TOGO: Power Supply Diversification through RE IPPs and Financial Impact to the Utility

Heavily relying on electricity supply from neighboring countries, 95 percent of Togo’s electricity was imported from Nigeria and Ghana through the interconnections of the Benin-Togo utility, Communauté Electrique du Benin (CEB). However, power imports were under stress periodically due to bad hydrology, unavailability of gas, or operational constraints. In order to provide additional capacity as demand for electricity services continues to grow quickly at an expected rate of around 8 percent per year, the  Government of Togo (GoT) recently authorized a second thermal IPP, ERANOVE, to develop 65 MW of Combined Cycled Gas Turbine (CCGT). In this context, PPIAF supported the Government in assessing the attractiveness of RE IPP in the power sector of Togo and identifying best practices for Power Purchase Agreements related to RE IPPs. The PPIAF activity provided analysis on the impact of IPPs, including renewable energy, on the financial situation of CEE. The policy note on the sustainability of the RE IPP report has informed the discussion on the IFC scaling solar project and the World Bank’s decision to allow IFC to use PSW instead of PRG for the Guarantee. The report will also be relevant to the policy dialogue about the medium- and long-term financial viability of CEET, including the question about tariff adjustment.