By Franklin ASARE-DONKOH
The Economic Community of West African States (ECOWAS) Regional Electricity Regulatory Authority (ERERA), has launched its Regional Electricity Regulation Project with $2m support from the African Development Bank (AFDB) in Accra Ghana.
The Regional Electricity Regulation Project is dubbed ‘Regional Harmonization of Regulatory Frameworks and Tools for Improved Electricity Regulation in ECOWAS.”
Addressing participants of a two-day workshop held at the Central Hotel in Ghana’s capital Accra, the Manager, of Energy Policy, Regulation and Statistics, AfDB, Mr. Callixte Kambanda, said the two million Dollars (USD 2M) of technical assistance to ERERA is to develop tools and frameworks for harmonizing regulatory frameworks across the ECOWAS region.
Mr. Kambanda was of the view that the project could not have come at any better time than now when there have been elevated calls for the pooling of the diverse energy resources of Africa at regional and continental levels.
He mentioned the African Single Electricity Market (AfSEM) initiative being championed by the African Union Commission (AUC) as a key initiative that is aimed at integrating the various regional markets into a continental power market to further boost electricity exchange.
“An integrated power market will help shape Africa’s energy transition pathway. This is because it will allow the sustainable and cost-effective exploitation of the diverse energy resources of the continent especially renewable energy, in more endowed countries and shared with less endowed countries.
It is worth noting that, a consistent and coordinated approach to addressing key regional energy infrastructure deficits, particularly regional interconnections, supported by relevant Institutional, Policy, and Regulatory Reforms at the regional level will be required to achieve a fully integrated, competitive, and harmonized electricity market in Africa as envisaged under the AfSEM.
While the Bank continues to finance key power interconnectors across the continent to boost cross-border power flow, we also recognize the importance of the soft infrastructure aspect including policy, regulatory and institutional frameworks. The AfSEM will transcend multiple regional and national jurisdictions which calls for harmonization of policies, legislation, regulatory and institutional frameworks especially at the regional levels to enhance greater coordination and cooperation as well as remove barriers to cross-border trade and investments.” Portions of his speech read.
According to the Manager, of Energy Policy, Regulation and Statistics of AfDB, the Bank’s flagship report – the Electricity Regulatory Index for Africa (ERI) recommended intensified efforts at the regional level for regulatory harmonization.
For this reason, the AfDB has, therefore, embarked on this programmatic technical assistance to support regional entities in developing appropriate tools and frameworks and build capacities for the harmonization of regulatory frameworks. I am delighted to mention that, in addition to this ECOWAS project, the Bank is funding similar regulatory harmonization initiatives in SADC, COMESA, and ECCAS. The synergies between these parallel initiatives will dovetail into an integrated continental power market. He added.
On his part, the Chairman of the ECOWAS Regional Electricity Regulatory Authority (ERERA), Mr. Kocou Laurent Rodrigue Tossou called on the participants to reflect on the vision that unites them: a vision of a West Africa where electricity is not merely a commodity but a catalyst for sustainable development, economic growth, and improved livelihoods for residents of the ECOWAS area.
“In recognising this shared aspiration, we acknowledge that the challenges we face are substantial, but equally, the opportunities that lie before us are vast and promising.
The energy sector plays a central role in driving economic development, and it is our responsibility to ensure that this essential resource is exploited efficiently, equitably, and sustainably.” He explained.
Mr. Rodrigue Tossou assured the gathering that throughout the project, ERERA, in collaboration with the African Development Bank, is committed to fostering the regional harmonization of regulatory frameworks and tools. “This initiative aims to create an environment that encourages cross-border collaboration, investment, and innovation, ultimately paving the way for a more reliable, affordable, and sustainable energy supply.
The primary objective of this project is the drive toward harmonizing electricity regulations across the ECOWAS region. This strategic alignment of regulatory frameworks seeks to address the challenges laid by unaligned systems and standards that may impede the seamless flow of electricity across borders. Through a collaborative effort to synchronize and streamline regulations, we aspire to eliminate unnecessary barriers that hinder the efficient exchange of energy resources.
Essentially, the harmonization of regulations is a proactive step toward creating a unified energy market within ECOWAS. It is a commitment to breaking down silos, fostering collaboration, and promoting a shared vision of regional energy security. As we work towards this common goal, not only are we promoting economic integration but also laying the groundwork for sustainable development that transcends national borders.
As we embark on this journey, let us recognize the critical role that regulation plays in shaping the energy sector. Effective and harmonized regulations are the bedrock upon which a resilient and integrated energy market is built. By aligning our frameworks and tools, we strive to eliminate barriers, promote fair competition, and create an environment that attracts investments, ultimately benefiting the people of our region,” Mr. Rodrigue Tossou noted.
