Challenge
Achieving universal electricity access is a global challenge and an urgent priority in Sub-Saharan Africa. In Western and Central Africa, only 52 percent of the population had access to electricity in 2020. Major obstacles include insufficient electricity supply due to weak institutional capacity, inefficient electricity markets and power utilities, and high power generation costs from reliance on thermal generation from burning oil, coal, and other fuels. These issues hinder the delivery of social services, the operation of businesses, income generation, and the region’s economic transformation.
Approach
The World Bank Group’s regional integration approach in the energy sector in Africa supports the development of more efficient and resilient regional electricity markets (power pools) through the WAPP master plan. The master plan covers the entire WAPP region (from Nigeria to Senegal) and includes regional priority generation and interconnector projects. While it includes a long list of projects, far more than North Core, CLSG, OMVS and OMVG, WAPP is involved in the preparation and implementation of only a select few. The key benefits of regional pools include:
- Reducing electricity supply costs: Regional pools facilitate regional trade, which is how cheaper generation sources can displace more expensive generation sources;
- Improving security of supply: Connection of a wider set of diverse generation resources; and
- Allowing economies of scale to be captured, particularly in RE generation: Larger power stations that are too big for the small national power markets of West Africa can be developed, including hydro and solar PV.
The World Bank Group is working to reach these benefits by investing in power generation and cross-country electricity interconnections and supporting policy and regulatory harmonization to facilitate cross-border electricity trade. These efforts help reduce costs, improve system efficiency, and enhance resilience. One report estimated that regional integration of the energy sector could save African countries $40 billion in capital spending,1 highlighting the significant benefits of integrating national grids into regional power pools. The World Bank Group also supports renewable energy by strengthening technical capacity for large-scale hydropower and solar energy projects and their integration into the regional grids.
Results: Year Launched – Year Closed
The World Bank Group’s support to the WAPP has enabled the construction and operationalization of more than 4,000 km of 225-330 kV transmission lines, connecting sub-Saharan countries from Senegal to Nigeria and benefiting over 18 million people as of October 2024. Between 2012 and 2024, four priority projects from the WAPP Master Plan have received support from IDA, resulting in significant impacts. These projects collectively enhance electricity access, address current energy challenges and future growth prospects, and promote the regional electricity market in West Africa.
- Completed in 2022, the CLSG has supported the construction of 1,303 km of 225 kV power lines and 11 substations, facilitating cross-border electricity trade and expanding access to affordable electricity in all four countries. Imports from the CLSG enable both Liberia and Sierra Leone to meet growing demand while replacing high-cost thermal generation, positively impacting the fiscal situation in both countries. In 2023, CLSG’s direct beneficiaries were estimated at 2.8 million people. As an exporter of clean hydro, Côte d’Ivoire has benefited from increased revenues.
- The completion of a 228 km 225 kV transmission line connecting Kayes in Mali and Tambacounda in Senegal under the OMVS Transmission Expansion project has significantly improved electricity networks in participating countries, particularly in Senegal. This project has increased the share of clean energy in OMVS countries, promoted energy exchange between the countries, and ensured the transit of national electricity entities’ quotas from three power plants. The project has reduced power outages by an average of 30 percent, increased Senegal’s annual hydropower energy imports from Mali, and reduced greenhouse gas emissions by about 3 million tCO2. Additionally, it has supported women’s economic empowerment, benefiting about 4,000 women in 18 municipalities, and improved livelihoods for approximately 400,000 people.
- The OMVG Interconnection project extended 1,677 km of 225 kV line across the countries of the Guinea River Basin Development Organization (OMVG) and is promoting cross-border electricity trade and enhancing energy security across 12 countries. It has established a comprehensive regional transmission network and facilitated the development of larger hydropower generation projects. As a result, Guinea-Bissau has transitioned from relying entirely on expensive heavy fuel oil (HFO) from rental power to 100 percent hydroelectricity imported from Guinea. Senegal is now exporting electricity to The Gambia and Guinea-Bissau and importing from Guinea through bilateral power trade contracts. The interconnection has enabled a total power trade capacity of 800 MW, which is eight times the current peak load of The Gambia, improving service reliability for more than 2.5 million households and businesses.
- The North Core Interconnection Project’s main component, the construction of a 913 km 330/225 kV transmission line and seven substations, will reduce wholesale electricity costs by 40 percent, and electrify hundreds of thousands of households, schools, hospitals, and businesses. As of October 2024, the project has delivered electricity to over 30,000 people in rural Burkina Faso, including 15,000 women. The project aimed at delivering electricity to 1.2 million new rural beneficiaries in Niger and Burkina Faso, is part of broader efforts to enhance rural electrification in these regions. The project has completed 38.5 percent of the transmission line and seven substations. One subcomponent, a 117 km interconnection in Benin, is now completed, enabling countries from Nigeria in the east all the way to Côte d’Ivoire in the west to trade up to 500 MW of electricity.
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