TENTH AFRICAN OIL & GAS TRADE AND FINANCE CONFERENCE El Aurassi Hotel, Algiers 2-5 April 2006 Regional Energy Integration in Africa – An Input from WEC in Africa – An Input from WECBy Michel Claude LOKOLO Ministry of Energy - CAMEROON NOT AN OFFICIAL UNCTAD RECORD

About WEC WEC - World Energy Council Multi-energy organisation;Multi-energy organisation; Founded in 1923; Headquarter = London;Founded in 1923; Headquarter = London; Mission - “promote sustainable supply and use of energy for the greatest benefit of all”;Mission - “promote sustainable supply and use of energy for the greatest benefit of all”; Members = national committees;Members = national committees; 96 member country committees;96 member country committees; 22 Committees in Africa;22 Committees in Africa;

Africa’s Energy Poverty

60-80% total energy consumed is traditional biomass; Africa consumes 3% of the world’s modern energy; Low per capita total primary energy supply, biomass included World1640 koe/cap Africa 630 more than 90% of Africans do not have access to electricity Low per capita electricity consumption World2326 kWh/cap Africa 515

The Long Way From Lagos 25 years ago, another oil price increase, which became the second oil crisis, has urged generous thoughts to African Leaders. 25 years ago, another oil price increase, which became the second oil crisis, has urged generous thoughts to African Leaders. Access to energy should not became an obstacle to socio-economic advancement of their continent. Access to energy should not became an obstacle to socio-economic advancement of their continent. African countries should find ways to share their energy resources. African countries should find ways to share their energy resources.

The Long Way From Lagos So was envisioned “Energy cooperation within African countries” in a famous declaration known as the “Lagos Action Plan” (1980). So was envisioned “Energy cooperation within African countries” in a famous declaration known as the “Lagos Action Plan” (1980). Various contributions have been deployed in that respect at various levels to support and bring these thoughts into existence: Various contributions have been deployed in that respect at various levels to support and bring these thoughts into existence: UNDP, World Bank, Other UN bodies, Sub- Regional Economic Commissions, AfDB (African Development Bank), WEC (world energy council), NEPAD (New Parternship for African Development). UNDP, World Bank, Other UN bodies, Sub- Regional Economic Commissions, AfDB (African Development Bank), WEC (world energy council), NEPAD (New Parternship for African Development).

WEC’s Contribution WEC in its regional programme in Africa has pushed further the work initiated by the AfDB - In two phases. Phase One of WEC’s study has shown that: Energy cooperation in Africa is building up; Energy cooperation in Africa is building up; It grows no matter the various obstacles; It grows no matter the various obstacles; It needs to be enhanced. It needs to be enhanced.

WEC’s Contribution Phase Two has tried to harness the lessons from some “successful stories” that could serve as reference knowledge in other energy cooperation projects and, that could serve as reference knowledge in other energy cooperation projects and, that could specifically serve in the development of some of the projects identified in the NEPAD Short Term Action Plan (STAP). that could specifically serve in the development of some of the projects identified in the NEPAD Short Term Action Plan (STAP).

WEC’s Contribution Phase Two has focused on some of the issues that have appeared of great importance for Africa: Hydropower; Hydropower; Natural gas; Natural gas; Assessment of African experience in regional electricity interconnection; Assessment of African experience in regional electricity interconnection; Assessment of African experience in cross-border gas projects. Assessment of African experience in cross-border gas projects.

WEC’s Contribution Hydropower development And specifically “big hydro” and dams construction have become a contentious subject in the international debate related to the social and environmental impacts of dams. Hydropower is an energy resource that is available in Africa and that can be adequately developed with due consideration to these social and environmental impacts.

WEC’s Contribution Hydropower development Nelson Mandela about this controversy on dams (2000): “The problem is not the dams. It is the hunger. It is the thirst. It is the darkness of a township. It is the rural huts without running water, light or sanitation”.

WEC’s Contribution Natural gas development Can play a significant role for the betterment of the continent’s energy situation: Some of it has been and is still being flared in some countries; Its development and use will be a positive step vis-à-vis the climate change global issue.

WEC’s Contribution Natural gas development Its development and use depends on market development in Africa and beyond. Some interesting projects to come: WAGP (Nigeria-Ghana and beyond) WAGP (Nigeria-Ghana and beyond) NIGAL - Trans Saharan gas pipeline (from Nigeria to Algeria and beyond). NIGAL - Trans Saharan gas pipeline (from Nigeria to Algeria and beyond).

TransMed Gas Pipeline

WEC’s Contribution Regional electricity interconnection Some lessons from the SAPP (Southern Africa Power Pool) can be useful to some identified projects in the NEPAD S.T.A.P.

WEC’s Contribution Cross-border gas projects Some lessons from the Transmed (Algeria - Tunisia - Italy gas pipeline) (Algeria - Tunisia - Italy gas pipeline) could be useful to the WAGP. could be useful to the WAGP.

WEC’s Contribution 1 st Report (Phase I) 1 st Report (Phase I) “The Potential for Integrated Energy Development in Africa - a Discussion Document”; (December 2003). 2nd Report (Phase II) 2nd Report (Phase II) “Regional Energy Integration in Africa”; (September 2005). (September 2005). WEC can contribute to support the efforts aiming the reduction of energy poverty in Africa. WEC can contribute to support the efforts aiming the reduction of energy poverty in Africa.

THENTH AFRICAN OIL & GAS TRADE AND FINANCE CONFERENCE Thank You!!