ERERA, AfDB launch $2 million project to improve electricity regulation in ECOWAS states

The ECOWAS Regional Electricity Regulatory Authority (ERERA) with the support of the African Development Bank (AfDB) has launched a two-million-dollar project to improve electricity regulation in ECOWAS member states.

Dubbed: “Regional Harmonisation of Regulatory Frameworks and Tools for improved Electricity Regulation in ECOWAS", this collaborative project aims to elevate electricity regulation standards within the ECOWAS member states, fostering optimised utilisation of the regional energy infrastructure and stimulating enhanced electricity trade in the region.

Through the support of the AfDB, ERERA will assist national regulatory bodies in acquiring adequate knowledge that would enable them to carry out the necessary regulatory work in developing the regional market at the national level.

Specifically, the grant will fund technical assistance to promote the development and adoption of regional electricity regulatory principles, enhance capacity to monitor utility performance across the ECOWAS region, conduct a cross-border analysis of electricity tariffs, and develop a centralised database management system.

Speaking at the launch on Thursday, December 14, 2023 in Accra, the ERERA Chairman, Mr Laurent Tossou, commended the African Development Bank for it’s “unwavering support and commitment” to the project, adding that the Bank’s “partnership is a strong example to the spirit of collaboration that is vital for overcoming the complex challenges facing our region”.

“Together, we are not only building a more interconnected energy grid but also strengthening the foundations for sustainable development and shared prosperity”, he said.

He gave an assurance that through the project, ERERA was committed to fostering the regional harmonisation of regulatory frameworks and tools as the 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.”

Mr Tossou indicated that the harmonisation of regulations was a proactive step toward creating a unified energy market within the ECOWAS space, adding that ERERA would be responsible for the project's implementation, coordination, and monitoring.

He was of the view that by implementing efficient regulatory practices, the initiative seeks to pave the way for improved management of regional energy resources.

For his part, the AfDB’s Manager for Energy Policy, Regulation and Statistics, Mr. Callixte Kambanda, said the African Single Electricity Market (AfSEM) initiative being championed by the African Union Commission (AUC) aims to integrate various regional markets into a continental power market to further boost electricity exchange. 

He therefore described the launch of the project as timely, considering the “elevated calls for pooling of the diverse energy resources of Africa at regional and continental levels”.

For him, “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 harmonised electricity market in Africa as envisaged under the AfSEM”.

Mr. Kambanda explained that the Electricity Regulatory Index for Africa (ERI), which is the Bank’s flagship report, recommended intensified efforts at the regional level for regulatory harmonisation.

This, he explained, was why the Bank had embarked on “this programmatic technical assistance to support regional entities to develop appropriate tools and frameworks and build capacities for harmonisation of regulatory frameworks.”