali, and Nigeria, while value-added tax reductions for renewable energy projects have been established in Burkina Faso, Ghana, and Mali. In addition, Benin, Cabo Verde, Côte d’Ivoire, the Gambia, Guinea, Guinea-Bissau, Niger, Senegal, and Togo all offer some form of tax incentive for renewable energy. In Ghana, Mali, Nigeria, and Senegal additional financial support has come from public financing mechanisms such as public investment, project grants or low interest loans. Tendering or auctions for renewable energy projects have also attracted policymakers’ attention in recent years because of their potential to identify the most cost-effective project development plans. Both Burkina ENERGY EFFICIENCY IMPROVEMENTS ARE AMONG THE MOST COST-EFFECTIVE SOLUTIONS FOR OFFSETTING THE RISING ENERGY COSTS, UNPREDICTABLE AND UNCERTAIN ENERGY SUPPLY, AND GROWING DEMAND FOR ENERGY SERVICES FACED BY ECOWAS MEMBER STATES. EXECUTIVE SUMMARY POLICY

Pages Overview